COMPLIANCE
Payroll’s partners Global payroll
Gretchen Inouye ACIPP, payroll administrator and the American Payroll Association’s (APA’s) 2015 payroll woman of the year , explains why it’s so important for payroll to communicate with its key partners and who those key partners could potentially be
W ho are the key partners when it comes to working with payroll? While the ideal answer might be everyone within the organisation, this may not be practical or even possible, especially in large organisations. In most cases, these key partners will play a role in an organisation’s internal functional areas of human resources (HR), benefits, accounts payable (AP), accounting / finance, tax, audit or information technology. If any processes or financial transactions are outsourced, there will be external partners as well. More complex organisations could well have even more relationships, including with bargaining unit representatives and outside auditors. Why is communication so important? No matter how many relationships an organisation has, success depends on the quality of the shared communications among key partners, because there will always be questions that arise. For example, HR may have responsibility for obtaining and reviewing Form I-9 and relevant documents for a new
hire. If the new hire identifies as a nonresident alien, does HR know the employee may have different Form W-4 requirements to resident aliens or citizens? Has payroll been informed? If the nonresident alien employee is on a visa type with an exemption for social security and Medicare, such as an F-1 or J-1 visa, does HR know, again, that payroll needs to be informed? Questions like these make it clear that communication among partners is important. Questions like these make it clear that communication among partners is important
been processed on the HR / payroll system. Does AP notify payroll as soon as these taxable payments have been made, so payroll can make timely tax deposits and ensure accurate reporting? Does AP know these are not Form 1099-MISC items? What can payroll do to help ensure all relevant information is received? In this example, it’s clear that AP and payroll must communicate with each other regularly and effectively. Here’s a final example to consider. As per the 401(k) plan, the 401(k) administrator should be notified when a participant employee terminates, so notices required under the plan can be sent to the current address for the employee on a timely basis. Whose responsibility among the key partners is it to notify the administrator? Is it done? Is there adequate tracking? The preceding examples are not uncommon events for payroll and its partners to encounter. The practice here is to remember to always communicate with payroll’s key partners for the benefit of your company and your fellow employees.
Here’s another example: AP issues a signing bonus or relocation allowance cheques to individuals who haven’t yet
The APA, www.americanpayroll.org, is the nation’s leader in payroll education, publications and training. This nonprofit association conducts more than 300 payroll training conferences and seminars across the country each year and publishes a complete library of resource texts and newsletters. Representing more than 20,000 members, the APA is the industry’s highly respected and collective voice in Washington, D.C. Get more information at www.americanpayroll.org.
The Global Payroll Management Institute (GPMI), www.GPMInstitute.com, spearheads the APA’s global initiatives to provide the world with a leading community of payroll leaders, managers, practitioners, researchers and technology experts. Subscribers connect with each other through networking discussions, collaborative opportunities and access to education and publications dedicated to global payroll strategies, knowledge, research, employment and training. GPMI also publishes several global payroll texts and white papers as a benefit to subscribers. Get more information at www.GPMInstitute.com. n
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 22
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