Global Payroll Association (GPA) teamed up with SmugMug, ADP and Global Upside for this webinar where you will learn how to take a practical approach to global payroll accounting, tips and tricks, accruals, reporting and withholding obligations and how they differ from country to country. For more info contact us at info@globalupside.com

1. Welcome to the Global Payroll Association
Thank you for joining

2. Please feel free to ask us questions during the webinar, we will have 10 minutes at the end to answer these.
You can type your questions in the chat box or you can email them to webinars@globalpayrollassociation.com
Housekeeping

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Global Payroll: Taking a Practical Approach

4. Ragu Bhargava, Co-Founder & CEO, Global Upside
Ragu and his team at Global Upside help companies tackle accounting, payroll, HR, and
compliance challenges in 90+ countries. Ragu goes by the mantra “impossible is not in my
vocabulary” and has helped Global Upside clients successfully navigate some of trickiest business
environments. In his previous avatars, Ragu was CFO at ActivIdentity (NASDAQ:ACTI) and held
leadership positions in several companies including Deloitte and NetIQ (NASDAQ: NTIQ), where he
helped the company grow from $20 million to $300 million+ in revenue.
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Founded 1999
Integrated accounting, payroll, HR, tax, compliance services
Consolidated services delivered via single point of contact in your time
zone, 24/7 support
Serves both startups and established multinationals Clients including
A10 Networks, Aruba Networks, 8x8, Enphase Energy, Real Networks,
Rhapsody, Zillow, SmugMug and many more.
Global Upside Footprint

5. Ivan Makarov, VP of Finance, SmugMug
Ivan Makarov is the Vice President of Finance at SmugMug, photo sharing and e-commerce platform
for photographers, where he’s been there for the last five years. In his capacity at SmugMug, he’s been
responsible for a wide range of responsibilities, including leading Finance, Accounting, Treasury and
Tax functions at the Company.
Prior to SmugMug, Ivan worked with PwC and Ernst & Young, as part of their Tax practice, where he
performed various consulting and compliance services for a variety of tech clients.
He holds a B.S. and Master degrees in Accounting from Brigham Young University.
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Over a billion photos
Unlimited storage
Tools to take your photos to the next level
Showcase, share and sell with SmugMug

6. Wes Rihani, Multi National Account Sales, ADP
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Wes Rihani is a Global Business Consultant with ADP with over 25 years of deep domain expertise
in Human Capital Management including Payroll & Time/Labor Management. He has worked with
mid-size and large multi-national corporations identify total cost of ownership and develop
comprehensive HCM solution architecture and process engineering to improve on organizational
effectiveness.
Most recently, Wes has led a series of speaking engagements across the country on “the Art of
Global Payroll Transformation.”
Serving more than 650,000 clients in 112 countries
ADP Streamline offers multi-country payroll and HR services solutions via a single vendor
Average client tenure of about 11 years
More than 67% of Fortune 500 companies and more than 80% of Fortune 100 companies
use at least one of ADP’s services

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Key Considerations for Global Companies
Location
Footprint (Small or Large?)
Entity Setup / Activities
Finding the right talent
Hiring and Employment Law
Tax and Accounting Support
Managing a global operation – centralize?
Compliance

8. Setup and Strategy
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Plan for growth?
Permanent Establishment
(PE) Risks
Intellectual Property (IP)
Considerations
Management Support
/Centralization
Where to? Start up Activities
Representative Office
Branch vs. Subsidiary
Payroll Setup
Money Movement
Accounting Setup
Tax Considerations

9. Company Law Compliance
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Registered Office
Resident Director
Substance Over Form (Tax Structure)
Data Protection Registration
Taxes: Payroll, VAT, Income, Others
Statutory Audit
Annual Reports

10. Global Payroll: Key Consideration, Compliance
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Not just payment of net payroll
Taxes, net pay computation
Payment of taxes
In-kind benefits: taxable or not?
Many reporting requirements besides W-2 or taxable wages e.g. fringe benefits
Pay slips: content, format and delivery (snail mail, electronic or both)
Coordinating with other functions: HR, talent acquisition, treasury
Pay frequency: once, twice, or advance
Payment before vacation

11. Country Focus: China
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Unique by jurisdiction (National, Provincial, District,
City)
Housing provided by employers and regulations vary
from region to region
Workers who have worked more than one year are
entitled to 5 days of leave

12. Country Focus: Brazil
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13th Month (Remember to accrue)
Electronic reporting - new requirement in the last 12
months
Union dues - deductions of one day of compensation
for members

13. Country Focus: Russia
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Employers required to maintain detailed working
hours records
Must be paid twice a month
Bi-lingual employment contracts

14. Country Focus: France
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Highly regulated working hours requirements
Payroll registrations take time (matriculation of
entity)
Complex pay slips: over 40 data fields

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Global Payroll Challenges
SmugMug is an internet-based business
A good portion of our workforce is remote
Need to be on top of all tax and legal challenges that come with our kind of setup
We also have to look for employees abroad, as we often hire from our customers
It’s challenging to keep up with the new developments and changing laws overseas
Outsourcing/working with a vendor was a good option
It has helped us stay on track

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Plan Ahead
Educate your staff about the basic challenges of having a world wide human capital
Proactively identify and implement strategies to minimize risk
Discuss all issues with hiring managers

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Payroll Accounting : “Tips and Tricks”
How SmugMug setup payroll in Korea?
Understand all issues up front
Have a good handle on costs of living and what you should be paying your
employees
Be upfront about the challenges of relocating to a new jurisdiction

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Focus on Compliance
Thompson Reuters Top Compliance Trends 2016

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Latin America Payroll: Main Challenges
Compliance requirements
• Can be complex and difficult to interpret, with frequent changes
• Brazil, complex tax structure subject to frequent changes as governments respond
to developing economy
Detailed paper-based record keeping
• Colombia, forms for new starters physically have to be taken to the authorities to
be stamped and signed, and copies sent to payroll
• Argentina, employers register all employment relationships in a payroll book which
is inspected periodically by the Ministry of Labor
• Mexico, employees must sign their pay slips and organizations are obliged to keep
receipts for a minimum of five years as evidence that payments have been made

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Many HR administrative requirements have an effect on payroll
• Onboarding, separation processing, time and leave processing and records
management
• Requirement to sign pay slips, complex rules around hiring and firing in some
countries
• In Mexico, for example, some organizations choose to make final/severance
payments (“finiquito”) in front of a judge to avoid the risk of future claims from
departing employees

23. Copyright © 2016 ADP, LLC. Proprietary and Confidential.
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ADP Research Institute 2016
* Data reflects the first 6 months of 2016
Number of Legislative Updates by Country
Country 2013 2014 2015 2016*
Brazil 3 10 48 15
Canada 5 7 76 47
Mexico 1 76 52
United States 22 14 48 15
Total 30 32 248 129
Americas

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Global Funding
Governance Model should help determine funding options
Registrations sometimes require local bank accounts
• E.g. Australia
• Statutory laws sometimes require only the employer to move funds
• Laws against money laundering
• Lodgment Services in APAC – Social Benefits in China
Leverage an In Country Provider
• Access to client’s account
• Trust account
Global Money Movement Platforms
• Major Banking institutions

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Critical Business Issue
Multiple HR Systems - Increased Business Agility
PAYROLL
SYSTEMS 33
HR
SYSTEMS 31
GLOBAL HCM
DECISION MAKERS
SURVEY 2015
The average number of payroll and HR
systems /vendors and used worldwide has
increased ~ 50% from 2014-2015
Global
SOR
Talent
TLM
Compliance
Comp &
Benefits
Payroll

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Employee record flow
Integration
Payroll
Data
Employee
Master Data
Compensation
Data
Variable Data
Time &
Expenses
Global HR
System
of Record
Global or Local
Payroll Engines
and Partner
Network
Technology Considerations
Data Translation
Validation
Mapping
Localization

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Q&A
Ivan Makarov, VP of Finance, SmugMug
Wes Rihani, Multi National Account Sales, ADP
Ragu Bhargava, Co-Founder and CEO, Global Upside
If you have any questions for our panelists that we are not able to address in the Q&A please call
+1 (408) 913-9130 or email us at info@globalupside.com

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Thank You