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ISSUE 5
“Businesses that integrate automated systems are better positioned to ensure that their payroll processes are compliant with ever- changing regulations and secure against cyberattacks.”
requirements on how personal data, such as payroll information, is handled and stored. In the United States, businesses must navigate a mix of federal, state and local payroll regulations. As a company grows and expands into new regions, the complexity will continue to increase, making it challenging to manage compliance manually. With automation, businesses are empowered to simplify global payroll processes. Automation allows a company to continuously update payroll systems to reflect the latest regulatory changes. The right automated tools offer the ability to track tax rates, monitor changes in labor laws, and see social security contributions in real time. These tools help companies keep accurate payroll calculations, which helps to minimize the risk of human error and saves time. The Cybersecurity Landscape in Payroll Systems Today’s world is digital, and the global workforce will continue to drive this evolution. This is why the need for cybersecurity in payroll systems has never been more critical. Payroll data contains some of the most classified information a company can hold. A single database houses employee names, social security numbers, bank account details and salaries. This makes it a prime target for cybercriminals, who can use this data for identity theft, fraud or ransomware attacks.
Understanding Global Payroll Compliance Challenges
Managing payroll has never been just a matter of paying employees on time. And when you factor in a global workforce, managing payroll becomes even more complex. With global workforces, businesses need to understand each country or region in which they operate, as each has its own rules governing minimum wages, taxes, social contributions and reporting requirements. Staying compliant requires the monitoring of these regulations, and an in-depth understanding of the consequences of non-compliance, which can be severe. If not compliant, businesses can face fines, penalties, reputational damage or lack of employee trust. Let’s look at Europe as an example. Companies must comply with the General Data Protection Regulation (GDPR). The GDPR places strict
Manual payroll processes can introduce vulnerabilities within a system. They
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