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ISSUE 12 I 2025

Is Your Payroll Ready? Australia Changes Its Wage Theft Laws

PAYROLL TRANSITIONS Why Payroll Implementations Go Off the Rails

STAYING HUMAN IN THE AGE OF AI The Importance of Emotional Intelligence

PAYROLL HEROES

When Perfect Payroll Professionals Falter

04:05 FOREWORD

It’s Awards Season at the GPA!

stepping into their first workplace and the commitment to excellence that a global payroll company makes in launching a new product or service or embarking on a transformation journey. Taking a chance on making a change or a difference can feel daunting. We champion those who innovate. This month, our equally winning writers are Redefining Workforce and Payroll , charting The Rise of Intelligent Payroll , sharing HR’s Guide to Retention in 2025 and exploring What Happens When Perfect Payroll Professionals Falter . And our HR Manager is moving one step closer to a life-changing decision . The Global Payroll Awards 2025 will be hosted at The Warsaw Polo Club on 5th June 2025. I look forward to seeing many of you there and at our symposium earlier in the day. Wishing the very best of luck to all the shortlisted nominees!

A s preparations for the GPA winner: professionally and personally. Thankfully, the burden of weighing up the tough decisions about who makes the shortlist and who the ultimate winners will be falls onto the shoulders of the esteemed industry leaders on our judging panel. We are grateful for how seriously they take their duties and for the time, thought and integrity they demonstrate each year. Awards themselves reach their apex, we’ve been thinking about the qualities it takes to be a The winning attributes the team and I have been talking about are those that keep you ticking when there are 1,000 things to do, the drive of a manager to motivate their team over the final hurdles of a major project, the courage of an entrepreneur taking the first steps in a new venture or a payroll student

Melanie Pizzey

Melanie Pizzey GPA CEO

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04:05 CONTENTS

44 GLOBAL THE RISE OF INTELLIGENT PAYROLL Where AI meets global compliance 62 GLOBAL EMPLOYEE TURNOVER HR’s guide to retention in 2025

14 GLOBAL BETWEEN THE LINES Oluyomi Okunowo Senior Vice President of Total Reward and People Operations at Wella Company 22 GLOBAL REDEFINING WORKFORCE AND

26 26 GLOBAL STAYING HUMAN IN THE AGE OF AI Why emotional intelligence matters more than ever 36 EMEA MANDATORY PAYROLLING OF BENEFITS Goodbye to UK tax year end benefit reporting

PAYROLL It’s not 1995!

IS YOUR PAYROLL READY? Australia Changes Its Wage Theft Laws

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REGULARS

07 GLOBAL NEWS Interactive global payroll news 56 GLOBAL DIARY OF AN HR MANAGER

65 GLOBAL GPA JOBS Find a payroll job you love, anywhere in the world 70 GLOBAL GPA TRAINING

50 AMERICAS U.S. PRACTITIONER’S PERSPECTIVE Common employment tax pitfalls

08 GLOBAL REAL STORIES FROM PAYROLL HEROES When perfect payroll professionals falter

Join our experts through the process of running payrolls in different countries 72 APAC ASIA BRIEFING Overview on Asia news 74 GLOBAL GPA WEBINARS The latest global and in-country payroll topics and trends 76 GLOBAL FIND A VENDOR A comprehensive list of suppliers to the global payroll industry

58 GLOBAL PAYROLL TRANSITIONS Why payroll implementations go off the rails

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

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Payroll as a career: Insights from senior payro professionals

Payroll as a career: Insights from senior payroll professionals Payroll as a career: Insights from senior payroll professionals Download the white paper

Download the white paper

Global Payroll News Stay updated with news on global payroll trends, automation, compliance, AI integration, financial wellness, accurate payments, addressing wage discrepancies and more. 04:05 GLOBAL NEWS

Global

South Africa

Global

Ghana

Global Payments $1.1bn sale of payroll business Read more...

SARS expansion transforming payroll compliance Read more...

DailyPay enhances its Cycle payroll solution Read more...

Six individuals convicted in payroll corruption scandal Read more...

Amendment to expand right to work checks Read more...

Nike lays off tech workers as part of wider restructuring Read more...

42% of companies currently use AI within their payroll Read more...

Amazon prioritises high performer salaries Read more...

India

Saudi Arabia

VIEW OTHER NEWS FROM AROUND THE WORLD EMEA APAC AFRICA AMERICAS MIDDLE EAST GLOBAL

Kuwait

Consultation on changes to labour

75% of businesses face payroll staff shortages Read more...

e-visa access for expatriates in GCC countries Read more...

law penalties Read more...

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The finest payroll specialists aren’t those who never make mistakes, but those who’ve mastered the art of recovery. Global Payroll Day 2025 reminded us that behind every seamless payroll run lies countless challenges overcome and, occasionally, valuable lessons learned the hard way. Behind the Payslip: Real Stories from Payroll Heroes When Perfect Payroll Professionals Falter

Author: Helen Dooley Helen Dooley is the Chief Commercial Officer at CR Payroll. Through her experience in multiple disciplines and verticals, she brings decades of experience and a genuine passion for client support and problem-solving. Helen believes in the power of listening and the value of gaining different perspectives. The CR Payroll team are the emergency responders of payroll, spotting issues before they snowball. With years of expertise and a sixth (payroll) sense, they create bulletproof contingency plans to keep payroll running smoothly. From last-minute curveballs to system meltdowns, they’ve seen it all, and fixed it. Their proactive approach ensures businesses can rest easy knowing payroll is in expert hands.

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I n the precision-driven world of payroll, is it an uncomfortable truth that’s rarely discussed: everyone makes mistakes, even the most seasoned professionals. What separates payroll professionals as heroes isn’t an absence of errors but how they respond when inevitably faced with them. Every payroll professional can recall in an instant their first significant payroll blunder. That sinking feeling when you discover something’s gone awry after a payment run; a rite of passage every payroll professional experiences. Like skilled aircraft pilots who never forget their first turbulent landing, payroll professionals carry these memories as formative milestones in their professional development. The Myth of Payroll Perfection From the outside looking in, accomplished payroll managers appear to navigate complex regulations and systems flawlessly. Their teams

deliver accurate payments like clockwork, seemingly without effort. This perception creates immense pressure for those in the profession to maintain an impossible standard of perfection. As if payroll professionals spend their lunch breaks casually memorising tax legislation for fun instead of frantically Googling “can employees have…. “ just like the rest of us. “I’ve been processing payroll for over twenty years,” shares a Global Payroll Director at a technology company, “and I still encounter situations that leave me scratching my head. The difference is I no longer panic, I know whom to call and what resources to consult.” The reality? Even veterans with decades

of experience regularly encounter situations that momentarily stump them. With ever- changing regulations across jurisdictions and increasingly complex compensation structures, payroll perfection isn’t just difficult, it’s practically impossible. The Wisdom in Asking for Help One trait that distinguishes truly accomplished payroll professionals is their willingness to seek assistance. The complexity of global payroll means no single person can possibly know everything. As one Head of Payroll Compliance puts it, “The most dangerous payroll professional isn’t the one who makes mistakes, it’s the one who never asks questions.”

The reality? Even veterans with decades of experience regularly encounter situations that momentarily stump them.

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Building a professional network becomes invaluable in these moments. Whether through industry associations, LinkedIn groups, WhatsApp groups or relationships with trusted advisors, having colleagues to consult with transforms potential crises into manageable challenges. Communication: The Unsung Hero Skill Often overlooked but critically important is how we communicate about mistakes and their resolutions. Those supporting payroll, whether it’s IT, Finance, HR, or leadership, can only help prevent future issues if they understand what went wrong. “If you’ve flagged the same issue three times and nothing’s changed, perhaps you need to change who you’re telling, not what you’re saying,”

from Global Payroll Day 2025 might be this: your development as a payroll professional isn’t defined by avoiding mistakes but by how you respond to them. Each error contains within it the seeds of improvement, for your processes, your knowledge, and your resilience. You might consider (or already have) implementing these practices: Maintain a personal “lessons learned” document to track challenging situations and their resolutions (Your self-high-five moments!) Approach errors with curiosity rather than self-criticism Despite what Kev or Karen from Accounts said about their cousin’s experience., don’t let second-hand rumours cloud your judgment. Create your list of ‘who to ask when...’ people. Create robust documentation for unusual situations to benefit future team members (and even for

needs to become a presentation to their director with concrete examples of business impact.” Document patterns of recurring issues, quantify their cost in time and potential compliance risk, and present solutions rather than just problems. Get help in drafting that message. If you feel your concerns are falling on deaf ears, consider reframing your message or finding another set of ears! Remember that most stakeholders genuinely want to support payroll excellence; they may simply not understand the urgency or implications until you special place in the payroll hall of fame for those who can explain a complex calculation error without using the phrase “it’s complicated” fifteen times or making the finance director’s eyes glaze over. Growth Through Imperfection The most valuable lesson translate it into their language. There’s a

advises one Payroll Operations Director.

“Sometimes your perfectly crafted email to IT support

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yourself if an unusual situation ever crops up again!) Remember that your colleagues’ supportive “it happens to everyone” comments are more than just politeness, they actually mean it (and likely have their own horror stories they’re too embarrassed to share). The Confidence to Be Imperfect In payroll (and life!), it’s not about achieving perfection; it’s about developing the confidence to address imperfection effectively. The next time you encounter an error, remember, it’s not evidence that you don’t belong in payroll; it’s your opportunity to demonstrate why you do. Whether you’re processing your first payroll or your five-hundredth, embracing the inevitability of occasional mistakes liberates you to focus on what truly matters: swift resolution, clear communication, and continuous improvement. And let’s be honest, those

sometimes our greatest mistakes become our most valuable assets. Did you attend Global Payroll Day 2025? If you couldn’t make it live, we highly recommend listening back to the discussions held by the GPA. You can find them all here .

colleagues who claim they’ve never made a significant payroll error are either lying, in denial, or haven’t processed enough payrolls yet to reach their quota of spectacular blunders. Cheesy and all as it is, in the grand ledger of professional growth,

Share Your Story If you have a story, whether it’s a disaster narrowly averted or a triumph no one celebrated, please send it through. A one-liner or a few paragraphs, we’d love to hear from you. And remember, don’t assume others’ stories are more interesting than yours. Every payroll professional has unique experiences worth sharing. If you prefer talking through your experiences, we’re happy to arrange a quick call. When was the last time your payroll team saved the day? We’re waiting to hear your story. Send your stories confidentially to: helen.dooley@crpayrollsolutions.com Let’s shine a light on the people who keep the wheels turning and the payslips rolling. Because payroll is never just numbers - it’s the people behind them who make it work.

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Pour homme. Pour femme. Pour Pay Day.

Discover the allure of global payroll and mobility at www.activpayroll.com/love

04:05 INTERVIEW

Oluyomi Okunowo is Senior Vice President, Total Reward and People Operations at Wella Company, a health and beauty firm. His team is responsible for Wella’s compensation, benefits and mobility, the company’s People Support Center (HR shared service), people systems and people data and analytics across all businesses in more than 30 countries. He has a keen interest in leveraging the link between performance and reward to drive business outcomes and, as talent and workforce management evolve in the digital age, he is currently involved in the evolution of people data management, leveraging new technology. Between the L Oluyomi Okunowo

This interview has been edited for clarity.

GPA: What got you into this type of work? Oluyomi Okunowo: My first experience with overseeing payroll came with a Nigerian affiliate of a large international banking firm. My role was compensation and benefits manager, but I was responsible for

payroll in that position. The payroll manager reported to me. It wasn’t global payroll; it was more of having that overall responsibility for the payroll and HR operations function. Then, I left that firm and focused on compensation

in my next roles. While I was at the predecessor firm to the one I’m with now, my work was strictly in rewards. Then, when that firm divested parts of its business, I came back in to oversee global payroll, as well as other people management responsibilities.

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Lines

GPA: What projects are you involved in? Oluyomi Okunowo: Since the beginning of the decade, I’ve been working to consolidate all aspects of global employment with Wella, including payroll. Most recently, I’ve been leading the effort to centralize the systems, HRIS and Payroll, across the company. The move to consolidate the payroll structure into HRIS helped us to create one global payroll contract that covers all the countries. We centralized the payroll management team last year, and are optimizing processes now under that new structure: A global HR shared-service organization. We did

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engaged. But it doesn’t end there. GPA: So, how are you using technology in these operational efforts? Oluyomi Okunowo: We have a “hub and spoke” approach to our technology stack for people management. HRIS is the hub, and the technology itself rests there, and the data -- that single source of truth. Payroll is the most important spoke in the sense that it’s such a key touch point for employees in terms of delivering their pay accurately and on time. It’s why integrating systems is so critical. HR administrators struggle with so many operational tasks they have to prioritize, and nine times out of 10, they will prioritize what goes into payroll more than anything else. So, if those two systems are disconnected, you would see more manual effort towards making sure that payroll is correct

Our “North Star,” so to speak, has been improving data quality.

this by consolidating our payroll with one vendor and streamlining HRIS. Our “North Star,” so to speak, has been improving data quality. GPA: How are you accomplishing that? Oluyomi Okunowo: With quality data being our North Star, to make sure that happens, we needed data inputs and maintenance to become more automated. When you have multiple systems that data need to go in, often organizations have different people putting the data in as they understand it, often when they feel like it. The result is you don’t get data being synced up and accurate. So, what we did was to leverage technology. Connecting payroll

directly with the HRIS system, make the HRIS data the single source of truth; let all the data go there. Part of this is done through an effective people strategy that includes engagement by all, and it allows payroll to have less touch on the data that is entered and flowing through. We are empowering and driving ownership through a robust employee self- service program. With more employee self- service, more manager self-service, this gives more to people who are capable of doing things themselves rather than having to send stuff to HR to input. It starts with simple things like I want to change my bank account, or I want to change my address. That’s how we drove people to be more

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GPA: Tell me about impactful work relationships with those not in payroll. Oluyomi Okunowo: Well, first there are HR business partners and managers that serve the different areas of the business who are critical for effectively communicating payroll issues. They all have different agendas, but they are key to ensuring people are paid right. Having a good relationship with those in finance, of course, helps ensure the outputs are good and that treasury and banking relationships are solid. Those in procurement are key to successfully managing the vendor

and the cycle is met. People get paid, but the HRIS tends to get left behind. To make sure that HRIS was a single source of truth and correct, we needed to first connect payroll to the HRIS hub and then make sure that the way payroll gets fed is through HR. Now, we all know technology . . . there will still be a few things that need to be done, the exceptions; it’s not where it’s 100%. The advances we’ve made help us to absorb those instances. Further, we are using service-provider technology to integrate and help us understand the data. We are incorporating robotics and AI; they are coming into play bit by bit. Primarily, we are using these for scheduling and recruitment, but are looking at different use cases in the operations from a data management point of view.

relationships. I call them “procurement partners.” They keep an eye on service level arrangements and we rely on them when we need to have difficult discussions involving our vendor relationships. There also are those in data privacy and cybersecurity that stand out as well, who help stabilize the systems and ensure the data is collected right and available. In today’s world, with and internal practices must be in place. These people help make sure not only that we are doing it right, but they also keep an eye on any cybersecurity risks. GDPR, data needs to be secure, and proper vendor

To make sure that HRIS was a single source of truth and correct, we needed to first connect payroll to the HRIS hub and then make sure that the way payroll gets fed is through HR

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04:05 INTERVIEW

payday to allow people to do the work that needs to be done. Not having the right discipline in the processes, there comes a point that such submissions simply cannot be allowed. These things disrupt payroll. So, to me, that’s what’s challenging -- enabling the team to do effective work amid so much change and chaos can be difficult. I’m not saying that there won’t be the odd exceptions. It’s when it becomes a norm that it becomes especially challenging. GPA: What about the future of payroll, and the payroll profession? Oluyomi Okunowo: Technology will continue to enable payroll to become even more strategic than it is now.

We know each business, and their individual employees, need their own customized solution. At the same time, standards for payroll operations need to be developed and built. We talked about automation and AI. These will help get to that place of individualization that businesses may need to retain and engage talent. I see those in payroll rise to that occasion where, for example, you can reduce cutoff times and you can make payroll requests more customized to the individual. It is clear that appreciation from outside payroll toward the folks that are doing payroll will continue to grow.

GPA: What is one thing that makes your job challenging that others outside of payroll do not recognize? Oluyomi Okunowo: People outside payroll don’t realize the turnaround time challenge payroll is always facing. They also don’t recognize just how much of the business is actually moving through payroll. Payroll is akin to an iceberg. People outside see only what is visible above the surface, only the tip. They don’t understand the mass of the work that is not visible to them, making sure nothing goes wrong. In terms of the timetable, running payroll in the U.S., for example, is like a hamster wheel. There’s really limited time with all the inputs coming in to make sure it’s right before payment is made. Service level agreements with payroll, or whatever way payroll cuts off, is often set a week before

Payroll is akin to an iceberg. People outside see only what is visible above the surface, only the tip.

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Redefining Workforce and Payroll: It’s not 1995! Where Is Payroll Headed Amid the AI-Shaped Workforce of Many Colors? The workforce of the future is no longer defined just by professions but by how people work.

Ayşe Nazmiye Uça is the Founder and Chairman of the Turkish Payroll Association and established Turkey’s first payroll outsourcing company 26 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. In 2024, 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. 22 I 04:05

T hink of today’s workforce like a simulation—a sprawling city you might build in a game like SimCity. Each zone— industrial, commercial, civic—has its own logic, needs, and problems. Some are thriving; others are neglected or completely off the grid. Now imagine trying to update that simulation while it’s still running. That’s what managing the modern payroll landscape feels like.

At the recent TUBISAD “Technologies of the Future” event, Ufuk Tarhan shared a color- based classification of the workforce—blue, yellow, red, green, and black— that effectively captures this transformation. Was it Yuval Harari who first articulated society’s stratification by color? Or someone else? I’m not sure. But I want to look at this color-coded model from

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the perspective of payroll systems and payroll outsourcing. Because as working models shift, so must the systems for compensation, taxation, and legal compliance. Harari reminds us that much of society is held together by shared fictions—money, corporations, national borders. Payroll systems, too, are part of this constructed reality: built to fit the rules of an older simulation, struggling

now to adapt to a workforce that no longer fits inside neat categories.

These companies now operate with multinational payroll systems—not just local ones. This transforms payroll from a simple salary payment process into a complex system of global compliance and regulation management. It’s a sharp departure from conventional payroll outsourcing. In this group, payroll management must cover: Each country’s social security systems, tax rates, working hours, and employee benefits

Blue Class: Automation and

Compliance Under Regulatory Pressure Symbolizing structure, control and stability, the blue class represents large, established companies navigating the tightening grip of global regulation. The blue class is made up of the few large firms that manage to stay afloat in their industries.

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If they work continuously, are they considered “employees”?

Legal compliance, auditability, and data security—all critically important Outsourcing providers must offer more than operations—they must deliver full compliance solutions. For these firms, compliance, security, and data privacy have become the “payroll trinity.” These companies are the skyscrapers of the simulation—tall, visible, and heavily regulated. Yellow Class: The Freelance Economy, Informal Work Risks, and Hybrid Payroll Models The yellow class symbolizes flexibility, ambiguity, and transitional work models— those navigating the blurry space between independence and employment. Freelancers, independent consultants, project-based workers… For large companies, this group is both attractive and complex. It raises immediate questions like:

reflects startups and entrepreneurial ventures that rewrite the rules on compensation. Startups and innovative ventures often go beyond traditional payroll systems. In this class, the focus is more on: Employee stock option plans (ESOPs) Profit sharing Performance bonuses Although these elements fall outside standard salary structures, they still require integration with payroll systems for taxation and compliance purposes. Outsourcing providers can create value here by offering flexible, tech- driven, internationally compatible solutions. These players are like innovation hubs in the city simulation—dynamic, experimental, and frequently challenging the rules of the game. Green Class: Social Contributors and Alternative Payroll Models

Who is responsible for their social security? Some companies are experimenting with semi- payrolled hybrid models to handle this ambiguity. However, in Türkiye, SGK (Social Security Institution) regulations struggle to accommodate such flexibility. Once freelancers come obligations can arise. So for the yellow class, payroll is not just operational— it’s a legal balancing act. They are like the pop- up settlements in your simulation—growing fast, barely regulated, and hard to fit into zoning laws. Red Class: Stock Options, Profit Shares, and Non-Payroll Incentives Red signals energy, disruption, and innovation. This class under SGK scrutiny, lawsuits for service recognition and retroactive premium

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but also how we define compensation and legal work relationships. In this new era, payroll systems won’t just be accounting tools—they’ll be mechanisms for keeping humans included in the system. And let’s be honest: for all the talk of compliance layers, modular integrations, and global frameworks, sometimes it’s really just about making sure someone gets paid on time without having to explain their job title twice. Outsourcing firms will have to go beyond calculations. They’ll need to act more like simulation designers—constantly adjusting the rules, updating the map, and ensuring no one falls off the edge of the screen. I’m not a huge fan of Harari, but if he’s right that systems are only as strong as the stories we believe about them, then payroll is due for a narrative refresh.

Green stands for sustainability, care, and community value. This class includes roles essential to social wellbeing, often undervalued by market logic. Teachers, caregivers, social workers... Roles with high social value but low economic return fall into this category. In the future, their payrolls may be shaped through: Social responsibility initiatives NGOs Public-private partnerships with municipalities We are entering a time when these individuals require not just salaries, but social investment. They’re the parks, libraries, and community centers— essential for a functioning society but often first on the chopping block when budgets are tight. Black Class: The Era of the Unpayrolled and the Toughest Challenge Ahead Black represents invisibility and systemic exclusion.

This class lives beyond the margins of current payroll frameworks—and poses the hardest questions. This group is neither in education nor employment. They’re outside existing payroll systems—but they don’t have to stay there. Potential solutions include: State-funded payroll through universal basic income (UBI) Micro-payrolling via platform economies Temporary employment via municipalities and social enterprises For the black class, payroll isn’t about income—it’s about recognition and access to rights within the system. They are the parts of the map you haven’t unlocked yet—the neighborhoods where no data flows, but real lives exist. Conclusion: Smart Payroll Systems for a Multicolored Workforce Artificial intelligence is transforming not just jobs,

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The advance of artificial intelligence isn’t just coming, it’s here. In every corner of the business world, automation and AI reshape how we work. Payroll sits squarely in AI’s crosshairs - data-heavy, rules-based and repetitive. Tasks that once took hours now happen in seconds. Staying Human In The Age Of AI Why Emotional Intelligence Matters More Than Ever

Author: Richard Rowell Richard Rowell is the Chairman and Co-founder of Ascend Payroll Ltd, a premium managed payroll service. A Chartered Accountant by training, he departed from traditional accounting to build an award-winning payroll service for businesses and public sector organisations, which he successfully sold in 2021 before launching Ascend Payroll. unwavering commitment to ethical business practices, which he demonstrates through his involvement with local social enterprises and sustainable property development projects. He firmly believes that operating with strong values creates a genuine competitive advantage in the marketplace. Beyond his business acumen, Richard is distinguished by his

B efore we resign ourselves to a future run by machines, let’s reframe the conversation. We talk about AI lessening the process burden so payroll people can handle strategic work, but how long before AI handles this, too? Yet, we must not confuse intelligence with wisdom or automation with empathy.

What AI excels at is efficiency. What it lacks is understanding. Machines can’t read the room. They don’t sense anxiety in a client’s voice or spot pride in an employee’s founder once confided about a make-or-break payroll run. They don’t care when someone’s trust hangs by a thread. effort. They don’t remember that a

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before AI handles this, too? “

We talk about AI lessening the process burden so payroll people can handle strategic work, but how long

That’s where we come in. However good AI gets at payroll processing, I don’t believe it ends human value in payroll. It’s the beginning of a new era where emotional intelligence (EQ) becomes our competitive edge. The Role of EQ EQ is the ability to understand and manage

your emotions, and to recognise and influence others’ emotions. It includes empathy, social skills, self- awareness, motivation, and self-regulation. In managed payroll services, EQ shows up as: Proactive communication that calms a stressed client Team leadership that supports people

through tech transitions Service design that recognises the ‘why’ behind client needs Customer care that fosters trust and loyalty EQ is the foundation of outstanding service. And outstanding service is where human payroll professionals must outperform software alone.

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Nothing New to See Here While EQ’s language may sound ‘of the moment,’ its essence is not. In our industry, we’ve known it forever as good old- fashioned customer service. Think of payroll pros who remember every client’s quirks, catch issues before they escalate, stay steady under pressure, and calm teams. They’re high-EQ operators. Although it might sound counterintuitive, in the ‘age of AI’ we need people more than ever. As AI takes over repetitive tasks, what remains are interactions requiring emotional judgement, empathy, and trust.

Trust and Relationships are Still The Foundation Whether running a

because there’s pressure behind the scenes. EQ enables us to pick up on these cues, to communicate with care, and to create lasting relationships that go beyond the transactional. In my own career, I’ve found that some of the most powerful client moments happen not when things go perfectly, but when something goes wrong, and we respond with empathy and ownership. That’s when EQ builds trust in a way AI never could.

UK domestic payroll or managing multi-country operations, one thing remains - payroll is built on trust. Clients rely on us to get things right every time. But more than that, they want to feel supported by someone who understands the stakes. Technology can deliver precision, but it doesn’t build relationships. It doesn’t sense when a client is anxious ahead of a big transition, or when a tone needs softening

More Than a Soft Skill, EQ is a Strategic Capability

Leaders who prioritise EQ aren’t just investing in people; they’re future- proofing their business. This means training built around EQ, rewarding EQ, not just performance targets, building it into recruitment, and weaving it through your culture. A focus on EQ also provides an opportunity

Lastly, as a leader, it is important that you lead by example. Founders and managers who demonstrate emotional intelligence create a culture where EQ can thrive.

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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

Embracing AI, but Not Losing Ourselves I’m excited about AI making payroll better and more accurate. But payroll is a people business masquerading as a process business. The more automated it becomes, the more this truth stands out. So let’s keep building better systems. Let’s automate, integrate, innovate. But let’s never forget that it’s people who press “send,” people who pick up the phone, people who make the difference when it matters most.. As we move forward, my hope is that we don’t just get excited about what AI can do, but also stay focused on what only we can do. Because, in a world of infinite intelligence, emotional intelligence will set us apart. Click to read Richard’s first article, Is There a Future for Managed Payroll Services?

to redesign services around human moments. Build workflows that leave space for human intervention at critical points. If AI does the ‘heavy lifting’, your people should do the ‘hand- holding’. EQ should also be a lens for your product or service innovation. When you develop new services or tools, consider how this will make the client feel. Will it empower them, reassure them, or make them feel disconnected? Lastly, as a leader, it is important that you lead by example. Founders and managers who demonstrate emotional intelligence create a culture where EQ can thrive.

When issues arise, how we handle them matters. I’ve seen underpayments needing urgent resolution because someone needed that money for rent. AI might flag the error, but a human must step in, take ownership, and make things right. This is critical in global contexts, where cultural norms and expectations vary widely. EQ helps navigate these nuances in delivering news, responding to feedback, or collaborating across time zones. Context is everything, and EQ helps us read it. AI doesn’t truly understand context. It can flag anomalies, but doesn’t know why they matter. That’s where EQ steps in. We need to read situations, understand wider pressures, and respond with balanced accuracy and compassion. That might mean knowing when to push back on a rushed request, and when to pull out the stops because a client is under pressure.

Payroll is Personal It’s easy to think of

payroll as numbers, but it’s deeply personal. For employees, it’s about livelihoods. A pay mistake isn’t just inconvenient;

it has real-world consequences.

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From January 1, 2025, the intentional underpayment of wages is a criminal offence in Australia under the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 Laws: Is Your Payroll Ready? Australia Changes Its Wage Theft

Author: Vidhi Kachru Vidhi is a seasoned solution lead, managing the solution lifecycle from discovery to delivery with over 12 years of experience in the industry. Vidhi has experience of working with major HCM and Payroll applications which helps her understand the typical challenges of growing organizations and complex payroll landscape. Working with Ramco Oceania region for 6+ years Vidhi has onboarded multiple customers on the platform to ensure their solution vision is achieved.

T his requires urgent overhauls of the payroll system, creating an opportunity for payroll managers to become strategic leaders. With penalties of up to 10 years’ imprisonment for individuals and

fines of $7.825 million for companies, payroll accuracy is now a legal risk function. This places the accountability for wage theft on employers, rather than on software vendors or processing companies. Are payroll teams ready for this new reality?

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In short, teams must demonstrate payroll compliance through clear records and established protocols. Payroll platforms must deliver precision, transparency, and control, not just automation. “

Wage Underpayments Are Now a Criminal Matter, Not Just a Compliance Issue Under the amended legislation, employers

superannuation, leave, or other entitlements face criminal charges. While genuine errors that are promptly rectified aren’t criminalised, businesses must prove that mistakes were unintentional and that systems were in place to prevent them. With only 32% of enterprises

requirements, the burden has shifted from compliance to legal accountability. Payroll Systems and Teams Are the First Line of Defence For payroll professionals, significant changes are

who intentionally underpay wages,

feeling prepared for global transparency

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Rising Expectations: 40% of payroll

ahead. As a Ramco client, a payroll manager from a leading Australian services firm noted, “What keeps me up at night isn’t just getting the calculations right – it’s proving we’ve done everything reasonable to ensure compliance.” Payroll teams are experiencing challenges across multiple dimensions: Heightened Legal Scrutiny: Even though honest mistakes aren’t criminalised, repeated errors could be interpreted as negligence or wilful blindness Complex Compliance Environment: Award interpretation, regular rate changes, and intricate entitlement calculations create countless opportunities for error Documentation

featuring:

Proactive anomaly detection before finalisation of pay runs Automated alerts for potential award breaches or inconsistencies Comprehensive audit trails documenting all system activities Seamless integration with time and attendance systems Tools to identify and address potential underpayment liabilities Demand for Smarter Tools: AI-Powered Anomaly Detection AI/ML-driven anomaly detection in payroll platforms now continuously scans for pay variances before finalization, catching transforms payroll from a passive calculator to an active compliance tool, identifying issues like misapplied tax rates, manual errors, or award misinterpretations while giving teams time both systemic and one-off errors. This

managers report concerns about increased

administrative burdens resulting from the new laws In short, teams must demonstrate payroll compliance through clear records and established protocols. Payroll platforms must deliver precision, transparency, and control, not just automation. Outsourcing won’t remove employer accountability. This marks the end of spreadsheets, manual overrides, and siloed tools. Is Your Payroll Platform Ready for the Compliance Crackdown? Traditional systems designed primarily for calculation and disbursement are no longer sufficient in today’s landscape. Modern payroll systems must now serve as active guardians against non-compliance,

Demands: Teams must maintain comprehensive audit trails to demonstrate good-faith actions

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legal risk, foster employee trust, and enhance their brand. In short, they can future-proof their business. Advances such as Ramco Systems’ Anomaly Engine continuously scan for pay variances, enabling payroll teams to proactively address potential underpayments and providing businesses with auditable evidence of compliance efforts. By proactively monitoring regulatory changes, it is possible to remain current with all statutory requirements and gain true peace of mind. Key Takeaways 1. Wage underpayments are now a criminal matter, not just a compliance issue 2. Payroll systems and teams are the first line of defence 3. Accuracy and auditability are non- negotiable 4. Demand for smarter payroll tools and skilled staff will grow 5. Prevention and transparency are the best protection

As Australia adapts to new wage compliance laws, leading payroll platforms are embedding regulatory intelligence to automatically track and apply legislative changes.

Looking Ahead: The Future of Payroll Technology As Australia adapts to new wage compliance laws, leading payroll platforms are embedding regulatory intelligence to automatically track and apply legislative changes. This shifts much of the compliance burden to the provider, reducing risk and freeing payroll teams to focus on strategic priorities. Conclusion: From Compliance Risk to Competitive Advantage Australia’s new wage theft laws pose challenges—but also offer a chance to turn payroll into a strategic asset. With advanced, compliant payroll systems, businesses can mitigate

to correct potential underpayments before payment processing. Demonstrating Compliance: The New Imperative Advanced payroll platforms now enable businesses to demonstrate a reasonable and proactive approach to compliance. Implementing systems that both process and review payroll for issues helps businesses establish a defensible compliance position with clear audit trails and variance explanations,

thereby simplifying dispute resolution,

satisfying regulators, and providing payroll teams with peace of mind.

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Goodbye to UK Tax Year End Benefit Reporting (or is it?) The UK government has announced a delay in the implementation of mandatory payrolling of benefits until April 2027 from its original start date of April 2026.

Author: Susan Ball

Susan Ball is a partner at RSM UK , and she has more than 30 years of experience working extensively in the employment tax, investigations and reward field. Susan is the past President of the Chartered Institute of Taxation and sits on its employment taxes committee.

B ack in Issue 4, RSM UK commented on some of the challenges employers and software providers would face in meeting the April 2026 deadline without the legislation or answers to several

significant questions. So, this postponement is beneficial as it gives employers additional time to plan and implement the payrolling of benefits legislation. It also gives software providers time to meet the new software requirements. Both should

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expenses through payroll software – an update - GOV.UK To summarise, from April 2027, employers will be required for most benefits to establish the annual cash equivalent of Benefits in Kind (BiKs)

released a technical note that requires careful consideration by employers, benefit and payroll providers, and software developers. Which can be found at Technical note: Mandating the reporting of benefits in kind and

use this extension to collaborate to ensure they are well-prepared for the upcoming changes, which should not be underestimated. To enable this, in conjunction with the announcement, HMRC

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for the mandatory implementation,

The technical note outlines a timeline for the mandatory implementation, including the expected publication date of the draft legislation and further guidance for consultation in autumn 2025.

including the expected publication date of the draft legislation and further guidance for consultation in autumn 2025. With updated legislation and guidance to be released in July 2026. In the meantime, the technical note does provide further clarity on what will be required, giving employers sufficient, in many cases, information to meaningfully start preparation plans. Key areas highlighted include: Registration requirements: There will be no need to register for mandatory payrolling of benefits, but registration will be required for voluntary payrolling before the 2027/28 tax year. In anticipation of mandatory payrolling, HMRC will remove BIK from employees’ PAYE codes for 2027/28 so that they are not taxed twice.

and divide them by the number of relevant pay periods in the tax year for each employee. The resulting amount for each pay period will be subject to Income Tax, similar to regular earnings, and will also be liable for Class 1A National Insurance Contributions (NICs). This amount must be reported alongside employee earnings in each pay period. If the BiK value is unknown at the start of the year, employers should estimate the taxable value and divide it by the number of relevant pay periods. Although HMRC do acknowledge that there 38 I 04:05

may be instances where it is only discovered after the tax year has begun that an employee has received a BiK. In such cases, the BiK should be reported as soon as possible in the remaining pay periods for that tax year. Earlier submissions do not need to be amended, provided the BiK is reported throughout the remainder of the relevant tax year. Any changes, however, should be actioned in real time. Key Points from the Technical Note

The technical note outlines a timeline

GLOBAL PAYROLL MAGAZINE ISSUE 12

Focus on progress , we will handle payroll.

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Let our experts take the strain. We combine our wealth of national and international experience with the latest technology to handle payroll for workforces of all sizes – we’re flexible, scalable and meticulous. Most importantly, we deliver accurately and on time.

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Supported by

The Great Transformation Guide

ADP has authored a series of thought-provoking articles exploring the relationship between organisations and payroll. From the HR and payroll challenges of global expansion to the rich resources of payroll data; from the payroll skills shortage to the true cost of inefficient processes; this series helps to identify and solve obstacles and appreciate and embrace the ever-greater asset payroll can become to companies navigating a treacherous business landscape.

Are you optimising your partnerships with in- country payroll vendors?

Why is payroll so vital during international growth?

Finding the real cost of payroll and making it more cost- efficient

Safeguarding payroll data - critical

How the payroll skills shortage could impact

Inefficient payroll

Global expansion - HR and payroll compliance challenges

The benefits of data-driven

processes: a hindrance to growth plans?

payroll for company growth

your global expansion plans

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