5 Ways Global Payroll Outsourcing Ensures Compliance with Fast-Changing Regulations
Businesses at greater risk from data theft
Businesses around the world are at increasingly greater risk from lawsuits and government action as a result of data breaches and failure to comply with employment regulations.
These risks have been demonstrated in some recent shocking examples
- In 2018 in the UK, supermarket chain Morrisons was held liable for a rogue employee who deliberately disclosed the details of the company payroll. Despite the employee’s intent to harm the company, a suit by 5,000 employees against the company was successful.
- In the United States in 2019, payroll data for 29,000 Facebook employees contained on a computer hard drive was stolen from an employee’s car. The data included names, bank account numbers and the last 4 digits of social security numbers. The employee was not authorized to take the data outside the office. Similar incidents have resulted in lawsuits that have been settled.
- In 2019, Washington State University paid 4.7 million USD to settle a lawsuit after a portable hard disk containing information about 1.2 million people was stolen from a storage unit.
- Since the strict new law enacted by the European Union called the General Data Protection Regulation (GDPR) was enacted in 2018 to protect personal data, companies throughout Europe have been fined in excess of 100 Million Euros for data breaches.
Increasingly, companies are being blamed and, in some cases, required to pay compensation, even where one of their employees has broken the law and violated employer policies related to the safekeeping of data.
These risks pose a major and evolving threat to business. And the awareness of – and preparedness for these threats – are not options.
New regulations underpinning the increased threat to business
New laws and regulations throughout the world are helping create new danger for companies.
- 2018’s EU GDPR regulates how organizations manage data and is mandatory for any business operating or providing services to the EU, whether located there or not. While the UK has left the EU, it remains in a transition period where GDPR still applies. The UK is likely to enact a similar regulation once the full transition from the EU is complete.
In the US…
- New tax reform was implemented in 2017 which changed withholding requirements and deductions. This affects any businesses which employs foreign workers in the US, or American nationals working overseas.
And elsewhere in the world…
- New regulations have been implemented in Europe, Asia and Latin America related to payroll, tax filing, tax brackets and online payment systems. These regulations change often, and businesses must keep abreast of all them in order to remain compliant and safe.
Many internal corporate teams see local regulations as a major challenge
According to a recent Global Payroll Association survey, 41% of global payroll professionals say a lack of knowledge about local regulations is a major challenge. This lack of knowledge and the risks associated with non-compliance with payroll, taxation or employee data management issues – can be a major threat to your business.
Mercans is a trusted partner ready to protect your business
Below are 5 key areas where Mercans can help you avoid the costly risks we’ve detailed above:
If your business operates or is expanding globally, your data can be at greater risk because it will need to be maintained wherever you have offices. Therefore, you’ve got to ensure both the safety of this data such as employee and customer information — while at the same time following all local data regulations, including GDPR.
- Mercans is highly experienced in ensuring your data is protected against any potential breaches via the use of our proprietary SaaS software technology. We combine this advanced technology with Mercans informed human resources consulting oversight.
If your company attempted to duplicate this system internally, the cost would be prohibitive. Therefore, it’s wise to work with Mercans to provide the physical resources and management of your data to avoid significant capital outlays and the risk of maintaining these systems internally.
Transparency and Confidentiality
When your business outsources payroll to Mercans you ensure your sensitive company data will always remain secure. Too, when outsourced, the payroll process can more quickly report errors.
This data security and transparency helps your business ensure it’s trusted by regulators and in full compliance with data security regulations including GDPR.
Access to Custom Global Payroll Solutions
Local knowledge and the ability to navigate unique regulatory environments in different regions is essential for effective global payroll to be effective.
By working with Mercans, your company will successfully maintain both global and local statutory compliance. Our global payroll outsourcing professionals possess unique access to — and knowledge of — propriety payroll SaaS technology — which ensures your success in local and global payroll, taxes and compliance.
When internal HR staff conduct payroll without the most updated information, issues of non-compliance may arise. And that non-compliance, even if inadvertent, can result in scrutiny from regulatory authorities, and possibly even significant fines.
Mercans is expert in processing payroll for numerous small, medium and large-sized business. Our experience and insight will free up your internal HR staff to focus on what they do best – while we ensure your payroll is something you never have to worry about.
When businesses outsource payroll, their compliance improves via a reduction of risk.
Mercans professional staff specialize in understanding and analyzing all changes to local, regional and national rules and regulations related to payroll and taxes.
Unless your internal HR team is trained in global payroll software and possesses an ability to interpret and apply often complex regulatory systems, there is a significant danger of errors being made.
It’s important to remember that international businesses are typically legally responsible for inaccurate tax filings with local authorities. Therefore, understanding wage and overtime laws is also essential.
Mistakes in any one of the international jurisdictions where you may be operating — can leave you open to audit or penalties.
As payroll mistakes are common and regulations are often complex, Mercans specialists stand in to complete complicated calculations, maintain awareness of all changes in regulations related to taxes, and how to avoid errors, ensuring your business is always fully compliant.
Ensure your business is protected from growing risks
With a wealth of expertise dedicated to helping businesses like yours remain fully compliant with complex local, regional and national jurisdictions while also ensuring your data is safe with our proprietary technology – Mercans protects you from the growing and emerging risks business now face – while freeing you up to focus on what’s most important: Growing your business.