Immedis US President of Operations Dave Leboff presented "Recognizing and Managing Through Global Payroll Challenges" on the 17th of August 2018 at the APA San Francisco Chapter Event.

1. Recognizing and Managing Through
Global Payroll Challenges
Presented to: APA – San Francisco Chapter
Date: August 17, 2018
Presented by: Dave Leboff, President, US Operations – Immedis, Inc.

2. Immedis in
numbers
Local knowledge.
Global reach.

3. International
Payroll
Solutions
Fully managed global
payroll services
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. Overview
2. Definition
3. Complexities & Challenges
4. Organization Attributes
5. Basic Structural Model
6. Model Variations
7. Choosing the Right Model for Your
Company
8. Expatiates/Locals
9. Best Practices
10. Questions
Agenda

5. Global Payroll
Overview

6. Global Payroll
Overview In 2016 the US engaged in almost $5Trillion of Global
Import and Export activity
Global payroll operations are central to effective
international workforce management, a key to keeping
worldwide business engines running smoothly

7. Global Payroll
Definition

8. Global Payroll
Overview
 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

9. Global Payroll
Overview
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

10. Global Payroll
Complexities and Challenges

11. Complexities
and Challenges
 Some of the critical challenges that
managers of global payroll operations must
contend with
 Keeping up with Local Payroll Law Changes
 Accurate, Timely Payroll Reporting
 Vendor Selection and Management
 Technology
 Funds Management (net Pay, Tax Remittance)
 Training for Staff
 Meaningful Performance Measures/KPIs
 Accurate Timely Management Reporting
(accounting, other)
 Governance
 Working Knowledge of Global Regulatory
Framework (GDPR, FCPA, Anti-terrorist, Anti-
money laundering)

12. Global Payroll
Program Attributes

13. Organizational
Setup
Organization
Resources
Process/
Workflow
Technology
Administrative
Policies
Performance
Measurement

14. Global Payroll
Basic Structural Model

15. Global Payroll
Operations
Structure
COUNTRY A
PAYROLL
PROCESSING
COUNTRY B
PAYROLL
PROCESSING
COUNTRY C
PAYROLL
PROCESSING
GLOBAL PAYROLL PROGRAM MANAGEMENT
Governance
PEO

16. Global Payroll
Program
Governance
Global
Payroll
GovernancePayroll
Treasury
Legal
Accounting
Finance
Tax
Mobility
Comp &
Benefits
HR

17. Global Payroll
Program
Governance
 Decide program
management model
 Approve program
budgets
 Approve relevant
policies
 Mobility
 Employee vs contractor
 Tax and legal opinions
• Approve accounting
protocols
• Execute contracts
– Outsourcing
• BPO
• Aggregator
• ICP
– Technology
• Approve performance
standards
• Approve treasury
strategies

18. Global Payroll
Program
Management
Conducting the
Payroll Orchestra

19. Global Payroll
Program
Management
 Seat on governance team
 Monitor/measure program
performance
 Compliance with privacy
framework
 Vendor sourcing and
management
 Global data management
and reporting
 Integration of global and
local technology
platforms
 Local compliance
oversight
• Key role hires
• Ensure effective
allocation of roles and
responsibilities
• Ensure right skills and
competencies are in
place
• Expatriate program and
policies integration
• Net pay
strategies/delivery for
expatriates
• Seat on new country
implementation team
• Non-local
compensation and
benefits updates

20. Payroll Program
Management:
Skills and
Competencies
• Program management
• Vendor management
• Global technologies
• Foreign exchange
• Culture
• Country registrations
• Tax treaties
• Basics of international
employment law
• Expatriate policies
• Expatriate-related
law
• Section 911
• RAs vs. NRAs
• Special rules for certain
visas
• Privacy/GDPR
• OFAC
• AML
If your global payroll team lacks any of these skills or
competencies, your choice is to train or outsource

21. In Country
Payroll
Processing

22. Responsibilities
of In-Country
Processing
Operation
 Compensation/
benefit updates
 Joiners/leavers
 Gross-to-net
calculations
 Tax remittances
 Local compliance
• Net pay
• Expatriate
processing
• Payslips
• Integration with
global
systems/processes

23. Global Payroll
Model Variations

24. Global Payroll
Operating
Model
Alternatives:
Program Management
Remains Fully Internal
In-Country
Processing
In-Country
Processing
Program Management
PEO
Governance

25. 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

26. Global Payroll
Operating Model
Alternatives:
Business Process
Outsourcer
COUNTRY A
PAYROLL
PROCESSING
COUNTRY B
PAYROLL
PROCESSING
COUNTRY C
PAYROLL
PROCESSING
BPO Program Management
Governance

27. Global Payroll
Choosing a Model that Works
for Your Organization

28. 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)

29. 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

30. Global Payroll
Locals Versus Expats

31. Local National
Payroll
Local
Employment
Law
CultureDifferent Fiscal
Year Ends
Pay
FrequenciesLanguage Social Security &
otherTaxes
Compliance
Requirements CurrencyEquity
Reporting

32. Expatriate
Payroll
2 Reporting
Jurisdictions Culture
Expat Policies
andTax
Equalization
Inconsistent
Pay
Frequencies
Language Certificates of
Coverage
Compliance
Requirements
Multiple
Currencies
Equity
Reporting

33. Global Payroll
Outsourcing & Technology

34.  Reporting and Analytics
 Integration
 Data Validation
 Process Automation
 Information Security
What Global
Payroll
Technology
Should Do for
You Global
Information
Risk
Management

35. Global Payroll
Best Practices

36. Best Practices
 Gain international payroll
competencies
 Join GPMI
 Train up
 Network with peers
 Take your seat on the
governance team
 Find strong vendor – partners
and technologies

37. Questions?

38. Thank You
www.immedis.com