04:05 Issue 7

04:05 GLOBAL PAYROLL

Selecting

ISSUE 7 I 2024

AI AND PAYROLL SYNERGY: Streamlining the Holiday Season for Businesses and Staff

PAYROLL TECHNOLOGY ACROSS AFRICA Its power and limitations

TRANSFORMING HR FUNCTIONS The role of digitalisation

DECK THE HALLS WITH PAYROLL COMPLIANCE A 12-step checklist

GLOBAL PAYROLL MAGAZINE

Foreword

As the year draws closer to its end and we head into the holiday season we can hopefully look forward to exchanging professional challenges for the challenge of switching off and relaxing! This has been a remarkable year for the GPA with opportunities to share space, experiences and knowledge with friends old and new from across the global payroll community at our international events. We continue to be inspired by the thought leadership and achievements of the payroll professionals we are privileged to spend time with and can’t wait to see all the remarkable things you will do in the new year. We are proud to say that we were able to offer more opportunities for learning, sharing, networking and community growth than

ever before in 2024. A personal point of pride for me is the number of free events, payroll resources and chances to hear from industry leaders that the GPA could provide. We are at our finest as an industry when we are united and it felt great to bring so many people together this year. This magazine has been another example of unity and inspiration. It has been so nice to connect with our writers, hear new voices emerge and learn from their unique points of view. I love hearing from readers about what 04:05 means to you and I’m excited by the ideas you have for how payroll will look and how you will forge your path through it in 2025 and beyond. However you are spending your well-earned downtime, we wish you all the very best!

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 AI and payroll synergy Streamlining the holiday season for businesses and staff 14 Transforming HR functions The role of digitalisation 20 U.S. practitioner’s perspective On paid leave laws 26 Deck the halls with payroll compliance A 12-step checklist 32 Flexibility on the frontlines Why payroll needs to keep up 36 Payroll technology across Africa Its power and limitations 42 All I want for Xmas Acknowledgement, meeting deadlines, and less time spent chasing information 46 Between the lines GPA talks payroll with Annemarie Verwaaijen-Kalsbeek 54 Can money buy CEO success CEO salaries account for the largest chunk of many corporate budgets 60 New wage theft laws Australian laws set to make a major change to the way underpayments are viewed 67 Key U.S. payroll figures for 2025 A quick reference 70 Securing payroll data this holiday season Cybercriminals see this busy time as an opportunity to target payroll systems

GLOBAL PAYROLL MAGAZINE

CONTENTS

76 New Year’s resolutions for payroll 84 Preparing for the future Emerging trends in global payroll for the New Year 88 Transforming payroll into a key business enabler

ALSO IN THIS ISSUE 06 NEWS

Interactive global payroll news

80 GPA webinars The latest global and in-country payroll topics and trends 82 Diary of an HR manager 92 Forvis Mazars’ payroll news roundup News from CEE and Central Asia 96 GPA training Experts share the process of running global payrolls 98 Find a vendor A comprehensive list of suppliers to the global payroll industry

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GLOBAL

TURKEY

Papaya Global launches new suite of AI-based payroll and payments solutions

President signals that minimum wage could rise by 44% forecast inflation rate

IRELAND

AUSTRALIA

Plans to increase paid sick leave scrapped

‘Uncontroversial’ WFH compensation win has alarming implications for businesses

AUSTRALIA

KENYA

Workpay named as startup in Visa’s Africa Fintech Accelerator programme

Workers back-paid $473 million through FWO recovery

USA

SOUTH AFRICA

Rinse and Repeat: Texas Court Vacates Controversial Federal Overtime Rule

SARS prioritises PAYE compliance

USA

OMAN

Associated Press latest media outlet to cut workforce

Expatriate workforce reaches 1.8 million

GLOBAL PAYROLL MAGAZINE

SAUDI ARABIA

New wage insurance is a worker protection milestone

Bolt drivers to be classified as workers following tribunal win

GLOBAL

AUSTRALIA

Remote partners with Kota to launch global benefits solution

Former United Petroleum outlet operator faces court over false records

Click on the interactive map to view other world news

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AI AND PAYROLL SYNERGY: STREAMLINING THE HOLIDAY SEASON FOR BUSINESSES AND STAFF By Ganesh Gopalakrishnan

GLOBAL PAYROLL MAGAZINE

The festive holiday period – characterized by joy, family gatherings, and merriment – poses distinctive difficulties for payroll units. The combination of longer work hours, seasonal bonuses, and revisions in tax regulations presents a complex situation for payroll experts.

Agility at Its Best: Harnessing Real-Time Responsiveness for Payroll Success Classic payroll systems may face challenges in meeting the dynamic needs of modern workplaces, especially during busy holiday periods. Payroll teams may feel overwhelmed by fluctuating work hours, overtime, vacation requests, and bonus calculations. However, AI-powered platforms are revolutionizing the

Nevertheless, this moment presents the perfect opportunity to utilize artificial intelligence (AI) and automation in aiding payroll procedures. With the accelerated operations of payroll teams in recent years, emerging technologies are not only offering crucial support but also reshaping roles and enhancing a more human-centred experience for employees.

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industry through their ability to provide instant responses. These systems employ predictive analytics and data processing to promptly adjust to various changes, guaranteeing that employees receive accurate and timely payments, even in the most intricate circumstances. In addition to enhancing efficiency, AI is instrumental in minimizing errors by identifying discrepancies such as inconsistencies in clock-ins or deductions from payroll. Taking a proactive approach results in fewer errors and less time dedicated to making corrections, enabling payroll specialists to concentrate on more valuable activities such as strategic planning and analysing business operations. This transition of lowering compliance risks and increasing efficiency is particularly crucial amid the demanding holiday season.

Yet, such a change necessitates a shift in the organizational culture. To excel, payroll teams need to have both AI tools at their disposal and the expertise to analyse and make the most of the valuable data produced by these tools. Payroll experts in companies using AI have been able to move into more advanced positions, such as data analysis and planning the workforce. This empowerment allows payroll teams to provide insights that directly impact business decisions and boost employee satisfaction.

Revolutionizing Payroll: The Shift from Transactional to Transformational Roles

As AI advances payroll systems, the role of payroll professionals is experiencing a significant transformation from performing transactions to driving change. Routine tasks such as data entry and tax calculations are increasingly automated, allowing the payroll team to focus on more impactful responsibilities that drive the organization’s success. Payroll teams are now proficient in providing valuable advice on compensation structures, staff retention, and enhancing overall workforce efficiency.

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Beyond the Paycheck: Empathy- Driven Payroll for a Superior Employee Experience Although the impact of AI on operational efficiency is evident, its capacity to provide a human touch is equally important. An instance can be seen in the adoption of on-demand pay solutions, offering employees increased financial flexibility, a factor that carries particular significance during the holiday season when expenses typically escalate. This method not only facilitates the

financial welfare of employees but also cultivates loyalty and trust, ultimately resulting in increased retention rates. According to the International Association for Human Resource Information Management (IHRIM), companies that incorporate AI technology in their payroll operations may experience a decrease in employee turnover of around 10%. This showcases the effectiveness of blending operational efficiency with a more empathetic, employee-centred payroll approach. Towards Autonomous Payroll: The Next Frontier in Payroll Excellence AI and automation are playing a key role in advancing the autonomy of payroll processes. Contemporary AI-powered systems can effortlessly handle complex payroll computations, guarantee tax adherence, and manage regular employee queries – tasks that once required significant human input. While the move towards automation is significant, it is crucial to understand that AI is designed to complement rather than replace human capabilities. Rather, it functions to enhance human abilities. Payroll systems can maintain efficiency, adaptability, and responsiveness to the needs of employees and management by striking a balance between technology and human interaction.

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powered payroll systems can greatly boost the transformation of the payroll industry. As you and your organization gear up for the upcoming holiday season, consider this: Is your organization fully equipped to welcome the future of payroll and enrich the employee experience?

Next-Gen Payroll: A Holiday Season Revolution in Payroll As the holiday season approaches, payroll teams face the important duty of ensuring timely and accurate payments, amidst the increased complexity of year-end activities. AI and automation present an optimal solution by providing tools that reduce errors, increase efficiency, and improve overall employee contentment. The holiday season offers an opportune period to reconsider payroll, viewing it not only as a typical operational task but as a valuable strategic ally that enriches workplace culture and propels business achievements. According to research conducted by the Singapore Human Resource Institute (SHRI), a significant majority of organizations are currently in the process of incorporating AI and automation into their payroll systems. As organizations evolve, adopting AI- “The holiday season offers an opportune period to reconsider payroll, viewing it not only as a typical operational task but as a valuable strategic ally that enriches workplace culture and propels business achievements.”

Author: Ganesh Gopalakrishnan

Ganesh Gopalakrishnan is an astute Global Program and Client Management Leader, renowned for his expertise in HR transformation, payroll, and software services. With over 15+ years of experience leading strategic global clients from the APAC region, he has an established record of implementing large-scale, innovative solutions that enhance operational efficiency and drive client success. Currently serving as a Global Program Manager at ADP, Ganesh combines strategic vision with practical technical skills, effectively leading agile teams to achieve meaningful, people-centric outcomes. He holds advanced degrees from the University of Melbourne and the National University of Singapore, establishing him as a thought leader in his field. W: ADP Singapore

Payroll as a career: Insights from senior payroll professionals

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THE ROLE OF DIG TRANSFORMING

As per the McKinsey research 2024 , an estimated 90% of all organisations are currently engaged in digital transformation of one form or another.

Micro firms are also eagerly embracing digital solutions to stay competitive in the modern market. World Bank’s Digital Progress and Trends Report 2023 shows that in recent years, the number of micro firms investing in digital solutions has doubled from 10% to 20% whereas for large firms it has gone from 20% to 60%. As

By Truong Bich Ngoc

GLOBAL PAYROLL MAGAZINE

GITALISATION IN G HR FUNCTIONS but a fundamental shift that is

emerging market economies integrate more deeply into the global market, every facet of business, including the Human Resources (HR) industry, is experiencing a profound shift driven by digitalisation.

redefining how HR functions operate. The implementation of digital tools is empowering businesses of all sizes in countries such as Vietnam, India, Indonesia, the Philippines, Kenya and many other growing nations, to compete more effectively on the international stage.

The integration of digital tools and platforms is not a mere trend now,

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According to statistics from Forbes Advisor , 80% of businesses utilise HR software, particularly for talent acquisition and retention, onboarding new employees, and monitoring employee performance. This widespread adoption of digital tools underlines the transformative potential of digitalisation in HR. In this article, we will explore how digitalisation can be leveraged to streamline processes, enhance employee experience and help in better decision-making. 1. Streamlining Processes with Digital Tools The adoption of digital tools in HR has revolutionised how businesses manage their workforce. Software applications such as Applicant Tracking Systems (ATS) automate the recruitment process, from posting job vacancies and tracking applications to scheduling interviews. Once the onboarding is done, cloud-based Human Capital Management (HCM) systems take charge to automate payroll management, employee attendance tracking, and benefits administration. The shift from manual processes to software automation not only speeds up the HR related processes, but also reduces the occurrence of errors and allows the HR teams to focus on more strategic functions. 2. Enhancing Employee Experience through Digital Platforms With a growing young workforce in a majority of countries, there is an

increasing demand for more engaging and dynamic work environments and digital platforms can surely help HR departments in this task. For instance, self-service portals allow employees to access and manage their personal information, benefits, and leave requests at their convenience while digital communication tools such as Microsoft Teams and Slack support better collaboration and engagement among employees. Beyond providing self-service portals and communication tools, there are several other ways digital platforms can enhance employee experience. For instance, using virtual reality (VR) training for offering immersive learning experiences. Top companies such as Walmart and UPS are already utilising this technology to train their employees and have witnessed excellent results. As Walmart’s vice president of learning notes, using specific VR headsets in the classroom has boosted test scores by 5% to 10%. To continue the success rate, Walmart is

GLOBAL PAYROLL MAGAZINE

“ANOTHER MAJOR WAY TO KEEP EMPLOYEES ENGAGED IS THROUGH CONTINUOUS FEEDBACK AND RECOGNITION.”

focused on transitioning some global learning management system modules into 3-5-minute segments in the VR environment. Another major way to keep employees engaged is through continuous feedback and recognition. According to statistics from Zippia , 65% of employees want more feedback and 76% of millennial employees are prone to quit their jobs if they don’t feel appreciated. Therefore, the implementation of feedback and recognition platforms within a company is highly advisable to meet the needs of employees in the digital age. 3. Data-Driven Decision Making Data-driven insights significantly improve decision-making quality. By analysing data related to recruitment, employee performance, and turnover rates, HR professionals can develop more targeted strategies for talent management and retention. For example, a company can use data analytics to identify its key management

behaviours and check whether that has been effective. If data indicates negative results, the HR team can shift strategies to be more effective. 4. Fostering Creativity in HR To be ahead of the curve, every organisation seeks to differentiate themselves in a competitive job market. As a result, HR teams are implementing innovative solutions such as gamified recruitment processes and online learning platforms tailored for their workforce. The touch of creativity in the hiring process also goes a long way. For instance, Google’s coding competitions are a tool to identify talents , and the company often presents job offers to the winners. Similarly, Deloitte, Marriott Hotel, Dominos, Whirlpool and many other companies use gamified training and assessment tools. This creative evaluation not only tests the candidates’ problem-solving skills but also gives a deeper insight on their diverse capabilities.

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How to Overcome the Challenges of Digitalisation While digitalisation in HR brings a wealth of benefits, it also introduces a series of challenges that must be navigated with care: One of the primary challenges of digitalisation is the high implementation cost, especially for small and medium-sized enterprises. Complete digitalisation demands significant investment, so organisations must plan carefully and execute their digital transformation strategies in stages. With the increasing use of digital tools, another major challenge is data security and privacy of sensitive data. Organisations must implement robust cybersecurity measures to effectively address this challenge. New technologies may bring hesitation, therefore, digital literacy programs for employees are a must to avoid any complexities. Conclusion By embracing digitalisation, developing countries are reshaping

their traditional practices. Streamlining processes, cloud-based management systems, enhanced employee interactions and data-driven proactive and strategic decision-making will help organisations of any size to attain success in the increasingly competitive global market. As companies continue to innovate and adapt, these digital advancements will be crucial in maintaining a competitive edge and dependable workforce.

Author: Truong Bich Ngoc

As an HR Solutions Advisor at Akrivia HCM Vietnam, Truong Bich Ngoc

is dedicated to delivering tailored HR solutions that ensure compliance and meet client needs across Southeast Asia. With expertise in setting up payroll systems for both Vietnam and Thailand, providing compliance guidance, and consulting on complex HR issues, Ngoc collaborates closely with product teams and clients to facilitate smooth and effective HR operations.

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U.S. Practitioner’s Perspective: On Paid Leave Law

By April Smith

According to the Bureau of Labor Statistics, a branch of the Labor Department that has been assessing paid sick leave in the U.S . since 1979, approximately 20% of employees do not have access to some type of paid sick leave through their employer. But this is changing. History of Paid Leave Efforts in the U.S. Let’s backtrack for a moment and review how paid leave entered modern society. In 1910 President Within the United States, there are very few legal requirements for employers to provide paid time off and/or protect the jobs for those who may need to take leave.

William Taft proposed every worker needed to have two or three months of vacation each year. While this was not adopted by the U.S., Sweden and Germany soon followed and began requiring their employers to offer seven weeks paid leave to their citizens. In the 20 years after the introduction of paid leave, more than 30 countries required some form of compensation to workers for time off.

But not the U.S.A.

GLOBAL PAYROLL MAGAZINE

s ws

“During the recent pandemic, there was a temporary FMLA requirement to pay workers under some conditions for time off taken, but the law no longer has that provision.”

There have been other attempts in the U.S. to adopt paid leave laws, but these efforts generally have been met with strong opposition stating it would cause job instability in the market. It wasn’t until 1993, when President Clinton signed into law the very first national Family Medical Leave Act (FMLA), that businesses employing 50 or more individuals were required to provide 12 weeks annually of job protection for those employees who have been at their job a year or longer.

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There is no requirement for the employer to pay the workers for that time off, but they must retain the position for employees qualifying to use the leave. Employees may use the FMLA leave for their own personal major health issue or that of a family member such as a spouse, child or parent who is unable to care for themselves. But the main purpose of FMLA is to safeguard jobs while people need to be out. Can an employee be terminated while on protected leave? Yes, only if the employer has cause unrelated to the approved leave of absence.

During the recent pandemic, there was a temporary FMLA requirement to pay workers under some conditions for time off taken, but the law no longer has that provision. An earlier proposal put forward by the first Trump Administration that would have provided paid family leave for new parents never got off the ground. States and Localities Step In Failure as a country to provide a blanket policy to cover all employees left individual states, counties, and cities to take matters into their own hands crafting specific laws for their jurisdictions.

“Payroll needs to work with HR colleagues in implementing these new requirements so that deductions are properly made and accruals are reported accurately and timely.”

GLOBAL PAYROLL MAGAZINE

Several localities in some states, like California, Illinois, and Washington, also instituted required leave accruals for workers in those jurisdictions. To add another wrinkle to required leave time policies, several states are administering what is being called Paid Family Leave (PFL). These programs run concurrent to the federal FMLA 12-week (also, an extra 2 weeks in some areas for victims of domestic violence or for baby bonding time) allowance with the exception that the employee is being paid while out.

This has left employers and payrollers with a hodgepodge of requirements to administer , depending upon where the workforce is located. Connecticut in 2011 was the first state to require employers to provide employees a minimum number of days to be taken as sick time. Since then, as of late 2024, there are 18 states (Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Nevada, New York, Oregan, Rhode Island, Vermont, and Washington) plus Washington, D.C. that require employers to provide paid sick time off.

Most of these PFL funds are collected by the jurisdiction as an additional

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tax through payroll deductions and remitted to the state by the employer. There are a few states that have an employer contribution component, but the majority of PFL plans are employee-funded. Maine’s PFL, for example, starts January 1, 2025, and the total deduction requirement is 1% of an employee’s gross wage. The employer can opt to pay the entire 1% or recoup up to .5% from the employee. Payroll needs to work with HR colleagues in implementing these new requirements so that deductions are properly made and accruals are reported accurately and timely. Although a federal requirement for paid leave remains elusive, requirements for paid sick leave and paid family leave are becoming more popular post-COVID. In the most recent election cycle, citizens of Alaska, Missouri, and Nebraska voted to require employers to provide sick leave. On January 1, 2026, another four states (Delaware, Maine, Maryland and Minnesota) are expected to implement their Paid Family Leave programs. How Payroll is Involved How does all this relate to or impact a company’s payroll? Modern technology is great with being able to track taken and accrued time off, but the challenge is understanding

the laws and regulations to configure accrual policies.

If one thing is certain, it is that a one- size-fits-all leave program is practically impossible in an environment where full-time workers must accrue leave at one rate, part-timers at another, and minimum amounts that need to accrue and carry-over vary. Often it is a best practice to consult with an employment attorney specific to the state or jurisdiction an employer does business in to craft a plan to meet the leave law’s requirements. While it can seem overwhelming as a payroll leader to stay informed of any changes and new requirements, resources are available, and my payroll colleagues in the U.S. are up to the task.

Author: April Smith

April Smith, CPP, is the Director of Payroll & Benefits

for Senior Lifestyle LLC (SLC) based in Chicago. SLC specializes in the senior housing industry. April has 18 years of experience in various Payroll & HR roles where she developed a broad range of skills in areas critical to the employee base of an organization and operational goals.

Email: AprilS@seniorlifestyle.com

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Deck the Halls with

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Payroll Compliance: a 12-step checklist As the festive season approaches, processing employee pay is front of mind - but ensuring the accuracy of those payments is just as crucial. Here are twelve key tips for Australian employers, with insights that global businesses can also consider - helping you gift your payroll process the ultimate compliance plan this Christmas.

By Kirsty Martin

Now is the perfect time for Australian businesses to reflect on the year gone by, celebrate their successes, and plan for an even better year ahead. Payroll compliance is an essential part of this reflection—because while it may not be top of mind every day, employees deserve to be paid accurately and on time, especially during the holidays when they’re looking forward to enjoying their hard-earned income with loved ones. With that in mind, here are twelve key actions to ensure your payroll compliance stays on the “nice” list into the new year. While

particularly relevant for Australian employers, these checklist to-dos can be reflected upon by global employers too. 1. Review employee classification Consider a retail business employing both casual and full-time staff. Upon reviewing employee classifications, you discover that a team member regularly working weekend shifts has been classified as casual, even though their work pattern meets the criteria for part-time status. To prevent scenarios like this from

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happening, ensure every employee is appropriately classified based on their work arrangements. 2. Review casual employees In Australia, certain industrial instruments require casual employees to be transitioned to permanent part- time or full-time roles if they meet specific criteria, such as working regular hours over a designated period. For businesses with casual staff, it’s crucial to regularly review their employment type and ensure that their entitlements align. 3. Review agreements

identifying any adjustments that may be needed. 5. Establish procedures for keeping up with award changes Navigating the evolving landscape of Australian employment law can be challenging, especially with frequent updates to awards. It’s crucial to review existing procedures or, if none are in place, develop a systematic approach. For example, setting up alerts or subscribing to notifications about award changes helps ensure businesses stay informed and can make necessary adjustments promptly to remain compliant. 6. Ensure age-related wage adjustments are implemented Age can impact pay rates under certain awards, with rates typically increasing as employees reach specific age milestones. Failing to adjust pay accordingly can lead to underpayment issues. Employers should conduct regular reviews of employee pay based on age and job duties to ensure they are being compensated correctly. 7. Check annual and personal leave accruals Employers must ensure that employees are accruing annual and personal leave in line with the terms set out in their industrial instruments. This includes understanding how

Enterprise agreements may be misinterpreted, leading to discrepancies in pay rates or

entitlements that don’t align with the actual terms of the agreement. To prevent situations like this, it’s essential to regularly review enterprise agreements to ensure that all conditions are accurately applied to the right employees. 4. Conduct annual salary reconciliations In Australia, certain industrial instruments, like the Banking, Finance, and Insurance Award, require an annual reconciliation of salaried employees’ wages to ensure they are properly compensated for all entitlements. If your business falls under these requirements, it’s important to begin planning for this reconciliation process. This includes gathering the necessary data and

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different leave types, such as leave without pay, affect accruals. Regular reviews of leave accrual processes are essential to prevent potential compliance issues. 8. Verify long service leave (LSL) provisions for part- time employees LSL entitlements can vary by state and industry in Australia. Review your records to ensure that your system accurately tracks LSL entitlements for part-time employees, as well as any other unique requirements. If your business is covered by a portable LSL scheme, you must report employee information annually and make the required payments to the Portable Long Service Leave (PLSL) fund. 9. Remove pay secrecy clauses from employment contracts In Australia, pay secrecy clauses that restrict employees from discussing their pay and conditions are now banned. Employers should review employee contracts and remove any pay secrecy clauses to comply with this recent change. 10. Conduct a thorough audit of record-keeping practices Accurate record-keeping is essential for maintaining compliance. Businesses must be ready to provide detailed explanations during audits,

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such as the rationale behind overtime payments or how meal breaks were tracked. Regularly reviewing and improving processes for maintaining precise records of pay, hours worked, and breaks is crucial for ensuring compliance and being well-prepared for potential audits. 11. Understand and manage pay codes for long service leave Businesses must confirm that pay codes in their payroll systems correctly reflect the factors that count towards LSL entitlements. If there is uncertainty about which codes should be included, it may be worth seeking expert advice. Ensuring that pay codes align with entitlements is a foundational step for compliance, particularly for part- time and casual employees who may have unique entitlements. 12. Audit internal processes for interpreting industrial instruments Interpreting industrial awards and agreements can be complex, so it’s important to establish or refine a clear process for this. Consider conducting an external audit to verify that internal practices are applied correctly and consistently. Since it’s difficult to assess your own work, an external review offers a fresh perspective and can uncover potential compliance issues

that might otherwise be overlooked. Publicised underpayment claims serve as a reminder that employers cannot solely rely on individuals or payroll products to ensure pay compliance. Even the most experienced and knowledgeable teams are susceptible to human error. This checklist is designed to help Australian businesses strengthen their payroll compliance. By reviewing it, businesses, even globally can celebrate the holiday season with confidence and enter the new year with a plan to reinforce their compliance foundations for long-term, future-focused success.

Author: Kirsty Martin

Kirsty Martin - Head of Customer at Yellow Canary

- is an expert in Australian payroll compliance. With over 15 years of experience in payroll operations, Kirsty is passionate about solving compliance problems using automation technology, compliance expertise, and effective relationship building. Prior to joining Yellow Canary, Kirsty was a leader in payroll compliance, services, and operations. She later moved into consulting at a Big 4 firm, advising on end-to-end payroll optimisation for some of Australia’s leading brands in finance, manufacturing, and FMCG.

Transform your global payroll experience with the award winning UKG One View™.

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GLOBAL PAYROLL MAGAZINE

Flexibility on the frontlines – why payroll needs to keep up Businesses’ approach to flexibility is changing. Following the pandemic, flexible working has become the norm across various industries, highlighting a strong link between flexibility and productivity. These arrangements have proven to not only enhance employee satisfaction but also contribute to overall business efficiency. By Neil Pickering

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Payroll issues on the frontline While flexible working arrangements are highly valued by employees, they can introduce challenges for payroll systems. With workers splitting and swapping shifts, schedules being adjusted in real-time, and hours fluctuating based on demand, tracking hours and ensuring accurate pay is far more complicated than for a traditional salaried office worker who logs a straightforward 40-hour week. From a cultural standpoint, it’s essential for businesses to get payroll right. Timely and accurate pay is a foundational element of a positive employee experience. If payroll errors occur repeatedly, it can quickly erode trust, leading to dissatisfaction and disengagement. Over time, this can have a significant impact on business outcomes and drive employees to seek other opportunities, resulting in costly turnover and retention challenges. “In response to the growing demand for flexibility, frontline sectors have adapted by providing workers with options like shift swaps, split shifts, and flexible schedules.”

However, as flexibility continues to reshape work in frontline sectors, payroll systems must adapt to accommodate fluctuating hours, irregular shifts, and the growing demand for real-time accuracy.

Flexibility beyond remote work

When we think of flexible working, it’s often associated with hybrid or remote work arrangements. Yet, this kind of flexibility isn’t an option for many frontline workers. Around 3.5 million people in the UK work shifts and 60% of the workforce is required to be physically present on the job. This is especially true for retail, manufacturing, and other sectors where work simply cannot be done from home. In response to the growing demand for flexibility, frontline sectors have adapted by providing workers with options like shift swaps, split shifts, and flexible schedules. These flexible arrangements not only allow employees to balance personal responsibilities, such as childcare or part-time commitments, but they also boost productivity. In fact, a trial by Timewise and the Institute for Employment Studies found that 83% of frontline workers with adjusted schedules reported increased productivity, as they could better align work with personal priorities. But with greater flexibility comes greater complexity, especially when it comes to payroll.

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Challenges workers are experiencing Our recent payroll survey reveals key statistics on the challenges frontline workers face with payroll. Nearly half (47%) of frontline workers believe their changing shift patterns make it difficult to track hours worked and determine if their pay is accurate. As a result, 52% of employees compare payslips with colleagues to verify accuracy. This lack of confidence in payroll systems can lead to financial stress, with 14% of workers relying on payday loans to make ends meet. These issues cause unnecessary stress on the workforce, undermining the benefits that flexible working arrangements are meant to provide. The result is a lack of confidence in payroll processes and even in employers, which negatively impacts both employee wellbeing and overall productivity. What employers need to do To address these challenges, employers should aim to implement technology that helps manage flexibility while maintaining accurate and efficient payroll. Workforce management (WFM) solutions, for example, can greatly improve the employee experience by accurately capturing worked hours and absences and automatically integrating this data into payroll systems. This ensures that employees are paid correctly and on time. Empowering employees through self- service tools is equally important too. Frontline workers often feel that payroll is beyond their control, which can be frustrating. Solutions that allow workers

to manage shift swaps, coordinate split shifts with colleagues, and book holidays directly give employees more autonomy. This not only improves the employee experience but also reduces the administrative burden on managers, resulting in happier and more productive teams. Ultimately, payroll should not be seen as part of the problem but as part of the solution. By embracing technology and empowering employees, businesses can create a positive culture, improve employee engagement, and enhance productivity, ensuring that flexibility on the frontlines truly works for everyone.

Author: Neil Pickering

Neil Pickering, Senior Manager of HR Innovation at UKG, is a veteran of 20+ years in the IT world. Neil is an evangelist for how people technology and personalised performance cultures can transform business performance and employee experience. Through close collaboration with customers, UKG researchers and supply chain partners, Neil and his team develop and deliver content that bring stories of transformation to life, helping individuals and organisations alike achieve growth.

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The Power & Limitations of Payroll Technology Across Africa By Eddie Van Zyl

GLOBAL PAYROLL MAGAZINE

Payroll technology has made remarkable strides in Africa, but sweeping generalizations fail to capture the nuances of this diverse and rapidly evolving continent. From Kenya’s tech-first mindset to Mozambique’s reliance on in-person compliance procedures, Africa’s payroll technology landscape spans a broad spectrum. For businesses operating across the continent, understanding both the potential and the limitations of payroll tech is critical to navigating its complex environment.

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The Power of Payroll Technology in Africa 1. Streamlined Compliance & Tax Calculations Payroll software now automates complex tax calculations, deductions, and contributions, alleviating compliance risks. For example, Nigeria has over 10 different payroll-related taxes and deductions, including PAYE, pensions, and NHF contributions. Systems like SAGE Africa integrate these calculations automatically, saving up to 30% of the time typically spent on manual processes. Moreover, automation reduces errors, which can cost businesses an average of 1% - 2% of their payroll annually due to miscalculations. 2. Bridging Infrastructure Gaps with Mobile Money In sub-Saharan Africa, only 43% of adults have access to traditional banking services, but over 64% use mobile money platforms. Mobile payroll solutions facilitate seamless salary disbursements, reaching remote employees who lack access to formal banks. For instance, in Kenya, over $50 billion in transactions was processed via mobile money in 2023, making it a cornerstone of payroll accessibility.

1,000 employees across five countries could save approximately $250,000 annually by optimizing payroll through automation and analytics.

4. Scalability for Pan-African Operations

“ Africa’s regional economic growth is driving cross- border expansion. The African Continental Free Trade Area (AfCFTA) agreement, covering 54 countries, is expected to boost intra-African trade by 52% by 2025. ” Africa’s regional economic growth is driving cross-border expansion. The African Continental Free Trade Area (AfCFTA) agreement, covering 54 countries, is expected to boost intra- African trade by 52% by 2025. Payroll technology allows companies to scale without being overwhelmed by multi- country compliance challenges. For example, using cloud-based systems tailored for Africa, companies can reduce payroll setup costs by 40% when expanding into new markets.

3. Real-Time Analytics and Decision Support

Advanced payroll systems can reduce payroll reconciliation errors by up to 80% while providing real-time insights into labor costs, compliance risks, and workforce trends. These systems allow businesses to track expenses across borders, vital for organizations with operations in multiple countries. For example, an African fintech with

GLOBAL PAYROLL MAGAZINE

The Limitations of Payroll Technology in Africa 1. Complex and Divergent Regulations Africa’s 54 countries have vastly different labor laws and tax systems. In Nigeria, social contributions are split across agencies such as the Federal Inland Revenue Service (FIRS) and the National Pension Commission (PenCom). Meanwhile, South Africa’s payroll compliance demands adherence to laws like PAYE, UIF, and SDL, each with specific thresholds and deadlines. This fragmentation often results in businesses spending up to 25% more on payroll administration than in regions with harmonized systems.

in payment delays that can affect up to 20% of employees in rural regions. 4. Resistance to Change and Training Gaps Studies show that 60% of African businesses still rely on manual payroll processes. Transitioning to tech-based systems requires significant retraining, especially for small businesses that may lack the resources to upskill staff. Without adequate training, error rates can spike by as much as 35% during the first six months of implementing a new payroll system. 5. Data Privacy and Security Concerns Africa’s data privacy landscape is uneven. While countries like Kenya, Nigeria, and South Africa have enacted privacy laws, 26 African nations still lack comprehensive data protection regulations. Businesses handling sensitive payroll data risk breaches that could cost up to $3.92 million per incident on average, according to IBM’s 2023 Cost of Data Breach report. Opportunities for Payroll Tech Advancement in Africa Despite its limitations, payroll technology holds immense potential to transform Africa’s workforce management landscape. Localized Innovation: The African payroll software market is projected to grow at a CAGR of 10.5%, reaching $800 million by 2028. Companies investing in localized solutions can address unique challenges like multi-agency compliance or mobile- first accessibility.

2. Persistence of Physical Documentation Even in 2024, over 30% of African countries require physical

documentation for payroll compliance. For example, in Angola and Zimbabwe, stamped hard copies are mandatory for tax submissions. These requirements often add an additional 10-15 days to payroll processing timelines, undermining the speed and efficiency that digital systems offer. 3. Limited Digital Infrastructure in Rural Areas Sub-Saharan Africa’s internet penetration rate is 43%, well below the global average of 66%. In countries like Chad and the Democratic Republic of Congo, connectivity drops to as low as 10%, significantly limiting payroll tech adoption. Additionally, electricity reliability remains a challenge, with 600 million Africans still lacking access to stable power grids. These barriers result

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“ Studies show that 60% of African businesses still rely on manual payroll processes. Transitioning to tech-based systems requires significant retraining, especially for small businesses that may lack the

Public-Private Collaboration: Governments and tech providers partnering to modernize payroll systems could reduce compliance- related delays by up to 40%. Expanding Mobile-First Solutions: With mobile money usage expected to rise by 20% annually, payroll tech integrated with mobile platforms will dominate the market. Improved Training Programs: Offering targeted training can boost payroll tech adoption rates by 50%, enhancing efficiency and reducing errors. The Future of Payroll in Africa Africa’s payroll technology is at a turning point. Its strength lies in its ability to simplify compliance, increase accessibility, and enhance operational efficiency. However, its limitations—regulatory fragmentation, infrastructure gaps, and resistance to change—highlight the need for tailored, strategic approaches. By investing in localized solutions, fostering cross-border collaboration, and embracing mobile-first innovations, businesses can unlock Africa’s economic potential while empowering its diverse workforce. Organizations that adapt to the complexities of Africa’s payroll landscape will be well-positioned to lead in one of the world’s most dynamic regions.

resources to upskill staff. ”

Authors: Eddie Van Zyl

Eddie Van Zyl is a passionate Africa Payroll Specialist at Africa HR Solutions. As a certified Sage 300 Payroll and HR Consultant with over 15 years of experience, Eddie specialises in full payroll project implementations, upgrades, and integrations. Prior to joining Africa HR Solutions, Eddie worked 13 consecutive years as a Senior Payroll Consultant for Sage.

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ISSUE 7

If payroll could send its Christmas gift list to Santa, it wouldn’t be surprising to find acknowledgement, met deadlines, and less time spent chasing information among the top five wishes. However, to make these wishes come true, we can’t stand alone. Even Santa has his elves, and we, too, need collaboration to achieve miracles. All I Want for Xmas By Zennie Sjölund

Transforming Competence into Sustainable Impact What we need is to wrap up our competence and knowledge in a new package. Or better yet, reuse the data we monitor to create a valuable gift. Think of it as delivering insights that feel like opening the perfect present— timely, impactful, and full of surprises. Santa isn’t the only one working globally. While his mission involves going down chimneys, we’re focused on reducing the emissions that rise up. At COP29 in Azerbaijan, global leaders unwrapped a call for increased ambition and collaboration to meet the Paris Agreement goals and effectively combat climate change. They also emphasized the importance of mobilizing sufficient climate financing

to support developing countries in their transition to sustainable energy and adaptation efforts. ESG: Environmental, Social, and Governance with Payroll at the Core The climate is just one part of ESG— the “E” for ecological. Adding to this is the “S” for social and the “G” for governance. Governance refers to how effectively payroll processes are managed, adhering to ethical, legal, and transparent principles. Governance plays a critical role in ensuring that payroll systems support broader organizational accountability and compliance goals. Payroll compliance is a cornerstone of sustainability reporting. The bells of payroll’s impact during COVID should ring again.

GLOBAL PAYROLL MAGAZINE

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reporting. The Global Reporting Initiative (GRI) is one of the most widely used frameworks, offering standards for companies to report on their sustainability performance. Other notable frameworks include the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB). In the U.S., there are currently no federal laws mandating sustainability reporting. However, the Securities and Exchange Commission (SEC) has proposed rules requiring companies to disclose climate-related risks and emissions. These proposals are yet to be finalized. In countries like Japan and Singapore, there are guidelines and recommendations for sustainability reporting, though they are often voluntary. In China, certain companies, especially those listed on stock exchanges, are required to disclose information on social responsibility. For European companies, legislation around ESG is becoming the icebreaker, setting the foundation for change and accountability. The EU has increasingly regulated sustainability reporting. The former Non-Financial Reporting Directive (NFRD) required large companies with more than 500 employees to disclose information on environmental, social, and governance matters. This has now been replaced by the Corporate Sustainability Reporting Directive (CSRD), which expands these requirements to include more companies and imposes stricter reporting obligations.

“ Think of it as delivering insights that feel like opening the perfect present—timely, impactful, and full of surprises. ”

Social aspects are where payroll truly shines. Few functions in an organisation have such a deep insight into the wellbeing of employees. From onboarding to offboarding, payroll provides steady support to enhance efficiency, earn trust, and contribute to the company’s overall wellbeing. Often, we operate in the background. Yet, we solve issues—under the snow—that could otherwise create challenges for both employees and employers. Now is the time to step into the spotlight. With payroll insights, we can act like Santa’s little helpers, crafting smart strategies for managing business trips, purchases, and other activities that impact sustainability.

Global Trends in Sustainability Reporting

Sustainability requirements vary worldwide. Beyond national and regional regulations, global frameworks provide guidance for sustainability

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