Best Practices for Creating Global Payroll Calendars
Many companies struggle with setting up pay calendars for their global operations. Typical questions they ponder include:
Do I need a different payroll calendar for each country?
Can I synchronize payroll calendars in a region?
Can I do it globally?
What is the most efficient methodology for my team?
What is the most compliant?
How do I coordinate multiple pay cycles, funding time frames, and HRIS cut-off dates?
Here are 6 steps to determining the right global payroll calendar for your company:
Step 1/6: Pull together a list of all current payroll cycles and pay dates.
Step 2/6: Review all payrolls by region to see if there is alignment by pay cycle (ex. In Europe most payrolls are monthly, while in Latin American several countries are semimonthly).
Step 3/6: Determine funding methodology. Are payroll funded globally or are they funded at the local level? What is the time frame for disbursing funds? (Example: In the United States, local payments are overnight, United Kingdom local payments require 2 days,
and in Japan local disbursements can take up to 5 days) Global payments may take longer as wires can range from one to two days to most European countries, but up to 10 days to reach Taiwan.