Immedis' Chief Operating Officer, Richard Limpkin and Global Tax Director, Barry Flanagan join CEO of the Global Payroll Association, Melanie Pizzey in an informative and exciting webinar on using technology innovations to future proof your global payroll operation

1. How to Future Proof Your
Global Payroll Operation
Barry Flanagan Melanie Pizzey Richard Limpkin

3. Contents – Overview
1. Introduction – Global Payroll Challenges at a Glance
2. Working within your Limitations
3. Automating Repetitive tasks
4. Integrating the Complicated
5. Identifying the Relevant
6. Show them the Money!
7. Checklist
8. Q&A

4. Poll Question 1

5. The Changing Landscape of Payroll
 Companies expanding to multiple countries
 Not uncommon to find companies operating in 20+
countries with fewer than 100 employees per location
 Hard to justify the need for full payroll departments in
each country
 Tax Cuts and Jobs Act (TCJA) – should we be expecting further
expansion?
 Greater capacity and appetite for exchange of information
between national tax authorities across borders.
 Increased focus on previously neglected areas and sectors
such as higher education, not-for-profits, and charities.
Recent examples of this in China

6. Key Factors Impacting the Global Payroll Function
 Ensuring compliance with local country payroll reporting and
withholding
 Implementing global processes and controls
 Establishing a programme and process that has a favourable
response from the employee and addressing employee
enquiries
 Keeping abreast of government legislative changes income
and payroll tax, immigration, and social security data

7. Positioning Global Payroll as a Strategic Function
• Payroll is perpetual and cyclical but
dynamic
• Delivery is undergoing disruptive change
• Advent of Business Intelligence through
payroll data mining
• Bespoke replicable reporting
• Specialist - Board of Director level
interaction

8. Working within your Limitations
 Slight play on the classic…
… as no payroll department has
unlimited budget
 Time vs.
 Quality vs.
 Quantity
Time
QuantityQuality
QUANTITY
QUALITY
TECHNOLOGICAL ENHANCEMENT
However, we all know that in
payroll time is not a variable…
So what is the real issue

9. Poll Question 2

10. Automating Repetitive Tasks

11. IMMEDISGLOBAL
PAYROLLCYCLE
TECHNOLOGY
INNOVATION
INPUT COLLATION
Automation of input retrieval
(on demand)
Validation of inputs through RPA in
real-time, with immediate feedback
TECHNOLOGYDEPLOYMENT
INPUT COLLATION PAYROLL PROCESSING REVIEW FUNDING
Based on what has already occurred Based on what is planned to occur, but is subject to change
PAY
TYPICALGLOBAL
PAYROLLCYCLE
PAYROLL
PROCESSING
REVIEW
Integrated in-country engine
consolidation
Validation of results through RPA in
real-time, with immediate feedback
FUNDING PAY
Integrated banking and treasury
services with multi-rail access
Web service treasury integration and
access to new payment rails
Time impacted by change and uncertainty is reduced
EFFECT
Cut-off data for changes is later in
each payroll cycle
Time for customer review and
approval of payroll increased
Time for customer review and
approval of payroll increased
Technology Innovation in Validation

12. What the Future Looks Like

13. Integrating the Complicated

14. Integration Maturity Spectrum
5 WEB SERVICES4 AUTOMATED3 STRUCTURED DATA2 FLAT FILE EXCHANGE1 MANUAL UPLOADS0 NO INTEGRATION
Advanced Push / Pull
Self managing and correcting
on demand, real-time data
exchange.
Scheduled & Repeatable
Self operating, but requires
administration and
monitoring.
Stronger Data Structure
More resilient data integrity,
but with basic exchange
protocols.
Defined File Exchange
Rigid data structures, hard to
manage and update, difficult
to change, highly prescribed.
Reactive Uploads
Some prescriptive uploads of
data can be achieved
manually.
Segregated Systems
Passing information is
manual and error prone.
ACCURACY SECURITYSPEEDRELEVANCE CONFIDENCE
XML or JSON over RESTful web
services.
RTI via HMRC.
XML over SFTP with auto
extract, encryption and
sending.
XML-type data manually
uploaded or exchanged.
CSV or Excel type fixed
column/width/tab file
exchange.
Download a file to desktop and
import into a system.
INTEGRITY DATA PROTECTIONPERFORMANCE
File Transfer
Application
Program
Interface
(API)
Web
Services
(WS)

15. Country Specific Complexities
 Countries have different
local/cantonal, state/provincial,
national, and social tax remittance
legislation. Some considerations are,
but not limited to:
 Brazil: Visa type will impact which
individuals working in Brazil will
need a portion of the home
country payroll paid out of Brazil
 Germany: “Church’’ tax,
percentage varies across Germany
 Canada: Imposes taxes on the first
day in country unless a waiver has
been applied for in advance
 China: Registering entities in
different tax districts.
 France: Assuring that the pay
statement is correct as this is a
legal document which can attract
legal action by the employee if
incorrect

16. Poll question 3

17. Identifying the Relevant
How to see ‘The wood from the trees’

18. Data Analytics Maturity Spectrum
5 INTEGRATED4 MEASURED3 DEFINED2 REPEATABLE1 AD-HOC0 NO INSIGHTS
Prescriptive Analytics
Arming the business with
foresight
Predictive Analytics
Enabling the business with
insight
Strategic Analytics
Allowing the business to
manage current plans
Advanced Reporting
Focussing on hindsight
Reactive Reporting
Concerned with current
issues
Informational Black Hole
Obtaining basic information
is a challenge
PERFORMANCE INSIGHTSPEEDRELEVANCE CONFIDENCE
Singular corporate analytics
platform and vision across all
needs.
Normalised, multi-
jurisdiction and currency
singular analytics and
insights.
Consistent financial reporting
across multiple jurisdictions.
Gross to net reports per
country.
Payment listing reports.
Tax reconciliation reports.
Audit requests.
Highly ineffective to service
informational needs.

19. Data Analytics & Business Intelligence
Understand your organisations positioning
on the Analytics Maturity Spectrum
Plan your move from the “Left”
to the “Right”
• Single source of payroll data
globally.
• Integration of all key
components:
• Inputs vs.
• Periodic results vs.
• Historical results.
• Global Data Management
Framework (DMF)
Best Practice
Integrated
Repeatable
Multi-source
Automated preparation
Noise reduction
Real-time
Scalable

20. Data Analytics & Business Intelligence

21. Data Analytics & Visualisation
Ide ntif y the Outlie rs
Find them, without the need to dig for them, make them stand out, like there is
nothing else on the page

22. Risk Focused Approach

23. Poll question 4

24. Show Them the Money
Getting colleagues paid

25. What We All Deal With in Global Payroll
• The biggest legacy technology infrastructure in
the world is…
… the global banking framework.
• Need to pay people all over the world...
… despite the banking systems available.
• Good progress made…
… but only locally International Automatic
Clearing House (iACH) such as Faster Payment
Service (FPS)
• High overall percentage of payroll cycle time.
 Leading-edge technical integration with
banking and treasury partners.
 Modern rails…
… days becomes minutes.
… technology becomes the enabler (e.g.
mobile)
 Global compliance framework...
… self service instantaneous receipting.
THE CHALLENGES THE SOLUTIONS

26. Poll question 5

27. Choosing the Right Payroll Solution
 Decision factor: who can help me be compliant in the
countries I am operating in (cost cutting should not be the
primary consideration)
 GEO/GEC
 Consolidation of the global payroll function
 Benefits of consolidation include: economies of
scale
 Single point of contact
 Access to an expert team experienced in delivery of
international payroll
 The right person becomes an interpreter or
translator on your business’ behalf

28. Key Steps to Global Payroll Success
 Choose a payroll partner not a payroll processor
 Service led approach
 Technology enabled approached
 Ensure scalability
 Match your organisation’s needs to your payroll
partner’s offering

29. Q & A
Immedis.com