Recommended
Recommended
More Related Content
Similar to Managing Global Payroll Across Borders
Similar to Managing Global Payroll Across Borders (20)
Recently uploaded
Recently uploaded (20)
Managing Global Payroll Across Borders
- 1. Paying Across Borders Presented to: New Jersey Statewide Conference Date: September 15, 2017 Presented by: Dave Leboff, President, US Operations Immedis, Inc.
- 3. International Payroll Service Fully managed global payroll service offering Worldwide payroll calculations Multiple jurisdiction service Payslips for all employees Choice of payment frequencies Tax and social security deductions calculation and advice Coordination of tax and social security payments Employer wage tax return reports and submission Updates on rate changes for pensions and social security contributions Delivery of net pay into the employees’ bank accounts Remittance of tax to local authorities Year-end documentation supplied to employees Advice on relocation costs and subsistence payments
- 4. 1. Global Payroll Overview 2. Global Payroll Strategy 3. Locals Versus Expats 4. Outsourcing & Technology 5. New Country Startup 6. Best Practices 7. Questions Contents Overview
- 5. Global Payroll 1. Global Payroll Overview
- 6. Global Payroll Overview In absolute terms, total annual value of international trade has exploded – up 500% - between 1985 and 2015 Why International?
- 7. Global payroll administration is the sum of all activity required to coordinate and manage the operation of payrolls, in more than one country, for a single employer. Global payroll administration includes: Collection and distribution of data required to calculate payroll (earnings, deductions, net pay, tax liabilities) Completion and filing of employee and employer compliance Remittance of funds to statutory authorities Delivery of net pay to employees Accounting and management information reporting Compliant operation with global regulatory frame Global Payroll Overview
- 8. Global Payroll Overview Global Payroll Process Fundamentals Global ERP (Global Programs, Management Reporting, Accounting, Analysis) Country 3 ICP Gross-to-Net Payroll Processing Country 2 ICP Gross-to-Net Payroll Processing Country 1 ICP Gross-to-Net Payroll Processing Global, Regional, Updates Local Compliance Employee Payslips Local Management Reports Local Accounting Reports Payroll Data Sources Payroll Processing Payroll Driven Reporting Local National Updates Local National Updates Local National Updates
- 9. Global Payroll Strategy: Organizational Setup Organization Resources Process/ Workflow Technology Administrative Policies Performance Measurement
- 10. Global Payroll Operations Structure Governance & Global Payroll Program Management COUNTRY A PAYROLL PROCESSING COUNTRY B PAYROLL PROCESSING COUNTRY C PAYROLL PROCESSING GLOBAL PAYROLL PROGRAM MANAGEMENT Governance PEO
- 11. Global Payroll Program Governance Global Payroll Governance Payroll Treasury Legal Accounting Finance Tax Mobility Comp & Benefits HR
- 12. Global Payroll Program Governance Responsibilities 1. Decide program management model 2. Approve program budgets 3. Approve relevant policies Mobility Employee vs contractor 4. Tax and legal opinions 5. Approve accounting protocols 6. Execute contracts • Outsourcing • BPO • Aggregator • ICP • Technology 7. Approve performance standards 8. Approve treasury strategies
- 13. Global Payroll Program Management Conducting the Payroll Orchestra
- 14. Global Payroll Program Management: Responsibilities 1. Seat on governance team 2. Monitor/measure program performance 3. Compliance with privacy framework 4. Vendor sourcing and management 5. Global data management and reporting 6. Integration of global and local technology platforms 7. Local compliance oversight 8. Key role hires 9. Ensure effective allocation of roles and responsibilities 10. Ensure right skills and competencies are in place 11. Expatriate program and policies integration 12. Net pay strategies/delivery for expatriates 13. Seat on new country implementation team 14. Non-local compensation and benefits updates
- 15. Payroll Program Management Skills and Competencies 1. Program management 2. Vendor management 3. Global technologies 4. Foreign exchange 5. Culture 6. Country registrations 7. Tax treaties 8. Basics of international employment law 9. Expatriate policies 10. Expatriate-related law o Section 911 o RAs vs. NRAs o Special rules for certain visas 11. Privacy 12. OFAC 13. AML If your global payroll function lacks any of these skills or competencies, your choice is to train or outsource
- 16. In Country Payroll Processing
- 17. Responsibilities of In- Country Processing Operation Responsibilities 1. Compensation/ benefit updates 2. Joiners/leavers 3. Gross-to-net calculations 4. Tax remittances 5. Local compliance 6. Net pay 7. Expatriate processing 8. Payslips 9. Integration with global systems/processes
- 18. Global Payroll 2. Global Payroll Strategy
- 19. Global Payroll Operating Model Alternatives Relevant Attributes Some relevant attributes to consider: Maturity of global payroll program Size of organization Centralized/decentralized Functional/regional Shared services Number of locations Volume of employees outside US/in each location Availability of “fit-for-purpose” technology Availability/capability of resources Inclination to outsource (generally or, specifically, payroll)
- 20. Responsibilities of In-Country Processing Operation New to Global •Multiple service providers and technologies •Uneven resource quality country to country •Difficult to gather credible data and consolidate Growing & Gaining Experience •Maturing governance •Global program management evolving •Reporting requirements set •Payroll process aggregation Mature •Functioning governance •Global service standards •Shared services, BPO, selected managed payroll services •Global systems integration •Business intelligence and full reporting
- 21. Governance Responsibility always remains with organization Program management Functional Regional Shared services Shared with aggregator Outsource to Business Process Outsourcer (BPO) Processing Internal Outsourced Locally Aggregator BPO Global Payroll Operating Model Alternatives
- 22. Global Payroll Operating Model Alternatives Internal In-Country Processing In-Country Processing Program Management PEO Governance
- 23. Global Payroll Operating Model Alternatives Aggregator or Regional Processor Program Management In-Country Processing PEO In-Country Processing PEO In-Country Processing In-Country Processing Aggregator or Regional Processor Governance
- 24. Global Payroll Operating Model Alternatives Business Process Outsourcer COUNTRY A PAYROLL PROCESSING COUNTRY B PAYROLL PROCESSING COUNTRY C PAYROLL PROCESSING BPO Program Management Governance
- 25. Global Payroll 3. Locals Versus Expats
- 26. Local National Payroll Local Employment Law CultureDifferent Fiscal Year Ends Pay FrequenciesLanguage Social Security & other Taxes Compliance Requirements CurrencyEquity Reporting
- 27. Expatriate Payroll 2 Reporting Jurisdictions Culture Expat Policies and Tax Equalization Inconsistent Pay Frequencies Language Certificates of Coverage Compliance Requirements Multiple CurrenciesEquity Reporting
- 28. Global Payroll 4. Outsourcing & Technology
- 29. Outsourced Partners Match your needs with appropriate vendors • Administration o Service and technology • Capabilities o Local processing in country o Service of expats o Manage funds o Integration with existing company technology o Accounting reports • Risk Management o Length of contract o Data security o SSAE/ISO compliance o Who takes responsibility for local compliance o Who takes responsibility for ICP management
- 30. • Local processors • Regional aggregator • Many countries in a region • Global aggregator • Any country • Business process outsourcer Outsourced Partners
- 31. • Global data repository • Global compensation and benefit programs • Joiners/Leavers • Expatriates • Global policies A Word About Technology HRMS Global Payroll Data Management • Accepts joiners/leavers/updates/global demographic changes • Translates changes into various currencies • Returns local GTN data • Flexible, detailed reporting • HR, Management, Accounting, Treasury Local Payroll Systems Local Payroll Systems • Local GTNs • Local compliance reporting • Payslips • Accept data from Global Data Management System and report back to it
- 32. • Efficient, secure data management • Reporting • Most Important: Program Management • What payrolls do you manage • Where are they in the payroll process • Who is managing your payrolls • Real time reporting What Global Payroll Technology Should Do for You
- 33. State of Payroll Snapshot
- 34. Global Payroll 5. New Country Startup
- 35. Opening a New Country New Country Hit Team Payroll Treasury Legal Accounting Finance Tax Mobility Comp & Benefits HR
- 36. 1. Contract with Legal Partner, if applicable 2. Employment Contract, if applicable 3. Work Permit, if applicable 4. Contract with Payroll Partner, if applicable 5. Compliant Payroll Set-Up In Country 6. Systems Set-Up 7. Treasury Process 8. Payroll Calendar 9. Pay Slip/ESS 10. Reporting Requirements 11. Testing/Parallel Pay Run 12. Go Live! New Country Payroll Setup 12 Step Process
- 37. New country implementations are a team effort Allocate responsibilities accordingly Source strong partners New country startups are a competency You will get better at them each time you do a new one Do your parallels – Don’t let stakeholders rush you Measure twice… New Country Payroll Setup
- 38. Global Payroll 6. Best Practices
- 39. The 5 Key Global Payroll Challenges… 1. Knowing what you don’t know 2. Access to relevant information 3. Expertise/resources 4. Technology 5. Responsibility must match authority …And how to manage through them
- 40. 1. Train up/Join APA/GPMI/GPA 2. Get buy-in on a governance team 3. Find good vendor/partners 4. Gain vendor management competencies 5. Build a strong new country hit team Best Practices