04:05 Issue 5

04:05 GLOBAL PAYROLL

electing

ISSUE 5 I 2024

CANADIAN FIASCO ConseneLes nobis es eaque pra ne que dictatumquae aut lam et faciis maiores.

TRICK OR TREAT! Things that go bump in global payroll

U.S. PRACTITIONER’S PERSPECTIVE: The year-end cybersecurity challenge

EQUAL OPPORTUNITIES The role of payroll in supporting DEI initiatives

CAKE FIGHT! The GPA’s Mel Pizzey spoke her mind on LinkedIn and things got messy!

GLOBAL PAYROLL MAGAZINE

Foreword

One of the privileges of being at the helm of the GPA is the ability to spend time with some of the people I admire most in our global payroll community at the events we run around the world. We closed out September in Sweden, celebrating payroll and accounts, and began October with the GPA Payroll Symposium in London. Further symposia in Dubai, South Africa and Dublin will soon follow and I am so excited to share space, time and ideas with old friends and new. We are able to invite global payroll professionals to these events free of charge thanks to the support of our sponsors. I’m grateful that their generosity allows us to bring people together. It’s a fantastic reminder of how closely connected we all are by our values and passion for payroll and our desire to continue to learn and grow, despite the miles between us.

It’s Cybersecurity Awareness Month and our expert contributors are here with articles to keep you aware and prepared . This month will also see many of us mark Halloween and, in honour of the spooky season, some of our writers have turned their thoughts to the chilling side of payroll. Ayşe Nazmiye Uça shares her Implementation Horror Story and is refreshingly frank about the lessons she learned. While in her cover story Trick or Treat ! Zennie Sjölund entertainingly walks us through the things that go bump in the working day and helps us avoid our industry’s spooks and ghouls. Halloween can be a messy time and the GPA’s feature story this month involves a Cake Fight I inadvertently started on LinkedIn when I shared some frank thoughts of my own. I’ll be very interested to see how many of you are with me on this one. The GPA team is firmly on the side of keeping cake behind closed doors, we’d love to see your cake take in the comments!

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 Trick or treat!

Halloween is approaching, but real-world uncertainties provide enough nightmares

12 V4 minimum wages Wage changes in the Czech Republic 18 The role of payroll in

supporting DEI initiatives Diversity, Equity, and Inclusion (DEI) are foundational principles that ensure all employees have equal opportunities

24 Cake Fight!

The GPA’s CEO Melanie Pizzey made a potentially controversial but necessary post to LinkedIn

28 The Complexities of multi-country payroll

Navigating diverse labour laws, tax regulations, and compliance requirements

33 The future of work How we work has undergone a radical transformation, and so must the way we pay and manage people 42 Finding remote employees in the Middle East Finding top-notch talent no longer means being confined to a 30km hiring radius 46 5 Spooky signs of a payroll compliance nightmare

In Australia, payroll compliance presents significant challenges for employers

GLOBAL PAYROLL MAGAZINE

CONTENTS 52 Payroll profile Graham Harrop and Kevin Tonner. Founders of IPPEX Global 58 U.S. Practitioner’s Perspective The year-end cybersecurity challenge 66 Compliance issues 78 GPA toolkit empowers when cyber issues attack Data compromises and breaches are accelerating at a record pace 84 Pay transparency

Regulations are on their way for employers with people in the EU 90 Global payroll compliance and cybersecurity Businesses are faced with new complexities ALSO IN THIS ISSUE 06 NEWS Interactive global payroll news 62 Diary of an HR Manager 64 GPA Training Join our experts as they take you through the process of running payrolls in different countries

Ensuring that employees are paid accurately and on time are the two fundamental roles of any system

72 An implementation horror story

Transitioning from an ageing payroll software

88 GPA Webinars

The latest global and in-country payroll topics and trends

98 Asia Briefing 101 Find a vendor

Overview on Asia news

A comprehensive list of suppliers to the global payroll industry

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MOROCCO

CANADA

Network International expands in Francophone Africa with Moroccan presence

Salary growth to outpace inflation for first time in four years

DUBAI

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

Gen Z believe they are underpaid in the workplace

OMAN

GLOBAL

ADP unveils ‘human- centric’ global HR platform Lyric

Expats banned from major construction roles

SWEDEN

GLOBAL

In a ‘world first’ grandparents will be paid to look after children

Amazon orders staff to return to the office five days a week

AUSTRALIA

SCOTLAND

From July 2025 parents on government-paid parental leave will receive superannuation

Pay rise awarded to council staff was rejected by biggest union

GLOBAL PAYROLL MAGAZINE

AUSTRALIA

NORTH AMERICA

Uber wins dispute over payroll tax assessment

Pay transparency and communication around pay is improving

NIGERIA

BAHRAIN

PTAD restores access to payroll benefits for pensioners living abroad

stc pay and LMRA partnership to streamline expatriate onboarding

Click on the interative map to view other world news

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GLOBAL PAYROLL MAGAZINE

Trick or Treat!

By Zennie Sjölund

Halloween is approaching, but real-world uncertainties provide enough nightmares. In unpredictable times, it’s crucial to lean on your knowledge and the expertise of peers. While others enjoy costumes, payroll professionals handle real- life challenges that impact people and businesses, making their role more critical than ever.

The Pandemic’s specter One such “monster” we tackled was the pandemic. During COVID, payroll professionals ensured that salaries, benefits, and support systems stayed in place, proving to be essential contributors to society. Our gift to the corporate world was survival, and that dedication didn’t stop when lockdowns ended. Today, we continue to package our work with knowledge, skills, and experience. But just as important is the “cover”—how we’re perceived. Many countries now celebrate payroll with special days, such as Payroll Appreciation Day in Sweden or

National Payroll Week in the UK. That’s fantastic! But what perception do we want for payroll? Imagine replacing cake images with payroll facts or humorous illustrations that highlight the complexity of our work. That might help us earn the recognition we deserve. A Ghost: The Shadow Economy A “ghost” rising on the horizon is the shadow economy. Financial crime— money laundering, corruption, fraud, and labor market criminality—poses a threat at every level and puts the risk-based approach of payroll in the spotlight. With the EU rolling out updated anti-money laundering and

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corruption directives, including the new Regulation 2024/1624, compliance will become even more critical for payroll professionals. It’s important for payroll professionals to avoid becoming unwitting enablers of financial crime. In this context, an “enabler” is a person or entity that unknowingly provides the means for others to commit or conceal illegal activities. If you’re not aware of the risks, you could unknowingly play a part. The key is to stay informed and learn from one another to prevent history from repeating itself. Spooky Behavior A recent survey in Sweden shows that payroll professionals face significant challenges in managing time, mainly due to the ever-present “spook” of tight deadlines. Many organisations still struggle to gather the necessary data to process payroll on time. While some have found their “ghostbusters” in better systems, many have yet to eliminate this “spooky” behavior. Change often comes more easily when new regulations require improved routines. Although new regulations often bring extra work—especially at first—they can also be “Payroll’s Best Friend” (PBF), providing structure and support when the specter of missed deadlines threatens to haunt us. Cyber Demons Technology is a powerful positive enabler in payroll, especially through digitalization. However, automation

“A “ghost” rising on the horizon is the shadow economy. Financial crime— money laundering, corruption, fraud, and labor market criminality—poses a threat at every level and puts the risk- based approach of payroll in the spotlight.” The upcoming AI Act, which could have an impact similar to GDPR, introduces new regulations that will affect how AI is used in payroll. To keep these cyber demons at bay, it will become increasingly important to verify sources and ensure data integrity, particularly when it comes to information sent by unknown senders. Artificial Intelligence (AI) is more than just hype—it’s quickly becoming as natural a part of the profession as payroll systems themselves. is only beneficial when combined with strong controls to ensure quality and security. The “cyber demons” payroll professionals face come in many forms, from cyberattacks to misinformation.

GLOBAL PAYROLL MAGAZINE

“A 5,000-year-old clay tablet from the ancient city of Uruk, in Mesopotamia, records compensation—paid not in money, but in beer!”

The Long History of Payroll As the world prepares for the festive season—whether Halloween, Christmas, Eid al-Fitr, Diwali, or Chanukkah—it’s worth noting that all of these celebrations are steeped in history. Payroll, too, has a long history. A 5,000-year-old clay tablet from the ancient city of Uruk, in Mesopotamia, records compensation—paid not in money, but in beer! Today, that might seem a bit spooky.

While Halloween might be a time for tricks and treats, in the payroll world, our expertise and dedication ensure that the real monsters—uncertainty, financial crime, and compliance challenges—are kept at bay. We might not wear costumes or hand out candy, but the impact we make is nothing short of heroic. As others enjoy spooky stories, payroll professionals can take pride in knowing that we’re the ones truly keeping the nightmares away.

Author: Zennie Sjölund

Zennie Sjölund is a well-known and highly respected figure in Global Payroll. She is the Sweden-based Divisional Director Payroll of Srf konsulterna - the association of Swedish Accounting and Payroll - and has 20 years of payroll industry experience with a special focus on payroll intelligence and trendspotting.

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By Klára Cowan How V4 countries approach minimu guaranteed wage

Changes to the guaranteed and

Recently, there has been a significant change in the labor laws in the Czech Republic. An amendment to the Labor Code came into effect on August 1 of this year, which, among other things, abolished the system of guaranteed wages in the private sector. minimum wage, which took place in the Czech Republic in July 2024, are intended to ensure an adequate minimum wage for the entire EU. This can help close the income gap between men and women, but it carries the risk of higher costs.

Only the minimum monthly wage will remain, which is 18,900 CZK this year, and should rise to 20,600 CZK next year. The average salary in Czechia has now reached CZK 43,941 per month. We can find out whether the system of guaranteed wages is a standard when we look, for example, at the situation in the other V4 countries. The System of Guaranteed Wages applies only in Slovakia. In Poland, a similar legal arrangement operates as the one now in the Czech Republic,

GLOBAL PAYROLL MAGAZINE

s um and es

Hungary does not have a guaranteed wage for various professions at all.

“In Slovakia, the Minimum Wage Act defines a guaranteed wage based on the demands of the given profession for individual positions.”

In Slovakia, the Minimum Wage Act defines a guaranteed wage based on the demands of the given profession for individual positions. Given that the guaranteed wages are not specifically stated for individual positions, it is necessary to learn the individual salary classes that are given by law.

For example, a workplace defined as the first level of work difficulty means

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the performance of auxiliary, preparatory or handling work according to precise procedures and instructions, binding manuals or orders from superiors. By contrast, work at the sixth level of difficulty involves solving tasks in an unusual way with unspecified outputs and a high degree of responsibility for damage that entails extensive social consequences. This applies, for example, to healthcare or the areas of managing complex systems. This means that the Slovak law does not specify exactly how much people can earn as a minimum within the guaranteed wage, however, the employer must follow the salary tables when determining their wages. The minimum

monthly wage in Slovakia is €750.00, the average monthly wage is €1,430.00.

There is no such thing as a guaranteed wage in Poland. Only certain professions in the public sector, such as teachers, health workers, budget employees, and others have a guaranteed wage with a set minimum. This wage differs from the official minimum applied to private companies in all sectors. Employees of the public sphere also include judges, prosecutors, soldiers, policemen, professional firefighters, prison service workers, etc.

In the case of teachers, the minimum rates of the basic monthly salary in

“What constitutes a reasonable minimum wage in one country may not be sustainable in another and may instead lead to economic imbalances.”

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Poland are different. It is PLN 5,057 for a beginner teacher and PLN 5,915 for a certified qualified teacher. In this way, it matches the legal regulation that was recently approved in the Czech Republic. The minimum monthly wage is PLN 4,300, the average monthly wage is PLN 8,047.37. A special feature of Hungarian labor law is the dual minimum wage system. This is a minimum wage for people with basic education and a guaranteed wage for skilled workers. Full-time workers must be paid the minimum wage or the guaranteed minimum wage for skilled workers. There is no other guaranteed wage system in Hungary that is tied to specific

professions. The minimum monthly salary is HUF 266,800. The guaranteed monthly minimum wage for qualified workers is HUF 326,000. The average monthly salary is HUF 645,300. As can be seen, the system of guaranteed wages is not consistent in the Visegrad countries. The Czech Republic has the second highest average wage and at the same time the second highest minimum wage among member countries. The first place in both cases belongs to Poland. The changes that took place in the Czech legislation during the summer (i.e. the abolition of the guaranteed wage in the private sector and a

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new mechanism for the valorization of the minimum wage, which should compensate for the mentioned abolition), are based on the Directive in the European Union. It has a clear objective: to ensure an adequate minimum wage for all workers in the EU, which should contribute to reducing working poverty, promote fair pay and strengthen collective bargaining. The implementation of these standards can bring many benefits, such as increasing economic stability and improving income equality. An important aspect is also the directive’s potential to contribute to equalizing pay between men and women, as women often work in low-income sectors and are thus more vulnerable to wage inequality. On the other hand, there are naturally also disadvantages in the form of increased labor costs, especially for small and medium-sized enterprises, which can lead to a reduction in employment or the transfer of production to other countries. The uniform nature of the directive, which is applicable for all EU Member States, may not factor in the significant economic differences between them. What constitutes a reasonable minimum wage in one country may not be sustainable in another and may instead lead to economic imbalances. If businesses pass on increased labor costs to consumers, the prices of goods and services may rise, which will naturally lead to inflation. This could subsequently reduce the purchasing

power of the very workers that the directive is supposed to protect.

Implementation of this directive will be challenging. It may increase the pressure on public finances in countries with significant social programs, which should not endanger our CEE region. Overall, this directive represents a significant step towards ensuring fair wages and reducing poverty, but its implementation is a delicate balancing act where the benefits must outweigh the potential economic risks, which may ultimately affect everyone from businesses to their employees. However, only the future can reveal how the whole situation will develop and what positive or negative impacts it will bring.

Author: Klára Cowan

Klára Cowan, Group Payroll Director for ASB Group , is a highly skilled professional who helps clients set up payroll processes, using benefits and issues related to HR. She is also responsible for ASB Group’s business development. Klára is a passionate advocate for the payroll industry, believing it deserves greater recognition for its vital role in managing sensitive information and personal data.

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The Role of Payroll in Supporting DEI Initiatives

By Suman Rai

Diversity, Equity, and Inclusion (DEI) are foundational principles that ensure all employees, regardless of their background, have equal opportunities and are treated with impartiality. However, with the statistics in front of us, this may still seem somewhat fanciful.

World Economic Forum’s Global Gender Gap Report 2024 , highlights the LinkedIn data that shows even in 2024, women’s representation in the workforce continues to remain lower than men across almost all industries and economies. Women constitute 42% of the global workforce and hold 31.7% of senior leadership positions. A report by EDGE , a global assessment certification standard for DEI mentions that neither the UK nor the US has hiring quotas for people with disabilities or gender quotas on company boards. The Office for National Statistics points out that from 2012 to 2022, Black, African, Caribbean, or Black British employees in the UK have consistently earned a median gross hourly pay of £13.53, which is lower than the £14.35 earned by White employees. At the same time, a new

working paper from the International Labour Organization reveals that individuals with disabilities earn 12% less per hour than other employees. The striking pay disparity reinforces the necessity of DEI initiatives in today’s workplace. Appreciating the diverse strengths of individuals cultivates a flourishing, innovative workplace and nurtures a positive organisational culture. Companies that prioritise DEI are better positioned to attract top talent, understand diverse customer needs, and achieve sustainable growth. This article will examine the impact of DEI in the workplace along with strategies and best practices for fostering a DEI-inclusive environment.

GLOBAL PAYROLL MAGAZINE

Laws and Regulations Supporting Pay Equity In today’s world, many organisations around the globe are making DEI initiatives a priority. However, the legislative contexts and DEI efforts differ between countries. It is interesting to note that, though some countries do not have established regulatory frameworks, the practise of DEI is encouraged in several stipulations. For instance, Singapore does not have a regulatory framework targeting DEI issues, but

the Singapore Exchange (SGX) has listed D&I stipulations that direct the maintenance of a board diversity policy addressing gender, skills and experience, and any other relevant aspects of diversity. The same EDGE report reveals that countries such as France, Germany, Austria, and Belgium prohibit the collection of personal data on race and ethnicity. In contrast, countries such as the UK, US, and Australia permit employers to gather such information.

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Regardless of legal mandates, it is crucial to integrate DEI initiatives within HR and payroll policies. Here are several strategies that payroll professionals and HR experts can adopt to foster a supportive environment, ultimately contributing to the company’s growth: Effective Strategies to Adopt in Payroll to achieve DEI Goals 1. Conduct Pay Equity Assessments Conducting pay equity assessments is a vital aspect of promoting DEI within an organisation. This analysis involves a thorough comparison of the salaries of employees performing similar roles to identify and rectify any disparities based on gender, race, disability, ethnicity, or other irrelevant characteristics.

increases and communicate them transparently to employees through various channels to ensure comprehensive awareness. Buffer , a social media account management company, publishes all employee salaries on their website, along with the formula used to calculate them in order to ensure that all employees feel valued and fairly compensated. 4.Incorporate Inclusive Policies Such inclusivity must also be reflected through the policies of the company, catering to the diverse needs and well-being of employees from various backgrounds. For instance, parental leave for both primary and secondary caregivers, ensuring all parents can take necessary time off to take care of their newborns. Additionally, providing flexible leave “Appreciating the diverse cultivates a flourishing, in nurtures a positive organi

2.Benchmarking Against DEI Best Practices

The equity assessments will not only help in maintaining internal equity but also stand as benchmarking against external companies within the same industry. Following DEI practices will enhance a company’s reputation, and such companies are often viewed more favourably by potential employees, customers, and stakeholders. 3.Ensure Transparent Pay Practices The practice of pay secrecy is on its last legs. According to a report by Business.com , 70% of workers believe that pay transparency can reduce gender and ethnic pay gaps. Organisations should establish clear policies and criteria for salary

different region and retain them for the growth of the company. Nationality non-discrimination in employment is a crucial principle upheld by countries like the UK, US, Australia, Canada, and many others. However, Austria has yet to embrace this practice. 6.Implement Comprehensive DEI Training Programs The promotion of diversity and inclusivity should not be a one- time task. Continuous training for managers and supervisors on unconscious bias, the use of inclusive language and practices further empowers HR and payroll professionals to champion diversity, ultimately driving the success of the organisation. 7.Promote Equal Access to Development Opportunities All employees, regardless of their background, must have access to training, mentorship, and career advancement programs. Organisations can identify and address any disparities in access by utilising payroll data. This proactive approach will demonstrate the organisation’s commitment to equity and inclusion. According to the EDGE report, Countries such as China, Indonesia, and Vietnam lack LGBTQ+ employment protections, while the UK, US, Thailand, and Germany enforce these non-discrimination practices, making them more favourable work destinations for the LGBTQ+ community.

e strengths of individuals nnovative workplace and nisational culture. ”

options to recognise significant cultural and religious practices and having infrastructure for people with disabilities will also help to support the broader goals of DEI. The EDGE report shows that nations such as the UK, US, Canada, China, Spain and many others exercise disability non-discrimination practices in employment.

5.Promote Diversity in Hiring Practices Payroll professionals and HR

departments must join hands in addressing disparities, crafting unbiased job descriptions, and ensuring diverse interview panels. Inclusive payroll policies, such as offering relocation assistance or flexible work location for a person with a disability can also work as a tool to attract a broader talent pool from

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8.Encouraging Inclusive Leadership Encouraging inclusive leadership is also essential for embedding DEI principles within the organisational policy and culture. HR and payroll departments can support this by developing leadership training programs, emphasising the importance of diversity and inclusion, driving both employee engagement and business success. Conclusion The integration of DEI initiatives within HR and payroll practices is a strategic decision that drives organisational success. With pay equity assessments, transparent pay practices, and diversity in hiring, companies can create a more inclusive workplace. By embracing DEI principles, companies will not only enhance employee satisfaction and retention rates but also uphold themselves as an inclusive place to work in the global competitive market. As Pat Wadors insightfully states, “When we listen and celebrate what is both common and different, we become

Author: Suman Rai

Suman Rai is an accomplished professional specializing in

Global Payroll Compliance. Currently serving as a Business Consultant at Akrivia Automations Private Limited , she focuses on statutory compliance and payroll regulations across multiple countries. With extensive experience in navigating complex legal frameworks, Suman provides expert guidance to organizations, ensuring adherence to local and international payroll laws. She develops tailored compliance strategies, leveraging her analytical skills to identify risks and implement effective solutions, and collaborates with cross-functional teams to promote regulatory adherence.

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GLOBAL PAYROLL MAGAZINE

Last month, in the wake of National Payroll Week and some frustration over a familiar foe raising its floury head again, the GPA’s CEO Melanie Pizzey made a potentially controversial but necessary post to LinkedIn . Annnd she accidentally started a cake fight! Cake Fight!

We’ve included the post in full here so you can contribute to the conversation - there were some interesting responses and we’d love to hear your take - but also so we can all

learn that just short of 99% love working in payroll.

We could vocalise this love, share pictures of worldwide travel, of a

promotion being celebrated, of awards ceremonies, international conferences and symposia, stories of remarkable projects people have contributed to, the transformations they have led, the new talent they have welcomed and the endless, often unremarked upon, wins that payroll people achieve every single day. But instead, social media feeds are choked with snapshots of cake. Cake, as Mel herself noted, is a splendid thing and the GPA is firmly in favour of unlimited supplies. But it is not a prestigious symbol to share. In the UK, even the WI - a haven for skilled home bakers and handicrafters and the subject of the delightful film Calander Girls - chose to distance themselves from their cake-centric ‘Jam and Jerusalem’ image. Why then is it such

begin to think about a better way forward. National Payroll Week is a fantastic opportunity to bring payroll professionals centre stage, to showcase the myriad benefits of a career in payroll and to celebrate our individual and collective achievements. If we want to attract a new generation into the industry we must be aspirational. For a recent GPA/Safeguard survey we took a deep dive into the perspectives of global payroll professionals. You can learn more about the results in our white paper Payroll as a Career: Insights from Senior Payroll Professionals ; they were truly heartening. A significant majority of our respondents have been working in payroll for over 10 years (nearly 50% for more than 20) and it was wonderful to

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a big ask for a community of talented, powerful, highly-skilled professionals to do the same? Perhaps we should commit to bookmarking images of real payroll achievements and landmark moments for the next 11 months so we have some uplifting and inspiring memories to share when National Payroll Week rolls around again. We all have such

busy lives that it’s easy to let the wins pass us by, this could be a valuable way to stop and take stock of how far we have come. Then, in 2025, we can bring those shining moments into the spotlight and show the wider world the payroll industry at its very best. In the spirit of unity and reflecting the borderless nature of contemporary working life, since National Payroll

Mel’s LinkedIn post:

“National Payroll Week was a great succe now the dust has settled I want to bring u rant about and may solely be a bugbear o

Should we really be seen celebrating payr celebrating the payroll industry were back

“Should party food really represent the ha more people to join the payroll industry, w professionals do and the valuable informa understand that payroll is not just pushing Global Mobility, procurement, and so man “Shouldn’t we be celebrating the industry professional everyone is? Shouldn’t we be challenges or different skills you have over we most enjoy about working in payroll, a

“When I visit different payroll associations when you are celebrating payroll? Why is

“By all means, let’s celebrate with all the c to treat our teams and colleagues to. But… Everything is about perception and how w joining it.

“So, what’s the verdict? Should I just chill o

GLOBAL PAYROLL MAGAZINE

Week centres individual countries, from 2025 the GPA will do our part to ensure that we can all come together for one big celebration too. Some of you have already guessed that the title of our magazine was a hint at things to come. 04:05 or May the 4th (sorry America) is the date to circle on your calendars: Global Payroll Day. Let’s start making plans, global payroll professionals!

And if the old guard is still muttering resentfully about change? Let them eat cake! Hand them a reassuringly large slice, promise them that there will always be baked goods behind the scenes, show them some more constructive things to post and help them become part of that change so we can all do better next year.

ess and it was fantastic to see so many people celebrating the payroll industry. But up a topic which might be slightly controversial. I know it is something that I regularly of mine. You might think, Mel you need to chill out. The question I have is:

roll with cakes and food like pizzas? This year in particular the posts of cakes and food k with a vengeance on LinkedIn.

ard work that payroll professionals deal with every single day? We all want we want to be taken more seriously, for the C-suite to take notice of what payroll ation and data they can provide. The goal is surely for other departments to g a button. Payroll is more than that. It touches, HR, Finance, Pensions, Benefits, ny more departments. by showing everyone how dynamic and hard-working, how multi-skilled and sharing how we chose a career in payroll why we stay working in payroll, or what rcome and perfected all while working in payroll? We could showcase all the things about being part of the payroll community and inspiring people to join the industry.

s in other countries I am repeatedly asked, what is it about all the cake you have there SO much cake? And, honestly, I struggle to explain the connection.

cake we like. I am firmly in favour of cake and pizza and anything else we want …can the pictures and posts we share be about something more substantial? we are promoting the payroll industry to those in it, outside it and those thinking of

out, or do you think it’s time to make a change, too?”

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Navigating the Co Multi-Country Pay

By Abhinav Sinha

Imagine this: A multinational financial services company with over 10,000+ employees in 10 countries managing complex payroll challenges.

They navigate diverse labour laws, tax regulations, and compliance requirements across multiple systems and currencies. This is a common reality for many global businesses, leading to significant operational challenges and risks. The High Stakes of Payroll Errors Mistakes in multi-country payroll have serious consequences. Non- compliance with local labour laws can result in hefty fines, legal disputes, and reputational damage. Inaccurate

payroll calculations can harm employee morale and productivity. While late or incorrect transactions are often the top cause of payroll errors, payroll organisations also face challenges in measuring and monitoring these issues. The Challenges of Multi-Country Payroll Multi-Vendor Management: As firms expand globally, they either add local payroll vendors or continue with the existing incumbent providers

GLOBAL PAYROLL MAGAZINE

omplexities of yroll

“The end of payroll software life is a

in each region. This approach leads to significant complexity due to cumbersome coordination across different systems and vendors, along with manual intervention in reporting and compliance. Missing Single Source of Truth for Payroll: Global CXOs are often late to the party when it comes to information. Non-availability of a single source of truth for payroll at the central level leads to fragmented data and inconsistent reporting.

major blow for any organization. While obsolescence is a natural part of the software lifecycle, it’s becoming a more frequent challenge for organisations today. ”

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“Imagine rolling out new features and updates quickly. This is crucial for ensuring payroll systems align with evolving tax and social security regulations.”

Overcoming the Challenges To navigate the complexities of multi- country payroll, organisations must adopt a strategic approach. Here are some key considerations: 1. Choose the Right Payroll Solution: A technology-backed multi- country payroll solution provides a centralised, software-driven system for efficient, compliant, and unified payroll management across countries. These solutions leverage advanced technology to automate processes, ensuring consistency and accuracy while handling various tax laws, labour regulations, and currencies.

Redundancies & Duplication of Resources: Multi-country payroll often includes several mini payroll organisations, increasing personnel costs and complexity. These regional teams typically operate independently, complicating the implementation of a unified strategy. Data Security and Privacy: It is ironic that despite focusing on cybersecurity, many companies still take unnecessary risks attracting cyber-attacks, malware, and ransomware. Payroll remains especially vulnerable due to ongoing reliance on outdated legacy systems. Payroll Software End of Life: The end of payroll software life is a major blow for any organization. While obsolescence is a natural part of the software lifecycle, it’s becoming a more frequent challenge for organisations today. Varying Regulations: Each country has its unique labour laws, tax regulations, and compliance requirements. Keeping up with these changes can be a daunting task. Additionally, the cost of delivering payroll in new locations rises significantly, requiring companies to invest heavily in technology and process efficiencies.

2. Harmonise your Payroll Processes: Process standardization is key to a successful

multi-country payroll system. It harmonizes payroll operations across regions, reducing discrepancies, inefficiencies,

and compliance risks. By aligning processes globally, organisations ensure consistent payroll execution, streamline reporting, and simplify management across diverse jurisdictions.

GLOBAL PAYROLL MAGAZINE

country payroll. While automation eliminates manual tasks and minimizes errors, integration connects payroll systems with HR, finance, and time-tracking tools for seamless data flow. This ensures payroll operations are accurate, efficient, and consistent, streamlining complex payroll across regions for timely and compliant processing. 5. Ensure Data Security: Implement strong security measures to protect employee data and comply with data privacy regulations. Role of Technology in Multi-Country Payroll Technology is key in simplifying multi-country payroll. Advances like automation, AI, ML, RPA, and chatbots have revolutionized payroll solutions. In 2024, cloud-based payroll leads global solutions technology, offering instant data access, seamless integration with HR and finance systems, and automatic compliance updates. A payroll tech solution built on a cloud- native architecture and a proprietary platform enhances scalability. It ensures smooth and efficient operations as your company grows, leveraging the cloud’s benefits for effortless expansion. Benefits of a Proprietary Platform in the Context of Multi-country Payroll When applied to a proprietary platform, where a single entity controls the architecture, technology, and service delivery, several key benefits emerge:

3. Target Operation Model: A fit- for-purpose operating model is crucial for multi-country payroll. The right people, team, and training ensure smooth management of local laws, tax regulations, currency complexities, and cultural differences. Trained teams boost efficiency by minimizing errors and enabling seamless global payroll operations. 4. Automate & Integration Where Possible: Automation and integration are essential for multi-

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ISSUE 5

Increased Agility: Imagine rolling out new features and updates quickly. This is crucial for ensuring payroll systems align with evolving tax and social security regulations. A proprietary cloud-native platform enables rapid payroll feature deployment, quickly adapting to evolving client and business needs. Improved Scalability: The system efficiently handles any workload, from a few new hires to thousands, scaling seamlessly with your company’s growth. Enhanced Resilience: Unexpected disruptions happen, but with strong fault tolerance and disaster recovery, your payroll system stays secure and operational. Improved Developer Productivity: Faster development and deployment cycles ensure continuous system improvements. This enhances functionality and efficiency, allowing the system to meet evolving payroll requirements, such as policy changes to create new pay elements or updates to the GL file for new finance module adaptations. Looking Ahead: The Future of Payroll As organisations expand their global footprint, managing payroll across multiple jurisdictions becomes increasingly complex. However, with the right tools, strategies, and expert support, businesses can streamline payroll operations, ensure compliance,

and reduce errors, enhancing employee experience and supporting global growth. To thrive in the future of payroll, companies must focus on efficiency, accuracy, and scalability. Modern payroll systems are no longer just about calculating salaries—they’re a strategic business function that can significantly impact organizational success. Thus, navigating a multi- country payroll may seem daunting but it’s a worthwhile endeavour.

Author: Abhinav Sinha Abhinav is the Country Sales Head, Ramco Systems , ANZ. He comes with

close to two decades of experience in the Software and IT Services industry. Passionate about SaaS solutions, Abhinav believes this to be the best timing to be in the industry as Ramco is uniquely positioned at a pivotal time for the HR and payroll solutions business. His deep knowledge in the industry and strong leadership are driving growth and innovation in the region’s HR tech landscape.

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A boundary-free working world

How we work has undergone a radical transformation, and so must the way we pay and manage people. Geographical boundaries are no longer a barrier to employment, allowing organisations to cherry-pick talent from a dynamic and diverse pool. While flexibility is an absolute necessity to facilitate such agile hiring, robust and compliant payroll processes provide a backbone to support these new and bold moves. Human Capital Management (HCM) allows organisations to manage and optimise their richest resource: human capital. Its processes, strategies and technologies support and manage the entire employee lifecycle. Additionally, it enhances the employee experience by providing constructive and regular feedback, conducting performance evaluations, establishing goals, and offering recognition and rewards that reflect staff achievements. Key components of HCM during the employee lifecycle: A boundary-free working world How we work has undergone a radical transformation, and so must the way we pay and manage people. Geographical boundaries are no longer a barrier to employment, allowing organisations to cherry-pick talent from a dynamic and diverse pool. While flexibility is an absolute necessity to facilitate such agile hiring, robust and compliant payroll processes provide a backbone to support these new and bold moves. Human Capital Management (HCM) allows organisations to manage and optimise their richest resource: human capital. Its processes, strategies and technologies support and manage the entire employee lifecycle. Additionally, it enhances the employee experience by providing constructive and regular feedback, conducting performance evaluations, establishing goals, and offering recognition and rewards that reflect staff achievements.

Key components of HCM during the employee lifecycle:

Time, attendance and payroll

Reporting and analytics

Core HR - personnel administration

Recruitment and hiring

Time, attendance and payroll

Reporting and analytics

Core HR - personnel administration Workforce management

Recruitment and hiring Onboarding and training

Benefits administration

Workforce management

Onboarding and training

Benefits administration

Global Payroll + HCM = Future of Work

GLOBAL PAYROLL MAGAZINE

The intersection of global payroll and HCM The intersection of global payroll and HCM New platforms that unite HCM and payroll can aggregate information, bringing hiring, people management, data security and payment processes together. They manage currency conversion and support multi-country payroll processing. Such innovation permits the swift, safe onboarding that forward-thinking companies seek, granting them the freedom to evolve a truly global workforce of accurately paid and happy employees and to utilise that loyal resource to succeed and grow. The global HCM and payroll market size New platforms that unite HCM and payroll can aggregate information, bringing hiring, people management, data security and payment processes together. They manage currency conversion and support multi-country payroll processing. Such innovation permits the swift, safe onboarding that forward-thinking companies seek, granting them the freedom to evolve a truly global workforce of accurately paid and happy employees and to utilise that loyal resource to succeed and grow.

Similarly, managing payroll involves more than just ensuring employees get paid. Payroll teams are responsible for all aspects of employee compensation administration and related financial processes, including wages, salaries, deductions and bonuses. Whether payroll is managed in-house, via outsourcing or through a partnership with an employer of record, global payroll professionals ensure that employees are paid accurately and on time, every single time. They also play a crucial role in keeping up with the ever-evolving legislation and regulations for every region in which employees are based. The ever-growing appeal of flexible and remote working for employees, sourcing talent from an international candidate base for employers, engaging contractors or incentivising workers with flexible working options makes an The ever-growing appeal of flexible and remote working for employees, sourcing talent from an international candidate base for employers, engaging contractors or incentivising workers with flexible working options makes an unimpeachable payroll function critical. Though they represent different aspects of workforce management, there is a powerful intersection between payroll and HCM. New technologies allow us to tap into the stream of payroll data for broader workforce insights and real-time insights, opening up new possibilities for an interplay between the functions that could be key to keeping in step with the fast-paced changes of the new world of work. opening up new possibilities for an interplay between the functions that could be key to keeping in step with the fast-paced changes of the new world of work. Global Payroll + HCM = Future of Work But, above all, HCM is a holistic function that can and should adapt to the changing needs of employees and the wider organisation to bring out the best in both. Similarly, managing payroll involves more than just ensuring employees get paid. Payroll teams are responsible for all aspects of employee compensation administration and related financial processes, including wages, salaries, deductions and bonuses. Whether payroll is managed in-house, via outsourcing or through a partnership with an employer of record, global payroll professionals ensure that employees are paid accurately and on time, every single time. They also play a crucial role in keeping up with the ever-evolving legislation and regulations for every region in which employees are based. But, above all, HCM is a holistic function that can and should adapt to the changing needs of employees and the wider organisation to bring out the best in both. unimpeachable payroll function critical. Though they represent different aspects of workforce management, there is a powerful intersection between payroll and HCM. New technologies allow us to tap into the stream of payroll data for broader workforce insights and real-time insights,

The global HCM and payroll market size

$29,477.65 million 2031 $29,477.65 million 2031

$16,380 million 2021 $16,380 million 2021

6% CAGR

projected

6% CAGR

projected

Source: HCM and Payroll Market Report

Source: HCM and Payroll Market Report The increasing size and complexity of the market reflect the growing need for effective payroll management. Payroll professionals, who have long been tasked with managing multiple entities across different regions; however, our new working landscape, and the uptick in remote working, now face a new challenge. 3 management. Payroll professionals, who have long been tasked with managing multiple entities across different regions; however, our new working landscape, and the uptick in remote working, now face a new challenge. The increasing size and complexity of the market reflect the growing need for effective payroll

Global Payroll + HCM = Future of Work

04:05

Moving forward with open minds and agility

Agility is a word we return to whenever we discuss the contemporary world of work, and a key area where today’s employers need to be flexible is allowing staff some freedom to determine where and how they work. The pandemic caused a seismic shift in mindsets and working practices, and while we are all trying to needs and experience, integrating HCM and payroll and allowing new technologies and tools to underpin and unite HCM and global payroll processes for compliant growth. Through new tech payroll can become a more strategic function, driving change and earning its seat at the table. find a better work-life balance for newer generations of workers, flexible working is a requirement, not a request. Deloitte’s Gen Z and Millennial Survey revealed that 77% of Gen Z employees and 75% of millennials holding remote or hybrid roles now would get a new job if their employer imposed a return to office mandate. Effective global workforce management can be achieved through that magic word agility. Being open to new ways of working and paying, seeing and responding to the intersection of employee

Employee experience Organisations will be empowered with a real-time view of their payroll and people across multiple countries and regions, and the ability to make big decisions backed up by reliable information. The rise of remote working means that the instance of a single employee choosing to work from their home country is more likely than it has ever been. This shift can lead to new and unforeseen compliance obligations and challenges, driving organisations to seek external support for managing payroll for their global workforce. The myriad gains payroll and HR data can bring will only going to grow as advances in data analytics, through AI, open the door to predictive analytics reporting with trend analysis. Employee engagement is at the heart of productivity, and we are beginning to understand the value of prioritising employee experience. In its State of the Global Workplace report for 2024, Gallup found that low employee engagement had led to an $8.9 trillion global GDP loss. Its research revealed that 77% of those surveyed were either not engaged or actively disengaged with their work and workplace. A worker’s perception of their worth within an organisation directly impacts productivity and retention. When we have the structures in place to treat employees as individuals and support their unique needs and aspirations, we take huge strides in building a loyal and resilient workforce. Central to this is payroll. We know it only takes two payroll errors for an employee to consider finding a new job. By supporting businesses to optimise their payment processes, we enhance the employee experience. Emerging platforms that integrate HCM and payroll play a pivotal role in consolidating information, bringing together hiring, people management, data security and payment processes. They manage currency conversion and support multi-country payroll processing. Such innovation facilitates the rapid, secure onboarding that progressive companies strive for, enabling them to build a truly global workforce of accurately paid and satisfied employees, and to leverage this committed resource for success and growth. Being open-minded about technology is one easy way to make a dynamic change for the better. In its 2024 Global Human Capital Trends report, Deloitte found that 73% of respondents recognised the importance of aligning human capabilities with technological advancements, yet only 9% reported progress with striking that balance. With employees seeking new pay solutions and a radical overhaul of the way the traditional working week looks, HCM and payroll tech are likely to become our best safety nets.

c ompliance, c ompliance, c ompliance,

When we discuss payroll, we often emphasize the three Cs:

Source: Deloitte - Gen Z and Millennial Survey

The way we pay is another once-rigid area being forced to limber up. On-demand pay, or earned wage access, is an employee benefit that has grown exponentially as the cost of living has soared. With financial worries high on the list of reasons for absenteeism and mental health issues for workers, offering them the opportunity to access funds as they are earned rather than waiting for a traditional payday can pay off for employers and their workforces. intersect, it might be wise to adopt three Cs of our own: communication, communication, communication. An uninterrupted flow of data between the two, an ongoing dialogue between functions and the most powerful communication tool of all; the ability to remain open to new perspectives and solutions. When we consider the future of work and how global payroll and HCM will increasingly

Global Payroll + HCM = Future of Work

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