As companies expand to different countries, they are faced with the tricky prospect of paying their people there. This includes dealing with the complexities of local laws and regulations and complying with them. Top payroll challenges for global companies include determination of tax withholding obligations, reporting of taxable compensation to local agencies, and year-end processing procedures.
Addressing these challenges requires investing in the right technology and expertise in those countries. Companies also need to offer employees in all countries a positive pay experience.
As companies expand, they typically address each country’s payroll individually. Over time, this approach results in a fragmented payroll landscape with multiple technologies, external vendors, and internal teams delivering widely varied services in different countries.
With little standardization, efficiency suffers, and costs start creeping up. Leadership struggles to understand, compare, and improve key metrics. Deteriorating visibility into payroll operations heightens the risk of non-compliance with external regulatory requirements and internal policies. Employee experience, especially in countries with small employee populations, takes a hit.
That is when the holistic approach of global payroll or multi-country payroll becomes attractive. A global payroll operation enables companies to standardize and centralize common payroll processes at the global level while providing flexibility to manage country-specific requirements at the local level.
Learn more about global payroll management
Typically, robust global payroll offers companies the following benefits:
For more on how companies can go about adopting holistic global payroll, download A holistic approach to HCM
Harsh Kundulli leads the competitive and market intelligence function at Ceridian. Always curious about how technology can help companies better attract, retain, pay, and engage their people, he drives extensive research and analysis on the HCM industry.
View CollectionNovember 7, 2019
October 31, 2019