Based on the 2019 Global Payroll Complexity Index, information, particularly, the protection and security of data – is currently the main issue for the industry. As the report clarifies, “Payroll holds the key to market success. It’s the premium in payroll data which makes it very high risk.” That payroll workers are, therefore, concerned about securing this valuable asset is hardly shocking. A survey of payroll professionals found the following:

On average, Human Resource and payroll departments deploy approximately 35 hours per week on compliance-related activities which range from tracking regulatory proposals to creating and discussing new policies – enough time for a dedicated full-time worker.

Companies with less than 500 workers average twenty-three hours each week on compliance issues, and those with 500-999 workers average thirty-one hours each period. That goes up to thirty-six hours per cycle for companies with 1,000-2,499 employees.

Which are the three main issues of concern?

“The results of the Global Payroll Complexity Index confirm that in 2019, global organizations are challenged by managing growing amounts of employee data, adhering to data privacy rules, and staying compliant in a world of robust employment and taxation compliance rules around the globe,” explained Mary Holland Global Director of Strategy, Development and Training at the Global Payroll Management Institute (GPMI) and the American Payroll Association (APA).

To anyone working in
international payroll , the results of the study may appear as no surprise. GDPR is a game-changer; the increasing volume of information presents with it greater security issues, as well as the constant onslaught of additional labor laws group to offer payroll managers with a giant job.

Today we will examine each of these issues in a bit more detail and then see how payroll professionals are trying hard to conquer every concern.

General Data Protection Regulation (GDPR)

GDPR and why it’s evolving Europe’s information protection laws may be possibly one of the most important results in the payroll industry in recent history. The law governs not just what data may be stored; but also, where, by whom, and duration. What is also hugely significant for global operators is that GDPR applies not only to businesses and organizations within the EU, but also to companies and organizations outside of the EU if they provide goods or services to people in the EU or if they observe the behavior of EU data subjects. Every company- regardless of where they are domiciled- who process or store personal data of individuals residing in the EU are accountable and should be GDPR compliant.

Organizations that neglect to comply with GDPR risk reputational injury and fines. According to the recent report, data protection regulators have imposed EUR114 million in fines since May 2018.

Information breaches

The unique and sensitive matter of employee data reveals that companies are in extreme pressure to ensure they do not become victim to hackers. That type of issues creates potential problems for employees, and it also puts the company at risk of reputational injury and legal action.

A recent example of such an issue occurred in April when American education tech company Chegg experienced a data issue where criminals stole 700 records that contained both previous and present employee information like names and Social Security Numbers.

Legislation compliance

Staying current with changing legislation is a great challenge faced by payroll professionals. Once again, this is not at all surprising given the high occurrence of changes in the laws both local and global. From the 2019 Global Payroll Complexity Report, we realize that since European countries still top the list for most involved reporting, the growth economies in South America, Asia, and Africa mean countries in those areas are beginning to make additional changes to their regulations which will greatly affect the task of payroll.

How may payroll better handle those challenges?

A response is to head to a unified global payroll provider. While the many capabilities of a single payroll platform extend past ensuring compliance, the fact is they can significantly minimize compliance concerns.

GDPR

The foundation of GDPR compliance is ensuring the protection of your data. Payroll should be able to answer the following questions:

What information do you have?

How do you keep this information?

Why are you keeping this data?

How secure is it?

While analyzing different payroll vendors, take the time to explore all of these questions with them to make certain each has the abilities to satisfy your information responsibilities. The Immedis Platform protects your information by several measures which includes encryption and the ability to remove data from its subject so that the information is stored individually providing another layer of security and protection.

Data breaches

Protecting your information is critical. However, a global payroll platform that provides an ISO level certification provides security. Especially, a ISO 27001 certificate since it is known as the global standard for data security management. Immedis is ISO certified, which means the company run regular internal audits and perform twice yearly outside audits to ensure compliance. They additionally employ a strong control framework – every action on the Immedis Platform is user stamped.

Regulatory updates

Staying current on payroll legislation can be a behemoth task. The risks and monetary consequences of failure to do so are also immense. Deloitte presents the success of a global service provider: “An international service provider offers a unique solution on the tax and social security compliance-related tasks by providing payroll services for most countries around the planet.” An additional benefit is getting updated data on amendments – especially about local laws – and connecting with multiple vendors is managed with a single vendor. Immedis has extensive international payroll knowledge and provides continuing updates for local legislative issues and the impacts on employees.