Why is Global Payroll so Complicated?

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Yet most companies find global payroll extremely challenging and struggle to maintain compliance. Why is global payroll so complicated?
Why is Global Payroll so Complicated Black Mountain HR

Payroll teams in the US have figured out payroll regulations, paying employees on time, and managing new legislation and regulations each year. So it would make sense that these same skills would translate to global payroll. Yet most companies find global payroll extremely challenging and struggle to maintain compliance. Why is global payroll so complicated?


In-Country Payroll Regulations

Every country is unique – and so are the payroll regulations. Between statutory benefits and leave policies, tax deadlines, and currency requirements, it’s hard to keep up. Add in a language barrier and time zone differences, and managing payroll becomes more complicated.


Using Different Vendors in each Country

Another hurdle for most companies is finding the right vendor to manage payroll in each country. In some countries you may use an accountant, in other countries it might be a payroll company. In every case you are using different systems, have varying deadlines, and typically use spreadsheets or email to communicate with the vendors regarding employee payroll. This can create compliance issues and data entry errors that can take months to unravel once discovered.


Lack of Data and Reporting

Using different systems and vendors for global payroll often leads to another challenge – lack of consistent payroll data and reporting. If you are not receiving monthly updates for each country, there is no way to identify payroll costs, spot errors, or correct mistakes. Global payroll has so many moving parts it can put your organization at risk if you don’t have access to data.

So how can you ensure compliance, simplify payroll in each country, and reduce resources needed to manage payroll for your global employees? Using one platform to manage global payroll is the first step to simplifying your global payroll process. If you have one system with automated updates in each country and real-time access to data and reporting, you can view payroll across all countries and currencies and ensure compliance.


Author – Blue Marble Payroll

Black Mountain Group

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