Guide to Global Payroll: Strategy, Implementation, Operations

Whenever you are implementing a new payroll system, it is important to understand it thoroughly. Keeping these three best practices in mind can help you begin your payroll transformation in a positive way and keep momentum building, project after project. To further complicate things, during implementation, we most often do a parallel run of the period just before go-live. Monthly payrolls are normal in Western Europe, so to launch in January in the Netherlands, for example, we would do a complete parallel run in December. For example, in Western Europe it’s common for companies to pay early in December to accommodate the Christmas period. In payroll terms, we would call December a short month, meaning customers are trying to get everything done in less time than a standard month.

Consider the implementation of modules beyond payroll if you have selected those products, such as time and labor, recruiting and onboarding, and HR management. Ask other system users such as department managers what elements of your new system are the most important to them and use that to build out your timeline. It’s vital to research this because a mistake during payroll can be potentially detrimental to an employee. Anyone who has worked in payroll long enough knows errors happen – a new hire fails to get into the system, someone miskeys a pay rate or hours, or you miss a processing deadline due to an emergency. So, you’ll want to know how quickly your calls for assistance will be acknowledged and resolved.

What role does technology play in payroll implementation?

That’s why a successful implementation process starts with a chat with a specialist. They’ll get to know your company, set project timelines, and make sure everyone is on the same page. However, somewhere along the lines, the implementation can take a wrong turn.

  • Assign a competent leader, typically from the payroll or HR team, to manage the implementation process.
  • Look for cloud payroll software that aligns with your organization’s specific needs, such as automating tax calculations, generating payslips, and managing employee benefits.
  • This past year I had the opportunity to facilitate the selection process for a new payroll system.
  • The system should allow for the quick integration of new countries and partners.
  • HR professionals need to be experts on recruiting compliance and avoid falling foul of changing regulations.

You’ve done your homework and you’ve finally found the perfect payroll provider for your business. But shopping around for different payroll providers and actually carrying out a payroll implementation are two very different stories. As a result, implementation mistakes are common and can sometimes sour relationships between providers and users early on. Implementing a payroll system can be complicated, so it’s important to follow the steps outlined below for successful implementation. These steps can help you create a comprehensive plan that will get your new payroll system up and running in no time. Automatic calculations of overtime, premiums and differentials are included in the workforce management of the software, providing proper compensation as a result of accurate time tracking.

Form and implementation team

If you’re planning an expansion you have to implement a global payroll, but before this you must get all the information about the employment law of your target country. The first thing you need to do is analyzing and documenting your processes so you can understand your needs in your payroll department. If you don’t know the areas in which you lack expertise, you’re not going to get an excellent result with any system or provider you choose. As a business owner, you must focus on your payroll administration if you want to have smooth operations and ensure your workforce gives its best performance.

Business processess

Begin by documenting your process and knowing which steps or stages you currently have. From beginning to end, you should define the full scope of your current process. Do not assume that your project manager, if an internal appointment, can combine undertaking the project with their day job though. Because such a situation will likely put them in an impossible position, you may need to backfill their post for a while.

How do companies choose the right payroll system?

An important factor in maintaining that manageability, however, is properly scheduling implementation projects so that deadlines and requirements don’t compound and overwhelm your team. The Social Security Wage Base is the maximum gross earnings subject to Social Security tax for employees. It can be challenging to compare the pricing provided by each vendor, but it is in your best interest to take the time to compare apples to apples. Glassdoor can give you a peek into their culture and atmosphere and most notably, how they treat their employees.

As you may know, in the UAE there are several regulations and you should comply with them. Keep in mind that although they’re not mandatory in your home country, you should offer them to your international employees. While a given individual of influence may not directly be affected by your project, they can still throw a spanner in the works if they do not like what is happening. Likewise involve your workforce as soon as possible in the process, especially if they are likely to be affected by things like self-service or electronic payslips.

Why don’t you work with every country?

Payroll implementation refers to the process of incorporating a payroll system into your company’s daily operations. This process includes setting up and configuring the software, inputting employee data, defining pay structures, and ensuring compliance with various tax and labor laws. In this case, fintechs—and within that field, payroll startups—are bound by the rules of their payment service providers. When a company like Skrill or Revolut decides not to work with a specific country for any given reason, there is usually nothing that can be done about it. A crucial step of your payroll implementation is defining a plan and establishing a timeline with goals.

Handling multiple Payroll Solutions Providers

Also, timing rollouts to include ‘easy wins’ and minimize disruption to established HR processes can help manage any resistance. Moreover, smart resource planning can ensure that only necessary individuals are involved in the payroll change. If you’re a mom and pop shop with just a handful of employees, your plan will be fairly straightforward. Document new business processes and any new terminology to help employees complete system tasks without having to call you or the project manager. Possess a strong background in Payroll/HRIS that includes professional consulting skills, project management and numerous full cycle implementations of various HR/Payroll software products i.e. Have implemented HR/Payroll systems for companies ranging from several hundred to up to forty thousand.

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