Payroll compliance or statutory compliance refers to the comprehensive legal framework which organisations must adhere to with regard to the treatment of their employees. Put simply, payroll compliance is the consolidated set of activities involved in the generation of payroll systems, entering data and controlling it along with the accurate calculation of deductions, benefits, allowances and the net wages.
Dealing with payroll and compliance requires companies to be completely updated on all the labour regulations in their respective country. Non-compliance with these regulations can cause an organisation a lot of legal trouble, including penalties and fines.