Meeting New Payroll Requirement. Should you outsource or insource?
International payroll is changing big time. The legal responsibility is being placed on companies to ensure correct employment status allocation and income tax payments, for every country in which their staff reside. This means international HR knowledge is essential to ensure legal compliance.
So, how can you best prepare for these changes? The depth and breadth of knowledge required to become internationally complaint is vast. Understanding the legal documentation requires the ability to read different languages and understand country specific legal terminology. Also, it isn’t enough just to know the legal framework in each country at the present time, these laws are evolving. A company needs the ability to remain compliant as the laws change.
If you have a legal representative and a payroll team in each of the countries that your staff reside, this is a good start. If you want to run payroll in house, this gives you the chance to adapt to the new laws. You will still need to develop a system for tracking where your staff are and how their payroll should be processed. You will need a system for ensuring correct employment status in accordance with the laws of the country they reside. You’ll also need to be aware of cross-country laws, someone staff may need to meet the legal framework of more than one country.
If you are looking to outsource your payroll, a firm with a UK focus will not give you the legal compliance you need. Be sure to find a firm that has global payroll know-how. Ideally one that operates internationally but treats you with the customer care of a local firm. And of course make sure it is trusted firm that has a good reputation. For many, outside specialist help will be critical for compliance. But make sure you get a firm that covers the countries relevant to your company.
For example at Project Global, we have partnered with 32 accountancy firms in order to ensure the acquisition of such complex knowledge requirements. These firms provide global coverage of payroll legislation and systems. This allows our clients to comply with the laws now, and the laws as they change.
If you have any queries about international payroll and how it may effect you, feel free to get in touch. We will get back to you with relevant information, specific to your query.
