- Payroll is a critical function that manages large expenses but is often seen as low risk. However, lack of improvement and changing regulations can increase risks.
- Technological advancements provide opportunities to improve efficiency and access valuable employee data, but many organizations have outdated systems.
- A strong governance framework is needed to manage risks like fraud, errors and non-compliance with changing regulations. Regular reviews of capabilities are important.
- Interpreting varying industrial agreements adds complexity, so payroll teams need support and training. Globalization further increases these challenges.
It’s not a secret that the need to modernize traditional finance operations and evolve into a “Digital Finance” organization has become a key priority for finance leaders.
In this video recap of the webinar held on 12/11/ 2019; Raul Vega, Auxis CEO, discussed the key risks and challenges organizations typically face as part of their transformation journey, and how to develop and execute a strategy that provides the business case and outcomes you expect based on your specific company size and needs.
What was covered:
- What does Modern Finance really mean?
- Digitization as a Key Element of the Modern Finance Organization
- Most Common Tools you should be implementing as part of your Digital Finance journey
- What’s driving RPA’s growth?
- Implementation Strategies & Alternatives
- How Outsourcing can help finance executives self-fund their Digital Finance Strategy and drive faster outcomes
Validating and Promoting HR Strategies with Data and AnalyticsMark Lawrence
CIPD HRBP Conference Address, November 2014 (London)
Disclaimer: Mark Lawrence is no longer an employee of IBM. This content was presented with permission, to the CIPD community; although IBM materials feature in this presentation, the views and opinions reflected belong to Mark Lawrence. To avoid compromising confidentiality, details relating to use cases have been removed; remaining material should be publicly available (references are included).
When growing a company, any number of small tasks have the potential to snowball into a mountain of work if not handled in a timely manner. One area you definitely don't want to ignore? HR. From onboarding and compliance to benefits and beyond, letting these tasks fall by the wayside means risking an avalanche of problems.
Want to sidestep the perfect HR storm? Keep reading to find out how.
The Future of Finance in a World of Global Digital Transformation3Sixty Insights
Blue Hill Research's Hyoun Park explores how the Future of Finance will change as Digital Transformation, the Internet of Things, the Subscription Economy, and microservices start to take over the business world.
Managing a professional services firm is hard work. Firm leaders must juggle marketing, business development, client service, staff recruiting, development and retention to a successful outcome for everyone involved. There is one thing that
firm leaders must feel comfortable with that links all of these firm management initiatives together — technology.
It’s not a secret that the need to modernize traditional finance operations and evolve into a “Digital Finance” organization has become a key priority for finance leaders.
In this video recap of the webinar held on 12/11/ 2019; Raul Vega, Auxis CEO, discussed the key risks and challenges organizations typically face as part of their transformation journey, and how to develop and execute a strategy that provides the business case and outcomes you expect based on your specific company size and needs.
What was covered:
- What does Modern Finance really mean?
- Digitization as a Key Element of the Modern Finance Organization
- Most Common Tools you should be implementing as part of your Digital Finance journey
- What’s driving RPA’s growth?
- Implementation Strategies & Alternatives
- How Outsourcing can help finance executives self-fund their Digital Finance Strategy and drive faster outcomes
Validating and Promoting HR Strategies with Data and AnalyticsMark Lawrence
CIPD HRBP Conference Address, November 2014 (London)
Disclaimer: Mark Lawrence is no longer an employee of IBM. This content was presented with permission, to the CIPD community; although IBM materials feature in this presentation, the views and opinions reflected belong to Mark Lawrence. To avoid compromising confidentiality, details relating to use cases have been removed; remaining material should be publicly available (references are included).
When growing a company, any number of small tasks have the potential to snowball into a mountain of work if not handled in a timely manner. One area you definitely don't want to ignore? HR. From onboarding and compliance to benefits and beyond, letting these tasks fall by the wayside means risking an avalanche of problems.
Want to sidestep the perfect HR storm? Keep reading to find out how.
The Future of Finance in a World of Global Digital Transformation3Sixty Insights
Blue Hill Research's Hyoun Park explores how the Future of Finance will change as Digital Transformation, the Internet of Things, the Subscription Economy, and microservices start to take over the business world.
Managing a professional services firm is hard work. Firm leaders must juggle marketing, business development, client service, staff recruiting, development and retention to a successful outcome for everyone involved. There is one thing that
firm leaders must feel comfortable with that links all of these firm management initiatives together — technology.
How to Bring About Finance Transformation on Your Own TermsWorkday, Inc.
In this deck, experts from PwC and Workday explain how finance leaders can use automation, artificial intelligence, and analytical skills to help their teams adapt to rapid change.
Doris Reconnect 2016 session
This session covers case studies for automating employee onboarding in extreme conditions with very high volume (over 1 million hires per year) and highly secure environments (federal government). Though most customers will never need to achieve such onboarding volume or require such high security, all PeopleSoft customers can learn valuable lessons they can apply for their onboarding needs.
Type: Case Study
Track: Human Capital Management
Audience: Technical/Functional
Product Lines: PeopleSoft
How competitive is your workforce compared with that of other companies? This is a critical question that, up until now, could only be answered by third-party, survey-based benchmarks that are often out-of-date, based on small sample sizes, and lacking the right detail for you to take action. Benchmarking from ADP offers the unmatched ability to compare your workforce data to market averages, based on real, up-to-date anonymized and aggregated HR and pay data from ADP’s U.S. client base of 24 million employees.
Welcome to the automation age. The next great revolution. Rapid advances in technology, new disruptive companies, and globalisation have significantly increased customer expectations and competitive pressures. Automation offers the opportunity for companies to improve customer experience, employee productivity and operational effectiveness. While automation is not new, advances in artificial intelligence, robotics and other technologies are enabling a future where machines not only perform a range of human work activities but profoundly change the future of work.
The most successful and innovative companies will understand the critical role of automation for digitising core processes and delivering new customer experiences. These companies will harness automation to improve quality and agility, lower costs and focus the workforce on high value activities that delight the customer. Companies that are able to achieve this will improve customer loyalty and employee engagement, and open up new revenue opportunities while driving operational efficiencies. This will lead to improved brand, market position, and profit.
Topics covered in this presentation include:
What are the trends driving the automation age at work?
What are the current and future automation capabilities?
How is automation being used at work today and tomorrow?
What are the skills and jobs of the future?
How to get started and succeed in your automation journey?
Capgemini Consulting: Using Digital Tools to Unlock HR’s True PotentialCapgemini
In this Capgemini Consulting research report we look at why talent has gone digital and HR has not. We also outline how HR can unlock its true potential through digital tools.
For more than 30 years, Sage has been helping midsized businesses in all industries choose and implement human resource and payroll solutions. Our experience has taught us that when people begin searching for human resources management software, they find the process overwhelming and need help identifying their needs, determining the questions they should ask, and gathering the vendor information they need to effectively compare and select the right solution.
We believe expertise unshared is knowledge wasted, so we’ve distilled what we’ve learned from our over 12,000 Sage HRMS customers and created this HR software buyer’s guide with useful information you need to know, including, recent trends in human resources and HR technology, top ten considerations for HRMS, a key software capabilities checklist, and how to evaluate the company behind the product.
We want to make the HR software purchase process as painless as possible and help you find the right HR software solution for your needs whether that solution is Sage HRMS or another.
The SMB and accounting tech ecosystems are booming, to say the least. Given that you’re a trusted advisor in the financial well-being of your clients, the time is right for using technology to enhance your internal operations as well as growth opportunities.
Why HR Service Delivery Is Pivotal for Employee ExperienceWorkday, Inc.
Employee experience continues to be a top priority for the C-suite. And HR service delivery is a critical component of that experience.
In this slide deck, learn how Workday can help you take a more people-centric approach to HR service delivery to make your people feel more connected and supported.
The FIRM & IBM : Rewriting the rules for the digital ageEmma Mirrington
Deloitte’s Human Capital professionals leverage research, analytics, and industry insights to help design and execute the HR, talent, leadership, organization, and change programs that enable business performance through people performance. Visit the Human Capital area of www.deloitte.com to learn more.
Companies of all sizes are struggling to manage the massive amounts of data related to human resource management. This program will examine the various solutions technology offers to deal with this challenge, and provide examples to increase department efficiency while adding strategic value to the business. The following objectives will be covered during this presentation:
- Learn about the current and future trends in HR technology, including Employee Self Service, Business Intelligence, and Social Media.
- Discover how to harness technology to make strategic business decisions
- Learn how to turn data into knowledge through Key Performance Indicators, Dashboards, and other metrics.
- Learn how to develop a solid business case for HR technology.
Successful organizations recognize employees are their most valuable asset. They are the heart and soul of your business. In turn, organizations spend a lot of time recruiting, training, and managing employees which is a signifcant investment. One of the best ways to protect your investment is to create engaged employees by communicating with them. Often.
Rethinking payroll performance: In-House vs OutsourcingBARRY ROSS
Our cloud based payroll solution combines a powerful payroll & web-based HR application along with the convenience of services typically offered by payroll outsourcing providers. Companies currently using payroll software for small business will benefit from the lower maintenance costs & improved security that our payroll solution has to offer.
CloudPay - Building a Business Case for Global PayrollCloudPay
When considering any enterprise technology switch, C-suite executives often find it difficult to see beyond the upfront costs of change management and implementation to the long-term benefits of a new solution... and nowhere is that more true than in payroll. This CloudPaper on ‘Building a Business Case for a Global Payroll Solution’ discusses how Payroll, HR, and IT teams can secure buy-in for new payroll solution by:
1. Outlining the true costs of their existing system;
2. Detailing their requirements of a more modern solution; and
3. Exposing the benefits and value of a move to the cloud.
To download the full report visit: https://www.cloudpay.net/resources/topic/cloudpaper
How to Bring About Finance Transformation on Your Own TermsWorkday, Inc.
In this deck, experts from PwC and Workday explain how finance leaders can use automation, artificial intelligence, and analytical skills to help their teams adapt to rapid change.
Doris Reconnect 2016 session
This session covers case studies for automating employee onboarding in extreme conditions with very high volume (over 1 million hires per year) and highly secure environments (federal government). Though most customers will never need to achieve such onboarding volume or require such high security, all PeopleSoft customers can learn valuable lessons they can apply for their onboarding needs.
Type: Case Study
Track: Human Capital Management
Audience: Technical/Functional
Product Lines: PeopleSoft
How competitive is your workforce compared with that of other companies? This is a critical question that, up until now, could only be answered by third-party, survey-based benchmarks that are often out-of-date, based on small sample sizes, and lacking the right detail for you to take action. Benchmarking from ADP offers the unmatched ability to compare your workforce data to market averages, based on real, up-to-date anonymized and aggregated HR and pay data from ADP’s U.S. client base of 24 million employees.
Welcome to the automation age. The next great revolution. Rapid advances in technology, new disruptive companies, and globalisation have significantly increased customer expectations and competitive pressures. Automation offers the opportunity for companies to improve customer experience, employee productivity and operational effectiveness. While automation is not new, advances in artificial intelligence, robotics and other technologies are enabling a future where machines not only perform a range of human work activities but profoundly change the future of work.
The most successful and innovative companies will understand the critical role of automation for digitising core processes and delivering new customer experiences. These companies will harness automation to improve quality and agility, lower costs and focus the workforce on high value activities that delight the customer. Companies that are able to achieve this will improve customer loyalty and employee engagement, and open up new revenue opportunities while driving operational efficiencies. This will lead to improved brand, market position, and profit.
Topics covered in this presentation include:
What are the trends driving the automation age at work?
What are the current and future automation capabilities?
How is automation being used at work today and tomorrow?
What are the skills and jobs of the future?
How to get started and succeed in your automation journey?
Capgemini Consulting: Using Digital Tools to Unlock HR’s True PotentialCapgemini
In this Capgemini Consulting research report we look at why talent has gone digital and HR has not. We also outline how HR can unlock its true potential through digital tools.
For more than 30 years, Sage has been helping midsized businesses in all industries choose and implement human resource and payroll solutions. Our experience has taught us that when people begin searching for human resources management software, they find the process overwhelming and need help identifying their needs, determining the questions they should ask, and gathering the vendor information they need to effectively compare and select the right solution.
We believe expertise unshared is knowledge wasted, so we’ve distilled what we’ve learned from our over 12,000 Sage HRMS customers and created this HR software buyer’s guide with useful information you need to know, including, recent trends in human resources and HR technology, top ten considerations for HRMS, a key software capabilities checklist, and how to evaluate the company behind the product.
We want to make the HR software purchase process as painless as possible and help you find the right HR software solution for your needs whether that solution is Sage HRMS or another.
The SMB and accounting tech ecosystems are booming, to say the least. Given that you’re a trusted advisor in the financial well-being of your clients, the time is right for using technology to enhance your internal operations as well as growth opportunities.
Why HR Service Delivery Is Pivotal for Employee ExperienceWorkday, Inc.
Employee experience continues to be a top priority for the C-suite. And HR service delivery is a critical component of that experience.
In this slide deck, learn how Workday can help you take a more people-centric approach to HR service delivery to make your people feel more connected and supported.
The FIRM & IBM : Rewriting the rules for the digital ageEmma Mirrington
Deloitte’s Human Capital professionals leverage research, analytics, and industry insights to help design and execute the HR, talent, leadership, organization, and change programs that enable business performance through people performance. Visit the Human Capital area of www.deloitte.com to learn more.
Companies of all sizes are struggling to manage the massive amounts of data related to human resource management. This program will examine the various solutions technology offers to deal with this challenge, and provide examples to increase department efficiency while adding strategic value to the business. The following objectives will be covered during this presentation:
- Learn about the current and future trends in HR technology, including Employee Self Service, Business Intelligence, and Social Media.
- Discover how to harness technology to make strategic business decisions
- Learn how to turn data into knowledge through Key Performance Indicators, Dashboards, and other metrics.
- Learn how to develop a solid business case for HR technology.
Successful organizations recognize employees are their most valuable asset. They are the heart and soul of your business. In turn, organizations spend a lot of time recruiting, training, and managing employees which is a signifcant investment. One of the best ways to protect your investment is to create engaged employees by communicating with them. Often.
Rethinking payroll performance: In-House vs OutsourcingBARRY ROSS
Our cloud based payroll solution combines a powerful payroll & web-based HR application along with the convenience of services typically offered by payroll outsourcing providers. Companies currently using payroll software for small business will benefit from the lower maintenance costs & improved security that our payroll solution has to offer.
CloudPay - Building a Business Case for Global PayrollCloudPay
When considering any enterprise technology switch, C-suite executives often find it difficult to see beyond the upfront costs of change management and implementation to the long-term benefits of a new solution... and nowhere is that more true than in payroll. This CloudPaper on ‘Building a Business Case for a Global Payroll Solution’ discusses how Payroll, HR, and IT teams can secure buy-in for new payroll solution by:
1. Outlining the true costs of their existing system;
2. Detailing their requirements of a more modern solution; and
3. Exposing the benefits and value of a move to the cloud.
To download the full report visit: https://www.cloudpay.net/resources/topic/cloudpaper
Over the past decade, a combination of new providers, technology, and capabilities have made global payroll administration a possibility – at least conceptually. The key stumbling block in this debate is the perceived need, on the one hand, for tailored services that are compliant with local regulations, and on the other hand standardization for cost reasons. So, where does that leave payroll?
Datamatics brings a heightened level of rigor to the HRO processes focusing on operational excellence, technology enablement and data-driven metrics allowing the organisation to focus on core issues such as talent management, training and learning operations.
A well-designed HR or payroll system is crucial for timely and accurate payment to employees. Connect Cloud HR offers tools like attendance, leave, payroll, recruitment, and performance management to enhance efficiency, productivity, and compliance. Automated payroll methods and cloud connectivity save time and money, while reducing errors.
In-house vs. Outsourced Payroll Processing: Separating Fact from FictionAdrian Boucek
By linking payroll, HR, talent, benefits and time & labor management, an integrated HCM solution can deliver all the perceived benefits of in-house processing with significant added advantages — including superior economies of scale, improved visibility, real-time processing, world-class security and protection against compliance risk.
Virtual Organization, Advantages of Virtual Organization, Disadvantages of Virtual Organization, HUMAN RESOURCE ISSUES IN VIRTUAL ORGANIZATION, TALENT MANAGEMENT, Work-life Balance, Six Sigma, HR Six Sigma Process
The challenges facing human resources (HR) executives have changed significantly over the past 10 years. Today, HR is an important part of overall corporate performance. This is driven by several factors, including the growing needs to: attract and retain talent; implement strategic succession planning; access and analyze workforce data; and manage a culture that enables multi-generational workforce expectations. Microsoft has a technology platform that HR decision makers can use to address these challenges and deliver business impact.
Many of today’s business challenges can reveal a number of weaknesses throughout your back-office. You need only be aware of the signs. Increased market and competitive forces are driving more and more business executives to evaluate their support functions such as procurement, finance, human resources and information technology. Service level agreements, complex billing requirements, poor data management and dispirit systems throughout these functions can bleed cash and quickly demotivate your workforce.
Change Your Mindset: The Key to Growing Your Accounting PracticeAggregage
In the accounting profession, the post-COVID business model is surely on everyone's minds. Unmistakably, the way to forge ahead will look different than in years past. The biggest mistake that a majority of companies are making in regard to growth is holding onto old conventions, paradigms, and practices.
Whether re-integrating back to in-office life or staying digitally connected through remote work, the first step in determining how to spur growth comes with reevaluating your company's willingness to change mindset.
Join David Bergstein, Chief Innovation Officer at Bergstein CPA, as he shares insight on the accounting landscape, new trends, and practical tips for reevaluating your company's positionality.
This session will cover:
• What it means to challenge tradition and change your company mindset
• How to make sure you are set up to be as productive and efficient as possible
• Best practices for choosing the tools you will utilize
• Methods to measure and track your success so you can watch yourself improve!
...and more! Everyone who attends will walk away with the knowledge of what to do to be successful in the "New Normal."
It is not easy for a company to handle the complexities of payroll, including the timely and accurate payment of all employees, deduction of appropriate taxes, and provision of paid time off.
2. Introduction to Making
Payroll Pay
Payroll is one of the most critical
functions in helping manage and
remunerate a workforce. An
organisation’s payroll function
often manages its largest expense
and, with recent technological
improvements, has the ability to
produce powerful employee
insight for management.
And yet, it is an area that seems to
be governed by the mantra -
“Payroll. No news is good news.”
At PwC, we have a vision to raise
the profile and potential of payroll.
Payroll is an area that is often not
properly serviced by a continuous
improvement mindset and
methodology. This can result in
organisations:
Each of these factors can increase
the cost and the time taken to
deliver payroll, limiting a payroll
function’s ability to add true value.
We believe that organisations
which view payroll as a low cost
compliance function are limiting
their ability to leverage the
valuable employee data and
insight that sits within the
function. Worse, the lack of a
continuous improvement mindset
can find an organisation exposed
to increased compliance costs,
employee dissatisfaction and
fraud risk.
In establishing the Payroll
Consulting practice, PwC has
brought together people with
practical payroll experience –
team members who have run
payrolls and shared service centres
for multi-national organisations.
Our team members understand
the challenges of successfully
managing a payroll function, and
also see the opportunities and
potential.
We are also pleased to have
launched the Payroll Consulting
practice in alliance with Australian
Payroll Association. In addition to
APA bringing more than 20 years’
experience in the Australian
payroll industry, our alliance
allows the Payroll Consulting
practice to access APA’s strong
vendor relationships and, through
the APA annual Payroll
Benchmarking Report, gives us the
ability to benchmark an
organisation’s true cost of payroll
against industry peers and like-
sized employers.
We are passionate about payroll.
We believe that payroll functions
have the ability to deliver real
value and insight to an
organisation, provided the
function can get the support to
help maximise the effectiveness of
their processes and technology.
I trust that you will enjoy reading
this paper and that it will give you
food for thought about the
opportunities, and the risks,
sitting within your own
payroll function.
Rohan Geddes
National Leader - Payroll
Consulting practice
• Using technology that
isn’t right for their
needs and that
requires significant
workarounds
• Running payroll
processes that are
disbursed amongst
too many different
departments and sites
• Being overly reliant on
the (often
undocumented)
knowledge of a few
key people; and
• Underinvesting in
regular training and
support offered to the
payroll function.
2 | Making Payroll pay | PwC
3. Overview
The objective for payroll has
always been a simple one – pay
your employees accurately and on
time. Payroll has historically been
seen as a low risk function,
generally automated (or
outsourced) – one which rarely
troubles the higher levels of
management, as long as it is
running smoothly. To that extent,
you probably haven’t given it a
great deal of management time
or attention.
This means that many
organisations are not accessing the
true value of payroll.
Technological advancements, the
power of data analytics and
changing employee demographics
provide the opportunity for
organisations to take a critical look
at their payroll function and
identify where there are potential
improvements, leading to cost
savings, increased efficiencies and
improved employee engagement.
For example, changes include:
• How, where, when and for
whom we work.
• How, where and when we
access information.
• How organisations use
technology to record, analyse
and report data.
This also means employment
turnover rates are higher than ever
before, as is greater workforce
mobility and flexibility.
Organisations should face up to
both the opportunities and
challenges facing payroll.
Technology now provides an
opportunity for payroll functions
to evolve and become valued
business partners. At the same
time, they still need to manage the
financial and reputational risks of
processing payroll late or
incorrectly, or of failing to adhere
to evolving data privacy and
protection regulations.
In this paper we look at the payroll
function and process through a
number of lenses, being:
• Payroll technology in the
Digital Age.
• Controls and Governance.
• Regulation and Compliance.
• Industrial instruments.
• Globalisation.
Our focus is not simply on the
compliance aspects of the payroll
process, but making sure that the
payroll function has strong
support, from a governance and
controls, technology and people
perspective.
The developments in payroll are
happening globally, and we believe
the discussions we raise in this
paper can be replicated in many
territories. Our view, and how we
help our clients, is not confined to
Australia.
Every year, Australia’s top employers make identified payroll errors
which exceed, on average, $4.4 million dollars per employer. Correcting
these errors adds cost to the payroll function and creates employee
angst in the workforce. Isn’t it time you took a closer look at your
payroll?
PwC | Making Payroll pay | 3
4. Payroll technology in the
digital age
In the past, digital meant
ecommerce. But the landscape has
changed – the rapid rise of social
media, smart devices, big data and
cloud computing has opened up
avenues to access data more
frequently from anywhere at any
time. At the same time, employees
are expecting and demanding
greater access to their information
and flexibility as to how it is
consumed and experienced.
Technology and social media are
making employees better
informed, more connected and
more vocal – get their payroll
wrong and with the power of social
media you, and the wider world,
will very quickly get to know
about it!
For many organisations, the
payroll system (or interface with
an outsourced providers system) is
not directly integrated with the HR
and Finance systems which drive
payroll inputs and manage the
outputs. Very few organisations
have transitioned to true cloud
based payroll platforms enabling
integration with other internal and
external systems.
The management of employee data
and payroll results could be
inadvertently transmitted or sent
via email or other non-secure
data exchanges.
With an increasing number of
payroll systems available, selecting
a new platform that meets the
requirements of the organisation is
sometimes seen as a very big
challenge. Identifying and
implementing a system that not
only fits the wider IT and business
strategy, but is capable of
unlocking the power of the data
held in payroll, is difficult and
often seen as too risky. With your
mobile phone plan, you will often
assess the price, data inclusions,
calls and texts available to get a
good deal. As the saying goes “If
you’re staying on the same mobile
plan for 5 years – you’re paying
too much”. The same can be said
for your payroll system –regular
reviews of system capabilities and
business requirements can provide
commercial value in identifying
better technology at a better value.
Don’t not look at Payroll because it
may be too risky. Undertake a
review, determine the value in
what is being delivered and
compare this to the market. You
would do it with an $80 phone
plan – why not a business system
that costs many times more than
that?
Maintaining good data is
increasingly important to ensure
good governance and control over
systems and processes. Using the
data available can also provide
insights into the workforce, help
drive key management decision
making and prevent opportunities
for under and over payments.
At the same time, your employees
expect you to act responsibly with
their personal information and to
respect their right to privacy. The
Privacy Act 1988, which regulates
how personal information is
handled, demands this too. Failure
to comply with the law can lead to
serious legal and financial
consequences and significant
operational challenges, such as
business disruption, financial
loss and damage to
brand and reputation.
Digital technology trends in Payroll
4 | Making Payroll pay | PwC
5. Questions to ask
• Does your current payroll
system fit into your overall
technology strategy?
• If your HR system is cloud
based-what interface do you
have to your payroll system and
how do the outputs link to your
finance system?
• Do you know the total cost of
salary and wages paid to
employees in the last
12 months?
• Have you analysed the cost of
running your global payroll
systems and number
of vendors?
• Do you have confidence that
your outsource provider can
deliver an end to end
payroll solution?
• Are you confident that you have
not over or under paid
employees in the last
12 months?
• Is your payroll data secure and
have you performed
penetration testing or tested
ISO compliance with
ISO 27001 (whether you
operate the payroll internally or
via an outsource provider)?
• How can you take advantage of
cloud technology to enable a
more resilient and efficient
payroll environment?
•
Rapid technological advancements have resulted in great opportunity for organisations to
review their current payroll technology and identify where there is potential to reduce
cost, improve efficiency and make better use of the data held within payroll. Companies
shouldn’t be reticent to review their payroll technology solutions.
Our View
PwC | Making Payroll pay | 5
6. Risk, regulation and compliance
It is rare for a payroll system to fail
completely, but there have been
well publicised examples of
organisations failing to process
their payroll on a timely basis and
the consequent impact across the
workforce.
Payroll is an organisation’s biggest
expense and carries inherent risk.
There is:
• Risk of fraud
• Risk of under or
overpaying employees
• Risk of underpaying
authorities.
Organisations require a robust risk
and governance framework to
ensure payroll is run without
creating areas of exposure from
either a workforce perspective or
from an authority’s perspective.
Organisations without good
processes and with a lack of
visibility over the payroll function
in place could be exposed to fraud
from those charged with
safeguarding payroll.
Understanding Payroll Risks
Organisations can ensure visibility
over the end to end process by
implementing the three lines
of defence:
• Management control
• Management oversight
• Independent review/assurance.
Ultimately, this allows
organisations to concentrate on
improving efficiencies and
reducing cost.
With regular legislative changes
and authorities such as FairWork
increasing the level of
investigations they undertake into
compliance, many organisations
are reaching a tipping point in
terms of their ability to keep up
with and accommodate the
challenges facing their payroll
function on a daily basis. Investing
time now to review the capacity
and capability of your payroll
function, systems and processes
will ensure it is resilient enough to
deal with these ongoing changes.
From an internal perspective, a
risk and governance framework
can generate benefits to the
business, such as providing
visibility and accountability over
the end to end process and
providing management reporting
insight. Having a comprehensive
understanding of payroll related
risks and defining how to address
those risks through an effective
payroll governance framework, is
central to building a sustainable
and resilient payroll function.
6 | Making Payroll pay | PwC
7. Questions to ask
• Have you assessed whether the
payroll knowledge and skills of
your payroll team are up to
date, particularly if you have
recently changed technology or
been through a
merger/acquisition
transaction.
• Do you have confidence in the
resilience of the systems and
processes that manage your
payroll data?
• Have you tested whether your
payroll meets current local
compliance obligations? Does
your payroll function have the
capacity/ability to take on the
increasing reporting burden
likely to be placed on it over
the next 3-5 years?
• Are payroll processes
documented with associated
standard operating procedures
and payroll checklists?
• Do you have sufficient
visibility on the level of
reputational and compliance
risks some of your payroll
arrangements might attract?
• Do you have confidence in the
security of your payroll data?
• What are the roles that have
access to payroll data?
Organisations need to take a holistic view of the payroll function based on a framework
that provides overall governance over payroll and related activities, through the ‘lenses’ of
People, Process, Technology and Governance.
Our View
PwC | Making Payroll pay | 7
8. Industrial instruments
A further complication for
Australian payroll is the variety of
industrial instruments that may
cover an employee population.
Enterprise Agreements (EA’s) are
negotiated between an employer,
their employees and their
employee’s bargaining
representatives. They contain the
minimum wage and working
conditions that employees covered
by the agreement are entitled to.
Employers can be obliged to
adhere to the terms of multiple
EAs, each of which can contain
different rates of hourly pay,
loadings, allowances and overtime.
All of these variances need to be
configured and tested within the
payroll system, including, in some
cases, time and attendance
applications – often within a very
short time frame between the
agreement being signed and the
first pay run in which employees
are entitled to new rates.
In addition, interpreting the
circumstances under which an
employee is entitled to certain
payments – such as overtime,
penalty rates, and certain
allowances – can be very
complicated. Without an electronic
Award interpreter (software
contained in all contemporary
time and attendance systems that
automatically calculates employee
entitlements, based on hours
worked), the interpretation for
payment often falls to the local
management or the payroll team.
Organisations need to ensure that their payroll team are kept full abreast of proposed
changes to EAs, and are given enough lead time to plan for and test changes within the
payroll system. It is also important that payroll team members are comfortable with
interpreting these agreements, which can be complex, and are provided with the
appropriate support and training to do so.
Our View
8 | Making Payroll pay | PwC
9. Questions to ask
• At what point in the EA
renegotiation process is the
Payroll team consulted and/
or informed?
• Is there a change control
process in place to manage
system, process,
communication and changes
out of EA changes that need to
be implemented?
• Do you have confidence that
EAs are interpreted correctly
and consistently?
• Do you use a Time &
Attendance tool to capture
employee data electronically
and do you use an electronic
award interpreter?
• How confident are you that the
hours worked by employees are
being paid according to the EA?
PwC | Making Payroll pay | 9
10. Globalisation and the impact on
payroll operations
89% of large employers expect international mobility to increase, but much of this increase will be through
short term assignments and international business travellers, rather than traditional long term assignments1.
Tracking individuals to determine their payroll obligations on a country by country basis is one of the hardest
challenges that organisations face in order to be fully compliant with multi-territory tax withholding rules.
Global mobility adds complexity to the payroll process
1 Moving People with Purpose – Modem Mobility Survey, PwC, October 2014.
10 | Making Payroll pay | PwC
11. As emerging market economies
evolve, so does the level of payroll
& employment tax obligations.
This is evidenced by the growth in
social security systems and
emergence of Provident Funds in
countries such as Brazil, China and
India. At the same time,
organisations are dealing with
changing workforce demographics
and flexible working
arrangements. Employees on
casual contracts, contractors, part-
time and job sharing
arrangements all place additional
burdens on the local payroll
function. This is made more
complex when these work patterns
extend across geographic
boundaries.
The pressure remains to gather
data in real time for processing
across multiple jurisdictions. Real
Time Information (RTI) in the UK
requires employers to submit
payroll reports to the authority “on
or before” the point at which
payment is made – previously, this
information was provided at year
end only. Additionally, in many
countries individuals do not file
tax returns – so if payroll and
withholding is not correct, the
authorities will seek the shortfall
(and look to levy penalties) from
the employer.
PwC | Making Payroll pay | 11
12. Questions to ask
• How do you currently identify
and track internationally
mobile employees?
• How do you know when
frequent business travellers
have triggered local
withholding tax thresholds?
• As your international
operations have grown, have
you developed a multi territory
payroll strategy (e.g. retained a
single global provider, or are
you managing a network of
local providers)?
• How do you deal with multi
currency arrangements?
Organisations are struggling with the increasing complexity and global nature of payroll.
Compliance is a key-driver, particularly for clients where they have small employee
populations outside their key established locations. Managing payroll for mobile
employees and dealing with cross border issues needs payrolls to be managed in a
coordinated way, such that home and host country issues can be addressed
simultaneously.
Our View
12 | Making Payroll pay | PwC
13. Making Payroll pay
Rapid technological changes are
providing increased opportunities
for payrolls to become a valued
business partner by providing
strategic management reporting
support. By embracing a
continuous improvement mindset,
payroll functions can add real
value to organisations by
increasing efficiencies and
reducing costs. In addition to these
opportunities, care must be taken
to ensure there is a robust
governance framework to support
the payroll function and to manage
its inherent risk.
PwC has a range of services to help
organisations assess the
opportunities for their payroll
function and to identify areas of
potential exposure.
We help organisations to develop
a technology strategy for payroll
that fits with their broader
business and technology strategy,
including advice on vendor and
application selection,
implementation and operation.
We help organisations to assess
the reasons for payroll failures,
investigate potential fraud
situations and providing risk
assurance to evaluate the
effectiveness of the payroll
function and efficiency of
payroll processes.
We assist organisations to
interpret their industrial
agreements to identify and prevent
incorrect payments to employees.
We also work with organisations to
ensure the smooth transition or
integration of payroll systems
during corporate mergers or
acquisitions. We can provide
support in the pre and post deal
stages and provide advice over:
• Vendor selection &
management.
• Outsourcing.
• Retaining existing systems.
• Payroll consolidation.
• Employee data privacy
management.
Our focus is on providing an end
to end service to clients to ensure
your payroll is not just fit for
today, but the function is future-
proofed to ensure it is capable of
dealing with the increased
complexity and regulations
coming in future years.
If you would like to discuss any of
the aspects in this paper,
please contact any of the team
listed below.
Contacts
Rohan Geddes
National Leader – Payroll
Consulting Practice
T: +61 (2) 8266 7261
M: +61 413 029 966
E: rohan.geddes@pwc.com
Stephanie Males
Partner- Government
T: +61 (2) 6271 3414
M: +61 421 054 074
E: stephanie.males@pwc.com
George Johnson
Director
T: +61 (3) 8603 0651
M: +61 409 692 206
E: george.johnson@pwc.com
Chris Harvie
Director
T: +61 (3) 8603 0132
M: +61 400 710 541
E: chris.harvie@pwc.com
Tracy Angwin
CEO of Australian Payroll
Association (APA)
T: +61 (2) 8266 1809
M: +61 438 086 113
E: tracy.angwin@pwc.com
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