The payslip, or pay stub or online payslip, is the official document that confirms one’s income each pay cycle. It’s a common document around the globe that employees receive to review their hours worked, wages received, taxes paid, and benefit contributions made. The information displayed on the payslip varies from country-to-country and can be very detailed to very straightforward. In the past, employees received these payslips in paper form, and in some countries still do. However, it has become the norm for most employees to access their payslips via an employee portal, giving them access to the documents online at any time, for any available pay period. With the advent of the online payslip comes increased security risks and a need for increased attention to detail. We’ve outlined these payslip requirements below.
Every country has different regulations regarding the information included on payslips to comply with the labor laws, whether the payslip is on paper or available online. For example, in South Africa, employers must keep payslip records for at least three years, the given time for an employee to file a dispute. Also, the payslips must keep a record of information including all hours worked, deductions made, periods of payment, proof of remuneration received, and personal details such as job description and address.
Local payroll providers and employers must also be aware when payslip requirements change. In France, the payslip is considered a legal document and has a regulated standardized format, which is slated to change to the Clarified Pay Slip in January 2018. This impacts all companies in France. The new payslip aims to be more comprehensible and readable, especially in the presentation of the social contributions. The social contributions will now be gathered by risk type: sickness, work accident, retirement, unemployment, and insurance.
With a major change in payslip presentation like the one in France, or with the presentation of payslips in general, it’s important that employees understand the information presented to them on the document to avoid confusion or disputes. Work with your local payroll provider to understand your international online payslips so you can properly communicate with your team members upon payment.
If you’re a US-based employer, you’re familiar with direct deposit and ACH Credit; methods of payment that are accessible via the web, where employees can access their online payments at will.
International payroll varies on delivery requirements, which can go beyond schedules and forms of payment. For example, in the UK, Bacs Payment Schemes Limited (Bacs), formerly known as Bankers’ Automated Clearing Services, is an organization responsible for operating the schemes behind the clearing and settlement of two methods of UK automated payments: Direct Debit and Bacs Direct Credit. It’s essentially a system for making payments directly from one bank to another. Payroll providers use it to assist employers in issuing employee and statutory payments from the employer’s local bank account. This is important for employers to understand because local UK payroll providers must be a Bacs Approved Bureau to help facilitate payroll payments from the employer’s local account.
In Denmark, all employees are provided with a Digital Mailbox issued by the Danish authorities to access their online payslips. This is another level of protection the country takes to mitigate security risks mentioned earlier in the article. The Digital Mailbox is only accessible to each individual via their private digital signature. The digital mailbox is 100% secure and guaranteed by the Danish authorities. In addition to protection, it also streamlines the communication processes between public institutions, businesses, and Danish citizens.
Online payslips are moving ever-closer to the standard in delivering payroll information to employees, but they do come with security risks given the nature of shared information on digital platforms. For help with payroll distribution and keeping up with regulations in international markets, contact Celergo to learn more about your global payroll options and our compliance guarantee in every country we operate in.
**This article is for informational purposes only. It is not intended to constitute legal advice.