Multinational companies nowadays are being presented with the increasingly-crowded stage of international payroll– the process is far more complex than meeting local tax requirements.
Since most payroll operations have evolved on national basis, there is limited standardization, centralization, and visibility of country functions. Most of the time, internal reporting is patchy. The development to process excellence is continual, and it is without a challenge.
Here’s a few of the challenges:
1st Challenge: Perfecting local payroll system
In obtaining smooth global payroll operations, there has to be a grand plan to optimize all processes at a local level. Moving to a global operation, you have to analyze where cuts can and cannot be made.
Firms must review existing local, national, or regional processes and operations to get a complete understanding of their relations and how they can optimize them all together.
It is not only to simply define a strategy, but more precisely to limit the range of issues to look at in terms of inefficiency, compliance issues, dysfunctional operations, relationship with the suppliers, and such. This is where it becomes evident that moving to global operations can save you on cost.
2nd Challenge: Guarantee tax compliance
An organization cannot move to a global payroll system if it lacks compliance with the tax legislation of its countries of operation.
Compliance issues are usually what impede firms from moving to international operations. The good news is that the improved technology and the rise of SaaS or cloud-based payroll software such as Salarium’s SAL Payroll have developed compliance-friendly modules that automatically update their system in accordance with the changes in tax regulations.
3rd Challenge: Symmetry between local flexibility and modified global operations
A healthy balance between the two is imperative for organizations. To achieve this balance, a firm must have a software application that can run a global payroll system as employment terms fluctuate rapidly.
The payroll software must be able to centrally manage the most essential payroll processes for all countries and can make crucial revisions for local branches without extra costs.
4th Challenge: Precise reporting
Accuracy in reports helps with the compliance and audit issues of firms. Retention of an in-house payroll management that can present precise, real-time analysis or reports even while moving to global payroll operations is just the right solution.
5th Challenge: Employee data privacy and protection
Data protection issues pose threats to firms, and using a secure storage facility to keep all confidential paper records of your firm can be quite expensive. The most basic solution is getting a data management system that has a high security access and restriction.
Ensuring a software application that has a reliable data management system to handle employee data privacy and security must be high up the agenda.
Payroll is one of the few concerns that make any business in the Philippines or anywhere in the world too busy. However, Salarium is able to simplify the process of generating payroll through its SAL Payroll that helps monitor employees, accomplish government forms, prepare bank notes, and secure the 201 file of the whole workforce. If you are worried about the lengthy process of generating payroll, try SAL Payroll for free. To request for a free demo at your office, email your company location and preferred schedule to info at salarium.com