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Why Multinational Providers are Paramount in Modern Payroll

Running company payroll throughout multiple regions comes with complexities that can be hard for a single HR and payroll department to handle—from understanding local legislations to language barriers. With local providers often struggling to fulfil global capabilities, multinational payroll providers are paramount in today’s modern payroll operations. 

There are clear benefits of working with a multinational provider that can incorporate local payroll into its operations when running business internationally. Here are three key benefits: 


    As the world becomes more aware of privacy and how we can store data securely and minimize the risk of dangerous breaches, countries and regions are each developing new laws and regulations to ensure organizations handle customer and employee data responsibly. For example, the recent introduction of the General Data Protection Regulation (GDPR) in the EU significantly affected how organizations operating within the EU and working with EU customers handled their data. It’s important to keep on top of these new regulations as non-compliance is costly: not only does it cause brand damage, but the fine for GDPR non-compliance is €20m or 4% of an organization’s annual turnover. 

    Beyond GDPR however, compliance presents a diverse issue as many territories have their own specific practices and legislations that organizations must navigate when running their payroll. From Ireland’s recent changes to PAYE to the UAE’s Wage Protection System, the international landscape of compliance is complex and ever-evolving. 

    Rather than a payroll department having to learn and keep up-to-date with these ever-changing regulations, working with an international payroll provider means that local experts in each region can manage payroll at a local level while the provider connects the localities on a global scale, with ease. 

      Global vs. Local:

      With the perfect combination of both global and local payroll operations, a multinational payroll provider can collate the local payroll on a global level: it no longer has to be either / or. The HR and payroll department no longer has to sift through and collate a never-ending collection of local payroll reports as the global payroll provider collates the data and presents it as a whole on a single dashboard, making data analysis seamless and easy. With streamlined reporting capabilities, organizations can analyse payroll on both a local and global scale. 


        From the uncertain landscape of Brexit ahead, to rapidly advancing technology, no one can accurately predict the future. With the changeable path that lies ahead, many businesses are set to expand or contract their international operations in response to developments this year. Ordinarily this would be a huge undertaking for the HR and payroll department, as new legislations have to be learnt and payroll operations must be adapted. However, an international payroll provider empowers organizations with that much needed flexibility, with local operations harmonized under one single partnership, and helping make the adaptation to changes in the international business landscape seamless. 


        Although global payroll can seem intimidating, it can actually be much simpler than many HR and payroll departments may expect. Working with a global payroll provider will save the team crucial time and energy, as they can rest assured that the payroll is internationally compliant and running accurately across all regions. Without this to worry about, the department can run more efficiently and become more valuable to the business as a whole. 

        To learn more about SD Worx and its Power of Payroll campaign, download its white paper on unlocking the power of payroll here.