Implementing a global payroll project can be complex, time-consuming, costly and frustrating if not done well. Here are five pre-planning best practices to help prepare your organization for a successful global payroll implementation.
First when beginning a global payroll project analyze your company’s payroll requirements such as pay frequency, pay dates, entities, employment contracts, compensation types, bonus practices, employee types, payroll policies, etc. Through understanding the consistencies, inconsistencies, and volumes within your payroll requirements, you will have a smoother transition process leading to reduced risk for pay errors post go-live.
Analyze the data quality of your employer and employee pay data within the countries you intend to implement. The more complete, accurate and accessible the data is the faster the project progresses. The more complete and accurate the data meets local payroll, and tax requirements assures for project success. Data examples that should be reviewed are bank account(s) information; National ID; Employment contract; work address; residence address, etc.
Pre-position dedicated project team members by setting clear roles and responsibilities. Many times projects of this type are supported by team members who already have full-time jobs doing other tasks. So the addition of this project to an already full list of deliverables will create project risk. If fully dedicated project resource(s) is not an option, using a part-time project team member can be mitigated with clear and agreed to priority sets and timing. Supportive management for the team will be needed through the life of the project, making sure team members are set-up for success and see the project through to the end.
Proactively review your current level of tax compliance risk. Tax laws vary country to country and are open to interpretation. Project leadership will need to work with organizational leadership to assess the level of risk the organization is willing to take. The level of organizational risk aversion, when compared to the current level of tax risk, will drive how much work will be needed on current tax practices. Non-compliant tax practices may require lengthy jurisdictional interaction, require additional document refilling and could have a financial impact.
Engage the right level of company leadership to champion decisive decision-making and priority setting. Within a project like this, it is inevitable that company policy and practice decisions will need to be made timely. Using appropriate project management disciplines such as a scope document, Issue Log, Risk Log, communication plan and a formal project plan will keep all key stakeholders involved as needed.
It is important to review your payroll process due to statutory and organizational requirements. Reviewing the above steps for each Global Payroll implementation will assure the organization’s success. For more information about Global Payroll Implementation, we invite you to visit our website