Expanding and growing multinational corporations across borders requires a scaleable and flexible global payroll system.
Innovative Irish technology company Payslip has developed a smart technology platform that enables employers to engage directly with leading in-country payroll providers and enjoy one centralised and controlled global process.
The product was developed from research and development conducted with multinational companies and the Global Payroll Management Institute of the American Payroll Association. The result is a solution that transforms global payroll operations, creating a streamlined, low-risk, cost-effective process.
By adopting the product, companies can manage and control their entire global payroll on one user-friendly platform with intuitive dashboard reporting for the Global CFO and consolidated reporting into HCM & ERP systems, where needed.
“If you are a multinational company that is growing very quickly, the normal way to ensure payroll is on time and locally compliant, is to use an external payroll provider in each country, and to manage it internally, either through finance or HR department, or across both,” says Payslip founder and CEO, Fidelma McGuirk.
With work calendars and compliance requirements varying from country to country, it’s a lot to contend with: “the result is often a washing machine of emails, most of which come with Excel spread sheets attached. Managing payroll partners and data transfer with them is a key problem that companies face.”
Globally, it is estimated that around 70% of multinational payroll is still done this way. Not alone is this cumbersome and inefficient but it creates unnecessary risks.
One platform to manage all payroll information, across all countries
Payslip’s software enables multinationals to manage all payroll information, across all countries, on one platform, regardless of what country users are in. If users are in the US, Germany or Australia, the interface is the same.
That applies to all users, whether they are in a company’s payroll, HR or finance department, and whether they are an employee, contractor or other vendor. All parties can logon, see and access or upload information in real time. “It’s a single source of truth,” explains McGuirk.
Payslip’s dedicated employee self-service app is available to contractors, expats, agency staff, permanent and temporary staff. It provides pay and taxes information and electronic payslips,
Payslip is a Payroll Provider Management System, in that it enables multinational companies to impose discipline on the management of SLA delivery and data transfer through its Payroll Partner Portal. Payslip’s client companies can enjoy a unified global payroll management process.
Preparing for GDPR
One of the important benefits Payslips provides is in relation to data protection compliance. The EU’s General Data Protection Regulations (GDPR) brings with it, for the first time ever, the threat of significant financial penalties where data protection breaches occur. These can be up to 4% of global turnover.
“GDPR will, by definition, have an impact on businesses that manage data across different countries, including US companies with EU employees,” says McGuirk.
Payslip enables them to catalogue employee data, simplifying how they manage and monitor the personal data of their global workforce, with in-built tools and resources to help them meet GDPR requirements. In the event of a data protection audit, Payslip provides useful reporting to help compliance reporting.
To derive maximum benefit from Payslip, a company should have a presence in at least three countries, with a minimum of 120 employees and a turnover of at least €5 million. “That’s the point at which a growing multinational company starts to feel the pain,” says McGuirk.
Getting a robust international payroll system in place at this point facilitates efficiencies as the business scales up.
“The traditional way is for global payroll to grow organically adding on country by country. Where a global payroll process is not consciously designed, then parallel locally driven processes are multiplied and shoehorned into a central report and then an employee goes on sick leave or holidays and no-one else can figure out the payroll process. This system is risk laden. Where a resource changes or a deadline is missed, the company then realise they need a smarter process,” she explains.
With the advent of GDPR, muddling through is simply not an option. A recent webinar on the subject hosted by Payslip attracted hundreds of US companies, a good indicator of the concerns it is giving rise to there: “Companies there are really worried about it,” she says.
As a single source of information, providing visibility over a company’s entire global payroll operations by country – producing detailed reporting and audit trails while enhancing data protection – Payslip is the smart solution.