Global payroll is challenging. There’s no other way of putting it. Compliance, standardisation, automation, and reporting.
The challenges of running a multi-country payroll are numerous. So numerous and versatile that even experienced HR and payroll teams struggle when it comes to managing international payroll operations.
But what are the different global payroll challenges that businesses face when operating in multiple geographies? And more importantly: How can they be overcome?
Let’s elaborate on those…
Payroll Compliance On a Global Scale
According to the Global Payroll Management Institute (GPMI), the number one global payroll challenge faced by companies is global payroll compliance. Every country has its own deadlines for filing reports and paying taxes, which makes it hard to ensure everything is submitted on time.
Plus, payroll taxes and their respective rates vary between jurisdictions, and so do the rules for tax deductions and administration benefits. Another important compliance aspect to consider is employee misclassification.
Payroll compliance is always a challenging task for organisations, but with a global payroll, the complexity level rises with each additional geography. Businesses can minimise compliance risks by getting advice from local experts or by outsourcing payroll completely to an external service provider.
At Relocation Africa, our remuneration department specialises in payroll for the entire African continent, who each has different deadlines for filing reports and legal processes.
Why Choosing a Single Payroll Provider for Africa is Better
Choosing the right payroll service provider can in itself be a global payroll challenge. There are loads and loads of payroll professionals out there that offer their services in one or even several countries.
Comparing their service features and pricing to make sure they meet all the necessary requirements is a very time-consuming and daunting task.
To avoid wasting time comparing numerous providers, organisations can look into a regional payroll solution.
At Relocation Africa, our Remuneration department have a unique platform to keep everything in the same place, for all of the African countries.
Multi-vendor management
In the 2021 “Getting the world paid” survey, the GPMI found that 43 percent of companies with global operations work with between two and five payroll partners. Another 19 percent even have to manage between six and ten providers. Working with multiple payroll vendors means having to deal with various different processes and systems, which is complicated and inefficient.
That’s why payroll integration is an important aspect when choosing a global payroll solution. Global payroll platforms allow for integration with regional payroll systems used by the different providers so that businesses can have access to payroll data and insights from multiple systems through one centralised platform.
Lack of transparency and visibility
Data coming from different payroll vendors isn’t standardised, which makes it hard to track global payroll costs and compare different geographies. Yet data transparency and detailed insights into global workforce costs are crucial for strategic decision-making.
To solve this global payroll challenge, businesses should invest in a payroll solution that standardises and consolidates all their payroll data into a centralised system. This is where regional payroll reporting capabilities offer even more insights into data.
Manual data handling
The 2020 Deloitte Global Payroll Benchmarking Survey showed that 30 percent of organisations identified manual data entrance as the most time-consuming aspect of payroll processing. The problem increases as soon as data from different payroll providers needs to be entered manually into the central HCM and accounting systems.
Not only does this mean wasting valuable time on dull administrative tasks, but it also creates more room for errors. This global payroll challenge can also be solved through payroll consolidation via a centralised platform consolidating payroll information from regional providers, such as Relocation Africa for Africa.
Data protection and security
Employee payroll data is very sensitive, hence the need for strong data protection. Running a global payroll means having to comply with different data security laws. What’s more, the various different data streams to and from the business’s central system can quickly become a real security risk if not managed properly. Reducing the number of payroll partners and focusing on a regional solutions that report in centrally will assist in the data security of personal information.
A good payroll service provider will offer high data protection standards with regard to their internal systems and guarantee compliance with major data protection regulations like GDPR. Data security during transfers between systems can meanwhile be ensured through the use of a global payroll platform that integrates with the different regional vendor systems and uses encrypted data transfers.
Different currencies and cross-border payments
Another global payroll challenge identified by the GPMI survey is paying employees in different currencies. Businesses have to make sure that the right amount of money is available in foreign currency to pay their global team and allow for additional time for the payments to go through. Plus, transaction and conversion fees can be high.
In many cases, businesses can solve this issue by having their regional/local payroll partner manage employee payments. In some countries, however, there’s a legal requirement for salary payments to be made by the employer through a local bank account.
Time zone, cultural, and language barriers
Going global always comes with cultural differences, language struggles and time zone issues, and global payroll is no exception to that. Reporting and tax filing needs to be done in the local language, and organisations must understand local cultural practices linked to employee benefits. Payroll-related communication is also more complicated and slower across different time zones therefore working with a regional payroll partner will solve these cultural barriers.
Working closely with regional payroll partners reduces the risk of not complying with local payroll practices, since they can offer advice on cultural differences and common practices with regard to payroll and compensation. Having an regional payroll partner also is a big advantage with regard to communicating with local authorities. Time zone issues can be solved through asynchronous communication.
Having an African regional payroll partner can speed up the process. Relocation Africa has the necessary structures in place and the necessary knowledge and experience, they can implement a regional payroll infrastructure much faster than the organisation itself.
Click on the link below to find out how our team of experts can help you:
A Guide to Payroll Reports
Paying your employees a salary is just the beginning – payroll reports entail a whole lot more. From essential documents to intricate calculations, meeting payroll requirements involves various tasks.
In this informative article, we will delve into the realm of payroll reporting and outline the necessary steps for employers. Get ready to gain a clear understanding of your obligations in the world of payroll reporting.
What Are Payroll Reports
Payroll reports encompass a collection of documents that gather vital information about a business, its employees, departments, teams, and more.
These reports play a crucial role in the payroll process, serving as a means to track employee salaries and disbursed funds. With their relevance extending to accounting and tax functions, payroll reports hold significant importance in ensuring accurate financial records and meeting regulatory requirements.
Types of Payroll Reports
There is a variety of different payroll reports, below are just a few, our next article explains them in detail:
Relocation Africa offers a full payroll reporting and expense management reconciliation reports.
Click on the link below to find out how our team of experts can help you:
Types of Reports in Africa
As each country has different payroll practices, taxation laws, and labour laws, each country will fill in different forms. You will typically be able to find out which reports are required by contacting the governing revenue service; for example, the governing revenue service of South Africa is SARS.
You can also choose to consult with one of our payroll advisors as they know exactly what is required in an African country.
Nonetheless, there are certain payroll reports that are commonly required across many countries, which may help you to establish a foundation for payroll compliance. We have compiled a list of these below:
Company Payroll Reports
A company payroll report will be able to provide you with detailed information on the payroll expenses within your business.
It is essential to consistently and punctually complete these reports for each designated time frame. By comparing these reports, you can gauge the estimated monthly funds required to fulfil your payroll obligations.
Employee Payroll Reports
This report is often also referred to as an employee earnings report. There should be an employee payroll report for each individual employee.
Usually, these reports contain details such as the employee’s wages, tax withholdings, and various allowances and deductions. It is important that the respective employee has access to their own payroll report, as they are entitled to review and receive it.
Payroll Tax Reports
These reports indicate what your company’s employees’ compensation consists of. These documents will typically be completed every quarter or on an annual basis.
On completion, you need to submit these reports to the revenue service governing your country. They will then assess and verify your business’s compliance with the payroll laws applicable to your country.
Certified Payroll Reports
Government contractors in numerous countries are obligated to furnish a certified payroll report, which varies in terms of frequency depending on the respective governing body.
These reports may be mandated on a weekly, monthly, quarterly, or annual basis. Their purpose is to disclose the payroll expenditures of the contractor to the relevant revenue service or governing authority.
Time Tracking Reports
If your employees are obligated to complete daily time sheets, these reports become essential. Time tracking reports allow you to assess the amount of overtime worked by an employee within a month as well.
Our Services
Payroll reports can be confusing, click on the link below and contact our team of experts to see how we can help:
Global Payroll Challenges
Global payroll is challenging. There’s no other way of putting it. Compliance, standardisation, automation, and reporting.
The challenges of running a multi-country payroll are numerous. So numerous and versatile that even experienced HR and payroll teams struggle when it comes to managing international payroll operations.
But what are the different global payroll challenges that businesses face when operating in multiple geographies? And more importantly: How can they be overcome?
Let’s elaborate on those…
Payroll Compliance On a Global Scale
According to the Global Payroll Management Institute (GPMI), the number one global payroll challenge faced by companies is global payroll compliance. Every country has its own deadlines for filing reports and paying taxes, which makes it hard to ensure everything is submitted on time.
Plus, payroll taxes and their respective rates vary between jurisdictions, and so do the rules for tax deductions and administration benefits. Another important compliance aspect to consider is employee misclassification.
Payroll compliance is always a challenging task for organisations, but with a global payroll, the complexity level rises with each additional geography. Businesses can minimise compliance risks by getting advice from local experts or by outsourcing payroll completely to an external service provider.
At Relocation Africa, our remuneration department specialises in payroll for the entire African continent, who each has different deadlines for filing reports and legal processes.
Why Choosing a Single Payroll Provider for Africa is Better
Choosing the right payroll service provider can in itself be a global payroll challenge. There are loads and loads of payroll professionals out there that offer their services in one or even several countries.
Comparing their service features and pricing to make sure they meet all the necessary requirements is a very time-consuming and daunting task.
To avoid wasting time comparing numerous providers, organisations can look into a regional payroll solution.
At Relocation Africa, our Remuneration department have a unique platform to keep everything in the same place, for all of the African countries.
Multi-vendor management
In the 2021 “Getting the world paid” survey, the GPMI found that 43 percent of companies with global operations work with between two and five payroll partners. Another 19 percent even have to manage between six and ten providers. Working with multiple payroll vendors means having to deal with various different processes and systems, which is complicated and inefficient.
That’s why payroll integration is an important aspect when choosing a global payroll solution. Global payroll platforms allow for integration with regional payroll systems used by the different providers so that businesses can have access to payroll data and insights from multiple systems through one centralised platform.
Lack of transparency and visibility
Data coming from different payroll vendors isn’t standardised, which makes it hard to track global payroll costs and compare different geographies. Yet data transparency and detailed insights into global workforce costs are crucial for strategic decision-making.
To solve this global payroll challenge, businesses should invest in a payroll solution that standardises and consolidates all their payroll data into a centralised system. This is where regional payroll reporting capabilities offer even more insights into data.
Manual data handling
The 2020 Deloitte Global Payroll Benchmarking Survey showed that 30 percent of organisations identified manual data entrance as the most time-consuming aspect of payroll processing. The problem increases as soon as data from different payroll providers needs to be entered manually into the central HCM and accounting systems.
Not only does this mean wasting valuable time on dull administrative tasks, but it also creates more room for errors. This global payroll challenge can also be solved through payroll consolidation via a centralised platform consolidating payroll information from regional providers, such as Relocation Africa for Africa.
Data protection and security
Employee payroll data is very sensitive, hence the need for strong data protection. Running a global payroll means having to comply with different data security laws. What’s more, the various different data streams to and from the business’s central system can quickly become a real security risk if not managed properly. Reducing the number of payroll partners and focusing on a regional solutions that report in centrally will assist in the data security of personal information.
A good payroll service provider will offer high data protection standards with regard to their internal systems and guarantee compliance with major data protection regulations like GDPR. Data security during transfers between systems can meanwhile be ensured through the use of a global payroll platform that integrates with the different regional vendor systems and uses encrypted data transfers.
Different currencies and cross-border payments
Another global payroll challenge identified by the GPMI survey is paying employees in different currencies. Businesses have to make sure that the right amount of money is available in foreign currency to pay their global team and allow for additional time for the payments to go through. Plus, transaction and conversion fees can be high.
In many cases, businesses can solve this issue by having their regional/local payroll partner manage employee payments. In some countries, however, there’s a legal requirement for salary payments to be made by the employer through a local bank account.
Time zone, cultural, and language barriers
Going global always comes with cultural differences, language struggles and time zone issues, and global payroll is no exception to that. Reporting and tax filing needs to be done in the local language, and organisations must understand local cultural practices linked to employee benefits. Payroll-related communication is also more complicated and slower across different time zones therefore working with a regional payroll partner will solve these cultural barriers.
Working closely with regional payroll partners reduces the risk of not complying with local payroll practices, since they can offer advice on cultural differences and common practices with regard to payroll and compensation. Having an regional payroll partner also is a big advantage with regard to communicating with local authorities. Time zone issues can be solved through asynchronous communication.
Having an African regional payroll partner can speed up the process. Relocation Africa has the necessary structures in place and the necessary knowledge and experience, they can implement a regional payroll infrastructure much faster than the organisation itself.
Click on the link below to find out how our team of experts can help you:
Tunisia – Travel Guide
Facts to assist you while travelling to Tunisia.
Tunisian population
Currency
Office Hours
Weekend
Time Zone
Calling Code
Tipping
Embassies
Government
Climate
Transport
Economy
Hospitality
Greetings
Money
Transportation
Safety
Culture
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Written by Saudika Hendricks
Edited by Eloise Williams