Challenges in Managing Payroll and Compliance | PeopleStrong

Identifying compliance challenges in the payroll process can help you determine quick solutions to make the process easier, save resources and enhance overall compliance. Here are the top compliance challenges that HR teams generally face –

• Multiple business locations attracting state legislations For businesses expanding into new countries, each location has its own challenges and requirements that must be identified before beginning the process of payments to new employees. There are multiple aspects to consider here that include ensuring compliance with specific in-country regulations, managing payroll for your global employees and more.
• Multiple legislations and multiple regulators Constantly changing administrations and multiple regulators lead to multiple regulatory changes that make it quite challenging to maintain everything in single payroll software in the workplace.
• Segmented department’s compliance initiatives Fragmented compliance initiatives refer to a situation where different departments of an organisation are in charge of various functional activities leading to frequent changes in process owners and internal processes, including the separate compliance team/department.
• Time-consuming and unreliable reporting Lack of reliable payroll data and visibility is one of the main challenges that can lead to many issues like compliance mistakes, payroll fraud, and violations of local regulations.
• Dynamic statutory landscape Constantly evolving statutory requirements with increased numbers and complexities in managing a payroll software, coupled with a lack of a robust process updating mechanism, make it difficult for businesses to keep up with a dynamic statutory regime.
• Payroll Staff’s Lack of Expertise Many times, the functional staff lack adequate knowledge and expertise in applicable regulatory, legal or statutory compliance requirements. This kind of compliance risk multiplies manifolds when the business operates from different locations.