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ultimate responsibility for the accuracy and timeliness of payroll as well as complying with all the relevant employment and payroll laws. Customization Challenges Most service providers generally assume standardized processes and general forms of compensation (monthly salary, bonuses, certain common benefits-in-kind, paid and unpaid leaves, etc.) when building payroll processes for each country.
specific payroll functions, resulting in customized management of those pieces, either internally or through a third party. Although the service provider is the “payroll expert” for a particular jurisdiction, the employer should have internal staff that are knowledgeable enough to be able to review payroll output (registers, payslips, bank files, etc.) to ensure accuracy and completeness. Sometimes specialized service providers (tax accountants, labor attorneys, consultants, etc.) are needed for unique situations where the payroll administrator may need additional guidance, such as equity compensation, employee assignments in other countries, and dealing with certain forms of executive compensation. Does the employer need further assistance in global mobility administration (assignees in other countries, expats, etc.) and multi-country tax compliance (hypothetical tax, tax equalization, etc.)? Who Administers What? U.S. payroll professionals sometimes expect the payroll
If the employer has non- standardized or highly
customized processes, it will be much more difficult to outsource
Of course, even if payroll functions are outsourced, the company still retains ultimate responsibility for the accuracy and timeliness of payroll as well as complying with all the relevant employment and payroll laws.
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GLOBAL PAYROLL MAGAZINE ISSUE 8
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