Pay and Benefits

Last month we asked you whether your firm was concerned about payroll compliance on an international level. The results show that nearly half of respondents are concerned.

There are a number of reasons why a company may make the decision to take control of the payroll on an international basis. This could include problems with the delivery on a local level such as statutory processing and filing. However, the main cause for concern is the mismatch between how a business is structured and managed, and how the payroll is run. This is particularly true given the array of variations in legislation across different countries. As a result, companies often lack consistency of reports from payrolls, the level of detail varies dramatically and there is no reassurance that the payroll is compliant.

There are two forms of compliance, statutory and corporate. Firms need to ensure that they have methods of measuring incountry processes. However, it is important to remember that compliance is only one element when evaluating the payroll. By analysing the status quo and recognising the problems, full-scale change of the payroll may not be necessary.

If international outsourcing is for you, then there are certain elements to be considered. First is the standardisation and automation of wider processes and functions. This also applies to the IT systems that are in place. Second, keep the knowledge functions at the company. These are the elements which are specific to you, while transactional aspects, such as statutory rules, are more suitable for outsourcing.