When it is about delivery of successful payroll today, the basic concerns of the payroll leaders in multinational companies extend much beyond timeliness and accuracy.
Moving target is a statutory compliance at the regional and local levels and is important & plays a crucial role molding the future of the payroll processes.
Developing a well adaptable strategy is crucial for the global organizations to manage compliance with the info protection & reporting needs.
Note that the key to it is an approach, which is proactive understanding of basic risks to the compliance, so that the business can address the changes & problems as and when they come up.
Here, we will look at major risks to the compliance & what they mean for the businesses looking to outsource their global payroll software.
Changes in the law
Since their implementation in 2018, European’s Union (GDPR) has raised great bars for the data security needs of the companies within the EU and around the globe.
Most importantly, GDPR sought to effectively manage data protection even when the data intersects the international borders as organizations try to attain continuity of the service & access across the geographies.
However, note that the EU is thoroughly not alone in defining the widespread and new legislative needs as BRIC (Brazil, Russia, India & People’s Republic of China) countries all debated on how to control flow and hosting of the information for their citizens.
Major data legislation of Brazil LGPD came into effect in 2020 & in India the lawmakers were expected to debate new legislation in third quarter of the year 2020.
In the US, state level legislation has come up with enhanced protection in several jurisdictions via CCPA or California Consumer Privacy Act & Strengthen North Carolina Identity Theft Protection Act.
It is expected that the new legislation will get introduced at country, regional & state levels & existing laws will get adapted as they get tested.
One such need shared by such laws is that employers should remain abreast of changes & stay compliant when it comes to management & processing of employee data/info involving payroll.
Changes in the technology
Moving away from the traditional, physical rack space information hosting in the favour of the scalable cloud based software is a great welcome change.
Beyond permitting for easier, timely data management, cloud storage allows better security options & is adaptable to the ongoing & future technology changes.
However, owing to this switch to cloud means a crucial structural change for the more established businesses, it can cater few challenges.
For instance, info mapping can be tough to accurately delineate as the enterprises transition their networks away from the physical data centres.
The IT leaders require to closely work with the compliance managers and also the payroll & HR team to make sure that the workflows and data stay protected as the software gets modernized.
Having precise knowledge as to where the employee info/data is stored & how it can be transmitted is paramount.
Changes in the external threats
While most publicized breaches concentrate on the consumer info/data, employee data states a highly susceptible asset for many businesses/companies.
Especially as employers control and manage the daily financial transactions for workforces, some of the external factors work towards exposing and taking advantage of the weak controls over the employee data for attacking the businesses/organizations like impersonation fraud for diverting the funds.
Range of strategies allow such targeted attacks on the employee info/data, from subverting the financial transactions to acquiring personal staff info to impersonate internal accounts via spear phishing attacks.
With the evolution of such strategies, they pose greater threat to the businesses and exploit their susceptibilities in outmoded platforms, particularly by putting in massive targets on companies that utilize them.
How can vendors assist?
For the businesses considering advantages and impact of the outsourcing global payroll system, it is crucial to create data protection needs a major discussion topic with prospective vendors.
The global providers with accurate processes & controls will be able to well demonstrate their record of compliance from transferring the activities/tasks via ongoing delivery of the compliant payroll platforms.
Major advantages of partnering with the experienced provider is that businesses can make most of the provider’s experience and expertise, especially in those countries, which is new to the business or those that cater a unique challenge.
Also, correct providers produce subject matter experts to efficiently discuss specific concern areas.
Numerous payroll providers offer the potential to integrate major systems like global HCM, with payroll solutions. However integration capabilities can differ greatly by vendor.
Note that integration can cater added protection & as such is a crucial consideration for any of the payroll transformation projects.
A suitable vendor can just demonstrate accredited integration potential for the business’s chosen finance or HR system and robust internal control surrounding detailing how they can process, receive & retain the employee data.
Generally, it is crucial to identify how much has evolved just in a few years, particularly when it comes to info protection & legislative compliance.
Fact that such change is prone to go on and bring both challenges and benefits but one thing stays clear : businesses who commit such resources to growing an adaptable, cloud based network for such companies info will be in a good position to navigate the changes/upliftment as they come.
At Dynamics Business Solutions (DBS), we have come up with Dynapay payroll developed inside Microsoft Dynamics 365 BC – cloud based payroll software that is a reliable, flexible, simple to use platform that can even help HRs to solve comprehensive payroll calculations with ease.