04:05 Issue 6

04:05 GLOBAL PAYROLL

Selecting

ISSUE 6 I 2024

UNLOCKING BUSINESS STRATEGY: Leveraging Year-end Data

Insights from Payroll for Business Growth

HUMAN RESOURCES TECHNOLOGIES The new darling of investors

NAVIGATING THE NEW NORMAL Payroll in the Gig Economy

PAYROLL COMPLIANCE Hidden risks in your payroll system

GLOBAL PAYROLL MAGAZINE

Foreword

Payroll System , the worth of Workday integration with Sage, Removing Fear from the EU P ay Transparency Regulations and how The Nusantara Project will impact payroll. We are grateful for their commitment to sharing their experiences and expertise. We’re grateful to our loyal and growing readership too and hope that you can find the space and time to recognise and celebrate your own achievements this year before you tackle the busy season ahead. Our cover image is intentionally meditative, a moment of pause before letting things go. With To-Do lists getting ever longer, it’s really easy to get caught up in the what’s next? energy of this time of year. Ticking off tasks is satisfying but it’s also important to remember to turn back to see how far we have come. We all deserve that.

As global payroll professionals brace for the onslaught of year-end, this is a good time to reflect on the year we will soon leave behind; the advances we have made, the personal and organisational wins and the challenges we have overcome. As well as being a thought-provoking piece, Rick Hammell’s cover story on Leveraging Year- end Data Insights from Payroll for Business Growth feels like a perfect metaphor for taking what we have learned and using those lessons to our advantage. The release of this issue marks the half birthday of 04:05 , as we enter our sixth month of publication. Fittingly it is packed with informative, knowledge-rich pieces from writers across the global payroll community reflecting on Navigating Payroll in the Gig Economy , The 6 Hidden Payroll Compliance Risks in your

CEO Global Payroll Association Melanie Pizzey

Contacts The Global Payroll Association , 49 Greek St, Soho, London W1D 4EG. Tel: +44 (0)203 871 8870 Melanie Pizzey - CEO and 04:05 Executive Editor: melanie@globalpayrollassociation.com Rich Robins - 04:05 Designer: hello@megandmore.co.uk Hayleigh Blinkhorne - events/vendors/advertising: hayleigh@globalpayrollassociation.com General enquiries/mentor scheme/training : info@globalpayrollassociation.com Michael Baer - US contributor: mike@globalpayrollassociation.com Nilufer Gul - GM APAC/Australia: nilufer@globalpayrollassociation.com Tel: +61 (0)413 749 714

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08 Unlocking business strategy Leveraging Year-end data insights from payroll for business growth 12 Workday integration

with Sage Is it worth it? 18 AI meets payroll

Streamlining processes for the modern workplace

26 I’m Dreaming of an alright Christmas Festive considerations for payroll professionals 32 Human resources technologies The new darling of investors 36 Payroll in the Gig economy Navigating the New Normal 40 Payroll systems 6 hidden payroll compliance risks 44 Payroll data Minimise, retain, protect 50 Payroll project implementation Challenges and best practices 56 The Nusantara Project The Article 21 facility and its impact on payroll 62 Parental leave policies across the globe How to achieve fair and transparent parental leave 66 The EU pay transparency regulations Removing fear from the regulations

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CONTENTS

72 The career you didn’t know you needed A career that offers growth, stability and a sense of purpose 78 U.S. practitioner’s perspective Health plans and payroll 86 What is long service leave in Australia? Understanding local legislation Interactive global payroll news 84 Diary of an HR Manager 94 GPA Webinars The latest global and in-country payroll topics and trends 96 Asia Briefing Overview on Asia news 98 GPA Training ALSO IN THIS ISSUE 06 NEWS Join our experts as they take you through the process of running payrolls in different countries

101 Find a vendor

A comprehensive list of suppliers to the global payroll industry

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GLOBAL

Return to office mandates prompting employees to seek new jobs

Tide acquires Onfolk payroll solution

GERMANY

AUSTRALIA

Ebury appoints Klaus Hoffmann as country manager

Former United Petroleum outlet operator faces court over false records

AUSTRALIA

NIGERIA

University of Sydney spent millions on consultants while casual staff stayed underpaid

Government proposes 25% effective tax rate on N100 million monthly earners

USA

SOUTH AFRICA

Meta employees fired for spending food allowances on personal items

Questioning the 2025 salaries forecast

SAUDI ARABIA

USA

New wage insurance is a worker protection milestone

IRS Releases Some Key 2025 Payroll Amounts

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DUBAI

Cercli raises $4m to transform workforce management and compliance in MENA

Royal Household advertises sub- minimum wage housekeeping job

GLOBAL

BANGLADESH

ADP announces acquisition of WorkForce Software

ILO recommends labour law reform to end garment sector unrest

Click on the interactive map to view other world news

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ISSUE 6

Unlocking Business Strategy: Leveraging Year-end Data Insights from Payroll for Business Growth By Rick Hammell

GLOBAL PAYROLL MAGAZINE

Year-end payroll reporting has become more than just a compliance requirement, it is a goldmine of strategic insights capable of informing business decision- making and enhancing strategic planning.

Global payroll reporting has immense value to offer an organization, providing insights into patterns in workforce expenses, productivity, and operational efficiencies. These insights can drive a company’s strategic planning and provide an invaluable competitive advantage. What’s even more interesting is that payroll’s capabilities are constantly evolving, becoming more influential as companies recognize the value it brings beyond simply paying employees correctly and on time. Payroll isn’t just wages. Yes, remuneration sits at the heart of the technology and its inherent capabilities, but the data payroll offers elevates the service to a key strategic business function. This is the data gathered from employee surveys, vacation days, pay rates, overtime, taxes, payroll processing costs, employee benefits and more. Every line item provides insight into an employee, how the business is approaching specific hires, employee costs and

productivity. If managed correctly, this richly layered data can become a business advantage. Considering how payroll can be an expensive investment, it’s worth ensuring that the business is extracting every last drop of value from it. It’s also important to remember that the cost of a payroll platform is equally an investment in accuracy. The right tools will deliver the right data, which is key to transformative business decision-making. Understanding the strategic value of payroll data Payroll data can reveal previously unknown factors around the health of an organization. Are operations efficient or are there potential bottlenecks holding up productivity or even payroll admin? Can the business benchmark employee wages and benefits against those of the market to see how competitive it is, and how this data can support retaining and attracting talent? When decision-

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period. This is immensely useful to organizations that deal with seasonal employment trends and require advance planning to ensure they have the requisite workforce. Payroll data gives the business the time and space needed to plan for an aging workforce and provide skills development and training to their replacements or new hires well in advance. This is invaluable as the average cost of hiring a new employee is currently around $4,700 – and this is a cost that excludes the additional fees of training, recruitment and finder’s fees . Visibility into the timeframes of employees aging out of the workforce can help companies better strategize budgets to ensure they maintain the talent pipeline. Multinational organizations can use the data to gain insight into workforce planning across metrics such as: Country-specific labor cost comparisons The impact of currency exchange on total compensation Regional benefit cost variations Compliance costs, and Local market competitiveness It’s information that gives companies the space they need to optimize their global footprint and plan workforce expansion, consolidation and compensation.

“ Every line item provides insight into an employee, how the business is approaching specific hires, employee costs and productivity. If managed correctly, this richly layered data can become a business advantage. ” makers can see gaps in performance or areas of substantial cost savings, they can better plan expenditure and talent management. Payroll data can optimize labor costs. The visibility provided by year-end payroll data allows the organization to evaluate the Total Cost of Workforce (TCOW) and marry this insight to patterns across overtime, shifts, variable pay, vacation time and more. Decision-makers can then see which departments have unusual labor cost patterns or use the data to optimize staffing levels over a specific

Enhancing productivity and performance

Finally, payroll data is a window into productivity. Companies gain valuable insights into workforce effectiveness

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when correlating payroll data with performance metrics. The data shows the revenue per employee across specific departments, labor costs as a percentage of revenue, overtime costs versus productivity gains (or losses), return on compensation investments, return on training investments, and the impact of incentive programs on overall employee performance. Payroll technology places all this data at the fingertips of the right people within the organization and helps align business strategies with workforce investments. Modern technology doesn’t just open the window to how companies can optimize their performance; it opens the door. The tools included in these platforms are sophisticated and capable, providing data analysis that delivers immense value. Companies can integrate payroll data with HR, finance and operational metrics to gain clarity into the health and performance of the business across multiple levels. Visualization tools can develop intelligent reports that inform strategizing and planning – real-time reporting tools can enable agile decision- making. The latter is an invaluable benefit for companies wanting to remain ahead of the competition and better manage how the business navigates disruption. Closing the door on the black box Traditionally, payroll data and insights have been challenging to access and analyze. Almost a black box thanks to the variable data streams, the complexity of the analysis, the silos, and the scale, payroll was just that – payments. Now, year-end payroll reporting is a single pane

of glass, providing a wealth of strategic insights that can be integrated into decision-making and used to optimize multiple facets of the organization. Companies capable of leveraging these insights effectively can make more informed decisions around their workforces, investments, operations and costs. And what is the road to fully realizing this potential? It is as simple as changing the view of payroll from an administrative function to a strategic asset.

Author: Rick Hammell

With over 16 years of experience in Global HR Operations management, Rick Hammell is currently the Founder and CEO of Helios, a new HCM and Payments platform. He is also the Founder of Atlas, an HR Tech company he established in 2015. Driven by his dedication to streamlining global expansion, Rick pioneered the innovative Direct Employer of Record business model, specifically designed to support companies with ambitious international aspirations, while fostering equitable opportunities for businesses to compete on a global scale.

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WORKDAY INTEGRATION WITH SAGE: IS IT WORTH IT?

By Eddie Van Zyl

GLOBAL PAYROLL MAGAZINE

Workday or SAGE? In the HR and payroll world, it is not uncommon to have favourites... But instead of choosing one over the other, what would it be like to bring both of these highly capable systems together?

Lack of certain features SAGE and Workday cannot fully satisfy all HR needs. They both lack certain features – something which becomes evident as changes are brought about and a company develops new needs. Workday, for example, only covers a few African countries. As such, its assistance is incomplete, which is problematic for companies looking to expand to African countries not covered by Workday. SAGE, on the other hand, covers most of the African continent – which is why an integration may be needed. In fact, in such cases, integration would not only make sense, but it would very much be pivotal to expansion as well as the optimal running of operations. “Reluctant to let go of a well-established system and to undertake the massive administrative project of changing from Workday to SAGE, managers often find that integration is the more practical and least effort-intensive option.”

What would the time and effort implications be like? Why would such an integration be desired? And most importantly: is it worth it? We have successfully implemented and are currently running such an integrated system at Africa HR Solutions. In this article, let’s go over these questions as well as other practical considerations which are likely to come up during such a process. Why integrate SAGE into Workday or vice versa? While Workday and SAGE are extremely efficient on their own, they are not all-powerful systems either. There are many reasons why an integration may be required, among which are:

A new partnership with an HR service provider

Partnering with a new PEO or a new payroll provider, for instance, may prompt the need for an integration. Why? Because it may be that the new service provider uses SAGE while your company uses Workday. Reluctant to let go of a well-established system and to undertake the massive administrative project of changing from Workday to SAGE, managers often find that integration is the more practical and least effort-intensive option.

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For employees When the need for a new system or new features is felt, users of the previous system must be duly considered. Switching systems completely would leave many employees at a loss and would require training sessions – costing time and money. Coupled with the effort of re- learning, training would disrupt the smooth flow of business, and a new system would constitute fertile ground for human errors. How does a SAGE/Workday integration work? A SAGE and Workday integration cannot happen without an API (Application Programming Interface), specifically designed for the purposes and features required for the integration. One example of a feature would be Time & Attendance. SAGE and other payroll software are not Time & Attendance trackers, so companies looking for this feature will have to mention that need. An API essentially functions as a middle person program; as a messenger of sorts between the systems being integrated. Typically, only one of the two HRIS will be “front-facing”. That is, one of the two systems will run in the background, while the other system is used as the interface for the whole integrated system. As such, data is sent, translated, sorted, and processed between the two HRIS. Data that cannot be processed on Workday, for example, will be sent over to SAGE for processing – all the while, it will be the Workday interface which will be used.

What are the time and effort implications?

The development of this API requires specific, highly technical IT knowledge and expertise. Depending on the specifications given for the integration, the development, testing, and implementation of a customised API can take between 1 and 6 months. Before that, another time consideration would be the need for meetings to establish expectations, define system specifications and verify feasibility. Beyond these initial time implications, data migrations must also be considered. If a company only has about 50 employees and does not track a lot of data about them, data migration would not take long. On the other hand, if a company has 1000+ employees and stores a lot of detailed data about them, the volume of data would naturally cause the migration process to last longer. “A SAGE and Workday integration cannot happen without an API (Application Programming Interface), specifically designed for the purposes and features required for the integration. One example of a feature would be Time & Attendance.”

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As for the testing phase, the duration will depend, for the most part, on the number and complexity of the requirements made – as well as how many subsequent adjustments would need to be made. What is the impact of integration on employees and users of the system? None. The interface that users interacted with before remains the same. All changes are only apparent in the backend. Employees don’t see where the calculation is happening and, at the end of the day, would not know any better if there had been any change – save for the introduction of new features. For payroll, for instance, a SAGE integration into Workday would work as follows: 1. You would approve the payroll. 2. You run your normal payroll processes and then, once this is done, the API will run and fetch the data from SAGE and push it back into Workday. As mentioned previously, all of this gets done with an API. But there are no standard APIs. Rather, your API gets customised per your needs and what you need to get from one system into the other. Pros and Cons of a SAGE/Workday integration Pros: Saving time Where, without an integration, there would have been manual processes involved; integrations save time and prevent human errors from being made.

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Integrations also have the benefit of providing the best of two systems, all the while avoiding the troubles associated with adopting a new HRIS (employee training, adaptation period, human errors...). While there is an initial time and financial investment, integrations such as these typically make for an optimal, smooth-running system in the long run.

Data security and confidentiality To communicate between two HRIS without an integration might mean sending confidential information via means such as emails, for instance. Naturally, this compromises security. Through the creation of an API, safety standards can more easily be met, and data security can be preserved. No need for costly new systems The overhaul of an old system can be extremely costly, not just in financial terms but in terms of time and effort as well. Since an integration brings together the best of two systems, companies save on costs when compared to the costs of a complete system overhaul. No need for staff training Because the interface employees are used to remains the same during an integration, there is no need for intensive staff training and for lengthy adaptation periods which include the very real possibility of human errors. Cons: API development time, testing phase and implementation The whole process of an API implementation, from beginning to end, can take up to 6 months and possibly more depending on the changes being made.

Author: Eddie Van Zyl

Eddie Van Zyl is a passionate Africa Payroll Specialist at Africa HR Solutions.

As a certified Sage 300 Payroll and HR Consultant with over 15 years of experience, Eddie specialises in full payroll project implementations, upgrades, and integrations. Prior to joining Africa HR Solutions, Eddie worked 13 consecutive years as a Senior Payroll Consultant for Sage.

Is it worth it? Yes.

Integrations, such as this one, are clearly worth it for companies that require new features to support their growth.

Payroll as a career: Insights from senior payroll professionals

Download the white paper

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ISSUE 6

AI MEETS PAYROLL:

Streamlining Processes for the Modern Workplace

Authors: Thenji Moyo and Dilini Loku

Artificial intelligence (AI) has revolutionized numerous industries, with the payroll industry being no exception. Traditionally, payroll professionals relied heavily on manual calculations and paper-based systems. However, the rise of AI may usher in a new era of greater efficiency and accuracy. This article will examine how AI is reshaping the payroll industry, and the legal implications as well as potential challenges that may arise with its use.

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How is AI transforming payroll?

Decree-Law No.33/2021 on Regulation of Labour Relations (the ‘UAE Labour Law’) can now grant their employees the option to opt into the voluntary alternative scheme. Employers are required to make monthly contributions to the accounts of employees who choose to opt into the scheme. According to the Cabinet Decision, the monthly contributions are to be calculated as follows: 5.83% of an employee’s monthly basic salary for their first five years of employment, and 8.33% of an employee’s monthly basic salary for every year after. The monthly contributions will then be released to the employee upon termination of their employment. AI has been deployed to effectively streamline and simplify the calculations of employee benefits. AI can first collect the relevant data needed to calculate the benefits from several sources, such as employee pay slips. AI can then be utilized to automate the calculations of benefits based on the formulas set out under the law. AI can also be utilized to accurately calculate any deductions that need to be made from an employee’s remuneration, or calculate any payments in lieu of benefits that the employee is entitled to. According to Article 25 of the UAE Labour Law, employers can make deductions from an employee’s remuneration in specific circumstances, such as to redeem any amounts granted to the employee in excess of their rights. Furthermore, under Article 29 of the UAE Labour Law, employees are entitled

Automation One of the most significant ways that AI has impacted the payroll industry is through the automation of tasks. For example, AI has been used to calculate employee benefits. Employee benefits in the UAE have recently undergone significant changes, due to the introduction of a voluntary end-of- service benefits alternative scheme. As discussed in our previous article DEWS: Modernizing End of Service Benefits in the DIFC and Beyond , the UAE Cabinet recently announced the introduction of a voluntary alternative scheme through Cabinet Decision No.96/2023 (the ‘Cabinet Decision’). According to the Cabinet Decision, employers who are based onshore and in free zones that follow Federal

“AI has been deployed to effectively streamline and

simplify the calculations of employee benefits. AI can first collect the relevant data needed to calculate the benefits from several sources, such as employee pay slips.”

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turn mitigate the risk of employers facing penalties. AI systems can also raise alerts on suspicious activities that may indicate non-compliance. Support for payroll queries In addition to their primary duties, payroll professionals are also usually tasked with answering payroll-related questions from colleagues. This may result in additional pressure and stress being put on payroll professionals and may hinder them from completing tasks. However, with the introduction of AI, this may soon become a thing of the past. Internal AI chatbots have been implemented in multiple companies to act as a guide for employees and to provide answers to common questions. In turning to payroll, AI-powered chatbots can provide employees with answers to typical payroll questions such as ‘How much pay will I receive for overtime?’ AI chatbots may also be provided with employee payroll data to answer more specific queries, such as ‘Why is this deduction being made from my remuneration?’

to payment in lieu of any accrued but unused annual leave upon termination. Compliance AI has also moved beyond automation and is now being deployed in much more complex aspects of payroll. A key example can be found in the use of AI in compliance. Payroll professionals are tasked with having to ensure that employee remuneration complies with relevant regulations for each jurisdiction. For example, payroll professionals working onshore in the UAE must ensure that employees are paid their wages through the UAE’s Wage Protection System (WPS). This can prove to be a significant challenge for multinational companies, which have hundreds of employees working across several different jurisdictions. Failing to comply with relevant regulations may result in employers facing fines and penalties, and in some cases being prevented from issuing new work permits. This is where AI comes in. AI has been used to automatically update payroll systems with the relevant jurisdiction’s laws and regulations, which may in “AI has also moved beyond automation and is now being deployed in much more complex aspects of payroll.”

“Internal AI chatbots have been implemented in

multiple companies to act as a guide for employees and to provide answers to common questions.”

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“AI platforms have shown tendencies to produce inaccurate information or even ‘hallucinate’; meaning information is made up based on existing data. Errors have the potential to create

significant consequences for employers.”

What considerations must be made while using AI? While the above demonstrates that AI has the potential to significantly transform the payroll industry, risks that may arise from using AI must be considered. The risk of inaccuracy with AI is especially prevalent. AI platforms have shown tendencies to produce inaccurate information or even ‘hallucinate’; meaning information is made up based on existing data. Errors have the potential to create significant consequences for employers. For example, errors in calculating deductions from an employee’s remuneration can result in unlawful deductions being made. Unlawful deductions from an employee’s remuneration may result in an employer facing fines of up to AED 1,000,000 according to Article 63 of the UAE Labour Law. Furthermore, making inaccurate deductions may also damage the trust between employers and employees, and lead to disputes. Subsequently, it is important for payroll professionals to maintain human involvement and supervision when using AI, in order to mitigate the

risk of inaccuracy. Human involvement may also be required in light of the Federal decree by law No. 45 of 2021 Concerning the Protection of Personal Data (the ‘UAE Data Protection Law’). The UAE Data Protection Law sets out guidelines for the use of automated processing, meaning the processing of data through an electronic program or system which operates in an automated manner. Under Article 13 of the UAE Data Protection Law, data subjects have the right to know whether a decision was made based on automated processing. Furthermore, under Article 18 of the UAE Data Protection Law, data subjects have the right to object to, and require review of, decisions made based on automated processing. However, data subjects may not object if they give explicit consent. This means that employers may need to not only maintain human supervision when using AI but also have an established review mechanism with payroll professionals if an employee decides to object to a payroll decision made through automated processing.

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Conclusion AI is undoubtedly impacting the payroll industry by enhancing automation, ensuring compliance, and providing support for employee queries. However, balancing AI with human oversight is essential to avoid the significant risks that may arise from using AI, such as

risks of inaccuracy. By maintaining this balance, employers can harness AI’s benefits while avoiding penalties and maintaining their employees’ trust.

Authors: Thenji Moyo and Dilini Loku

Thenji Moyo (Partner) Thenji Moyo is an award-winning lawyer who heads the Gateley legal employment practice and is a qualified specialist Partner advising on all U.A.E. and DIFC employment law. Having worked in the U.A.E. for over 10 years, Thenji advises numerous blue chips, multinational, regional, local and private clients from all industry sectors on complex legal issues.

Thenji was awarded the Employment Lawyer of the Year at the inaugural G.C.C. Lexis Nexis Women in Law Awards for her outstanding contributions to the legal industry. Thenji has a keen interest in uplifting diversity and inclusion in the workplace and was awarded the Equality Initiative of the Year at the first Lexis Nexis Women in Law Awards and the Middle East Legal Awards 2022. Dilini Loku (Senior Associate) Dilini is a UK-qualified lawyer who joined Gateley in 2023 as a senior associate for employment. With over a decade of experience, Dilini has advised various businesses on complex legal queries relating to employment and pensions law, ranging from start-ups to multinational companies. She has also provided guidance in relation to restructuring, reorganisation, redundancies, transfer of employees, global mobility solutions, senior executive appointments, and terminations. Dilini is well versed in all aspects of non-contentious employment law, as she has routinely advised on and drafted employment contracts, director service agreements, consultancy agreements, business protection agreements, non- disclosure agreements, employment policies, and procedures. She is also instructed on employee benefit design matters, with a particular focus on employee share option schemes.

Global payroll’s future leverages automation, AI, and cloud solutions to streamline processes, ensure compliance, and adapt to remote work and diverse regulations. READ MORE HERE

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I’m Dreaming of an Alright Christmas

By Simon Parsons

One of the significant differences between the United Kingdom and many other nations is that the traditional New Year’s Day for tax retains the original Julian calendar alignment with what was 25th March. Through alignments in 1752 with the Gregorian calendar along with the movement of the celebrated New Year’s Day to 1st January, and some movements of leap year differences in 1800, have resulted in the present UK tax year start of 6th April annually for tax law.

Gifts An employer may provide

Fortunately, this means that for UK payroll professionals, Christmas is not also impacted by a 1st January new tax year. However, there are other implications for payroll professionals to consider during this and other festive seasons. Bonus Some employers still make cash additions to their employees for Christmas, these count as employment income and are added to the normal employee

employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas. All of these gifts can be treated as trivial benefits. For an employer with many employees, the total cost of providing a gift to each employee may be considerable, but where the gift to each employee is a trivial benefit, this principle applies regardless of the total cost to the employer and the number of employees concerned. If a benefit is trivial, it should not be included in a PAYE Settlement Agreement.

earnings for tax and Class 1 National Insurance purposes using standard payroll processing cycles.

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Flu Jab Seasonal flu immunisations. Where an employer provides employees with immunisations against seasonal flu (“flu jabs”), this is treated as trivial. Parties You might not have to report anything to HM Revenue and Customs (HMRC) or pay tax and National Insurance. To be exempt, the party or similar social function must: be open to all your employees be annual, such as a Christmas party or summer barbecue cost £150 or less per person (which can include other guests such as a partner or family member within the count).

During the COVID period of lockdown, it was confirmed that events can be virtual parties and this remains the case. Shutdowns and payment of holiday in advance If an employer pays their Christmas season holiday pay in advance, so instead of the usual one week’s pay, the employee receives two weeks followed by a week with no payment, then the payroll operation of PAYE is accounted in the following way: For employees with cumulative tax code, calculate and record PAYE using the free for the last week in which no pay is received.

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Bank and Public holidays For the second year running, Christmas Day and there are no substitute days. So when are the Christmas and New Year Ba For England Wales and Northern Ireland m Date Day of the we 25 December 2024 Wednesday 26 December 2024 Thursday 1 January 2025 Wednesday

For an employee with a week 1 / month 1 tax code, divide their holiday pay for each of the weeks and work out the PAYE separately. In both of these cases the tax period is advanced to reflect two weeks payment and the FPS reports that the number of periods covered is two for two weeks. For weekly payroll only (not two weekly, fortnightly, four weekly, lunar or monthly multiples) there are special NIC procedures to follow using either of two methods: Method A – Split the payment for each week and work out the NIC due on each individual week. This is only permitted for weekly payrolls Method B – Work out NIC on the whole sum based on the number of periods being used. This method can be used for any pay frequency. “An employer may provide employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas. All of these gifts can be treated as trivial benefits.”

And for Scotland: Date 2 December 2024

Day of the we

Monday

25 December 2024 26 December 2024

Wednesday

Thursday

1 January 2025 2 January 2025

Wednesday

Thursday

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Do public holidays have to be paid? Bank or public holidays are not a right for either leave or pay. However, an employer can choose to contractually include bank holidays as part of a worker’s statutory annual leave minimum of 5.6 paid weeks (capped at 28 days annually based on a 5 or more day week).

and New Year’s Day don’t fall on weekends

ank holidays? matches: eek

Bank holiday Christmas Day Boxing Day New Year’s Day

Some may contractually provide public holiday pay entitlements in

addition to the statutory minimum. The employment contract, along with holiday scheme terms and conditions, may state which days are specifically included such as Christmas Day and New Year’s and other days that are excluded. For some years where Christmas and other seasonal days fall on non-working days, the government may allocate alternate days as public holidays. Christmas Day 2024 and New Year’s Day 2025 both fall on a Wednesday.

eek

Bank holiday St Andrew’s Day (substitute day) Christmas Day Boxing Day New Year’s Day 2nd January

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Employers may need to decide what policies they implement and communicate with their employees and workers about paid bank holidays and the Christmas and New Year holiday season. Paying early As part of the October 2024 HMRC employer bulletin, there is a reminder for employers that where the pay date is brought forward for early Christmas season payments, that the normal or regular payment date is reported on the Real Time Information Full Payment Submission and not the actual payment date. For example: if you pay on 20th December but your normal payment date is 31st December, they instruct that the payment date reported is 31st December and that the FPS submission is sent on or before 31st December. Doing this helps protect the employees’ eligibility for income-based benefits such as Universal Credit, as an early payment could affect current and “Employers may need to decide what policies they implement and communicate with their employees and workers about paid bank holidays and the Christmas and New Year holiday season.”

future entitlements causing Universal Credit Christmas shock that employers will want to avoid for their employees. It’s the season to be jolly We wish you all a very happy seasonal payroll, hope all goes smoothly and that you have a happy New Year!

Author: P Simon Parsons MSc FCIPPdip MBCS

Simon Parsons has been a major contributor to SD Worx’s payroll expertise since 1984. Besides being influential in the development of SD Worx’s payroll services, he is also a key presence on several HMRC consultative groups and committees. A fellow of the Chartered Institute of Payroll Professionals and one of the original Masters of Science in Payroll Management, Simon is a regular author and speaker on reward and payroll. He is Chair of IReeN, the electronic exchange with government user network, and Honorary Chair of the BCS (the chartered institute of IT) Payroll Specialist Group.

Simon is a regular GPA panellist and contributor. Payroll, HR and Legal Services | SD Worx

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“Human Resource the New

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es Technologies” are Darling of Investors

Human resources, once considered a dull and unprofitable corner of the business world, has now had its Cinderella moment thanks to the pandemic. It’s like the nerdy girl next door swapped her glasses for contacts, and suddenly everyone’s swooning.

By Ayşe Nazmiye Uça

HR was always around, and the need for it never disappeared. But when the pandemic hit and working styles transformed, HR broke free from the office shackles, sparking a wave of solutions, software, startups, and scale-ups. Traditional methods like recruitment, employee management, performance tracking, and payroll have now evolved into more flexible, digital processes. This transformation isn’t just shaking up HR departments—it’s a trend that’s reshaping entire organizations.

So, what’s behind the meteoric rise of HR tech?

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1. Digitalization and Automation: Tech advancements have put business process automation on the fast track, allowing HR departments to work smarter, not harder. The shift from old-school methods to software- backed HR processes sped up, and now, organizations are snapping up digital solutions to streamline their workflows. Ask any company, and they’ll gladly share how they’re embracing digitalization. We’re all buzzing about change and the latest tech that can boost efficiency and create a better employee experience. 2. Remote Work and Hybrid Work Models: The pandemic’s remote work boom meant that managing things like employee performance needed a digital upgrade. Enter: HR tech. With remote and hybrid work on the rise, new challenges—and their solutions—surfaced. Initially, some employers went a bit overboard with the micromanaging, but it didn’t take long for them to drop those heavy- handed tactics. Instead, there’s now a demand for sophisticated solutions that focus on measuring productivity outcomes rather than breathing down employees’ necks. Many fresh startups are chasing the ideal balance, looking to improve productivity and enhance the overall employee experience. 3. Artificial Intelligence and Data- Driven Decision Making: Big data and AI have become HR’s new BFFs, offering tools for AI-supported hiring, expanding talent pools, and sharpening candidate evaluations. AI-driven recruitment tools promise

fairer, more accurate hiring processes. Thanks to AI and big data, HR pros can now tap into larger pools of talent and assess candidates more objectively, relying on data instead of gut feeling. This shift is revolutionizing both finding the right fit and speeding up recruitment. Plus, companies are waking up to the power of data analytics in HR. As businesses try to make smarter decisions about their workforce, startups offering data- driven insights and predictive analytics are becoming the talk of the town. 4.Employee Experience and Satisfaction: Today’s workforce demands more than just a paycheck—they want a better employee experience. HR tech is stepping up to the plate with digital solutions that boost performance, gather feedback more effectively, and keep employees engaged. There’s a growing focus on keeping employees happy and involved. HR tech startups are creating platforms that make employee experience a priority, helping companies attract and retain the talent they need. 5. Globalizing Regulations and Payroll: As labor laws evolve and workforce mobility increases, companies need tools to stay compliant. This has made startups offering compliance solutions hot property. With businesses going global, managing diverse teams across multiple locations has become trickier than ever. HR tech solutions are coming to the rescue, making it easier to manage global employee tracking, payroll, and compliance with a click.

GLOBAL PAYROLL MAGAZINE

Here, compliance with local regulations, data security, and privacy is crucial. Laws like KVKK and GDPR put tight constraints on how HR tech handles data. Keeping employee information safe is a must, and companies need to follow these rules if they want to stay competitive globally. HR software is rising to the challenge, offering data security features and monitoring tools that help organizations navigate both local and international regulations smoothly. 6. Integration Technologies: Connecting small HR software tools is no longer a headache, thanks to technological advancements. Back in the day, HR software was a luxury that only big companies could afford, but now, even small and medium- sized enterprises (SMEs) can get in on the action with the latest tech. 7. Customization and Flexibility: Let’s face it, many traditional HR systems feel like relics of the past— rigid and outdated. Startups are coming to the rescue, offering flexible, tailor-made solutions that fit the unique needs of modern organizations. This shift has sparked a wave of new initiatives in the HR space. All of these factors combined have led to a boom in HR tech startups, each one eager to tackle the ever-evolving challenges of today’s work environment. The HR tech sector has become a magnet for investments, giving rise to a new wave of startups. Venture capitalists have caught on to the growth

potential here and are fueling the innovation fire.

At Datassist, with our 25 years of experience in the industry, we offer technological payroll and HR services to large corporate clients, creating space for value-added opportunities in HR. In recent years, we’ve also been investing in HR tech startups, doing our part to support the sector’s growth.

Author: Ayşe Nazmiye Uça

Ayşe Nazmiye Uça is the Founder and Chairman of the Turkish Payroll Association

and established Turkey’s first payroll outsourcing company 25 years ago. Her company, Datassist, leads the market in technology-centered payroll services, catering to Fortune 500 companies and major Turkish corporations. Datassist excels in Regulation Technologies (RegTech) and continues to expand through strategic investments and business partnerships, aiming to offer comprehensive services in an evolving market. This year, Ayşe ranked 20th among Turkey’s top 100 female founders by Fast Company magazine, based on company turnover. Her life purpose is to shape organizations, create new opportunities, and guide her employees toward achieving their career goals.

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GLOBAL PAYROLL MAGAZINE

Navigating the New Normal: Payroll in the Gig Economy The gig economy has changed how we work, bringing together freelancers, contractors, and on-demand workers. This shift brings new chances and challenges, mainly in handling payrolls. Old payroll systems, made for steady employees, struggle with gig work’s fast pace and unpredictability. By Ganesh Gopalakrishnan

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Also, with workers all over the world, companies face a maze of tax laws and labor rules. Automated systems can help avoid mistakes by using technology to follow the rules. AI and automation are key to managing payroll in the gig economy. Manual processes cannot keep up with gig work’s complexity. AI can help classify workers, calculate taxes, and follow the rules in each location. AI can also make tracking time and paying workers easier. It can use apps to track hours worked and pay workers on time, thus reducing mistakes and ensuring workers get paid right. AI can give insights into payroll trends, can help businesses manage their workforce better and can find ways to improve pay schedules and predict future needs. “In the gig economy, being quick and flexible is essential. Workers expect to get paid fast, not wait for the usual pay cycle. Companies must set up systems for instant payments.”

Flexibility is key in the gig economy – workers want to choose their projects and set their own hours. Businesses like the flexibility to grow or shrink their teams as needed. And this flexibility often shows the limits of old payroll systems. Unlike regular employees, gig workers get paid based on their projects. This means their hours and pay can change and companies need to adapt their payrolls to fit these changing needs. Real-time pay systems are now a must. They help workers to get paid right away after finishing a task. This makes workers happier and helps to attract the best talent for the job. In the gig economy, being quick and flexible is essential. Workers expect to get paid fast, not wait for the usual pay cycle. Companies must set up systems for instant payments. New payment methods like digital wallets help companies pay workers in their preferred way. This makes paying workers easier and faster, no matter where they are. But there is a big challenge: following the rules. The gig economy has many rules to follow, like how to classify workers and taxes. Companies that do not follow these rules face big problems. Getting worker classification right is especially important. Getting it wrong can lead to big legal issues. It can also make companies pay back taxes and other benefits.

But there are ethical concerns with AI in payroll. AI can sometimes make

GLOBAL PAYROLL MAGAZINE

mistakes, like unfair pay or wrong worker classifications. Companies must make sure their AI systems are fair and transparent. There are also privacy issues with AI in payroll. Workers’ data is processed by AI systems and companies must protect this data and follow privacy laws. They should allow for corrections by getting the workers to check their data. Companies should also think about how automation affects workers. Automation can change how we work and interact with each other. AI can make payroll better, but it might also take away the personal touch in worker relations. Finding a balance between using technology and keeping things fair and open is key. This balance is essential for a payroll system that works well and is precise. In the gig economy, managing payroll well means finding a balance between flexibility, agility, and adhering to the rules. Companies that can change their payroll to fit the needs of today’s workers will do well and those who do not update may get left behind. As the gig economy grows, payroll becomes more important for success. The big question is: Are you ready to lead the change in payroll at your company? Does your payroll system have the flexibility, agility, and compliance needed for today’s workforce?

borders and keep up with new rules? Companies that meet this challenge will attract and keep the best workers. Are you ready to rethink payroll and lead your company into the future?

Author: Ganesh Gopalakrishnan

Ganesh Gopalakrishnan is a proficient Global Program and Client Management Leader, renowned for his expertise in HR transformation, payroll, and software services. With over 15 years of experience leading strategic global projects across the APAC region, he has a proven track record of implementing large-scale, innovative solutions that enhance operational efficiency and drive client success. Currently serving as a Global Programme Manager at ADP, Ganesh combines strategic vision with practical technical skills, effectively leading agile teams to achieve meaningful, people- centric outcomes. He holds advanced degrees from the University of Melbourne and the National University of Singapore, establishing him as a thought leader in his field. Email: ganesh.a.gopalakrishnan@adp.com Website: ADP Singapore

Can your systems manage the complexity of paying workers across

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A core responsibility for employers is to pay employees correctly and on time. While this may seem straightforward to do, Australia’s industrial laws are notoriously complex. Many businesses mistakenly believe that payroll software can navigate these complexities, but relying solely on it poses significant risks to payroll compliance. By Marcus Zeltzer The 6 hidden payro compliance risks in your payroll system

Australia’s industrial relations laws are among the most complex globally, posing significant challenges for businesses striving to maintain compliance. Many employers mistakenly believe that their payroll systems alone ensure compliance, but this misconception can expose them to substantial risks, such as wage underpayments and potential regulatory actions. The Fair Work Ombudsman, Australia’s key regulator, has emphasised the need for businesses to adopt a proactive approach to payroll compliance. Employers must look

beyond relying on their payroll software alone and implement additional measures to safeguard their business against non-compliance. The limitations of payroll systems for ensuring payroll compliance While payroll systems are essential for managing employee schedules and processing payments, they often fall short when it comes to complying with Australia’s intricate employment laws. Below are the key limitations: 1. Lack of independent verification One of the primary issues with payroll systems is that they lack independent

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