Feature insight - Global payroll
and international bank account numbers. Take Japan, for example, where taxes have to be paid in person using a paper-based system. The only way to avoid falling short is to do your research on the local financial laws and ensure that both you and your staff are thoroughly prepared before the first payment is made in a foreign country. Navigating unfamiliar local finances can be daunting, so don’t be afraid to consult a specialist if you need assistance getting your international payroll off the ground. ● Know your global cut offs – For most of us here in the United Kingdom, payday is a monthly occurrence, but this varies all around the world. In the United States, for example, most workers are paid on a bi-weekly basis. For a business that is just launching a global mobility strategy into one such country, this means that payroll managers can find themselves suddenly juggling a number of different paydays and cut-offs. Again, to avoid the delay of any payments, preparation is key. Keeping a detailed log of when each international payment needs to be processed may seem like common sense, but when we also consider the fact that in different
countries, payments will take different amounts of time to clear, it really is the best way to stay on top of your game. ● The importance of local connections – Different countries have different laws surrounding tax payments; for example, in Italy and Spain local regulations restrict tax payments being made from outside the country, dictating that they must instead be submitted locally. Being in the Eurozone, it’s not always a given that large corporates will have local bank accounts in these countries, as they can control the majority of their European interests from a single hub that is likely to be based elsewhere. For businesses to therefore pay employees based in Italy and Spain, they must ...payroll managers can find themselves suddenly juggling a number of different paydays and cut-offs
either set up local companies and bank accounts or find a trusted partner with the ability to pay taxes, employees and social security payments from their existing bank accounts within the country. This is only likely to become more complicated post-Brexit. n Useful tips The world of international payroll is complex and when you’re responsible for ensuring that a workforce stretching the globe is paid in different currencies and at different times, it can feel like a challenge to keep all of your eggs in one basket. The key to success is quite simply to plan, plan and plan some more. If your business is considering sending people abroad, read up on the local financial regulations, brief the employees who will be moving on how payroll will function while they are overseas and guide them through any action required on their part. And if you know that you ultimately need some guidance to ensure that all the necessary boxes are ticked, don’t shy away from the possibility of consulting an expert.
Employment status and employment intermediaries
Half day
This course helps delegates understand employment issues and the risks and responsibilities for employers
This course covers: ● Why employment status is important ● Statutory rights and payments liabilities ● Procedural responsibilities ● Income tax and NIC liabilities ● HMRC audit risk ● Determining employment status ● Types of worker ● Employment intermediaries ● Right to work in the UK
Book online at cipp.org.uk or email info@cipp.org.uk for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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Issue 30 | May 2017
| Professional in Payroll, Pensions and Reward |
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