Global compliance involves frequent change, so Brazil’s decision to move back timeline for its new eSocial system to January 2018 is a perfect example of the last-minute challenges payroll professionals may face with payroll automation, a management specialist said Sept. 22.
Kira Rubiano, a partner at Celergo LLC, also highlighted several other challenges that employers may face with automation. In certain countries, infrastructure is too underdeveloped to support the new technological regulations. For example, “there is a huge push in Africa toward e-filing but the technology is not quite there so it’s a long ongoing process,” Rubiano said Sept. 22 at the American Payroll Association’s fall forum in Las Vegas.
Other countries, like Russia, have automated processes, but the amount of paperwork required is time consuming. Most documentation in Russia requires an order and employers are repeatedly signing papers, Rubiano said. China and Japan regularly need a stamp or signature whenever a company seal is required, a manual process that hinders automation.
Complexity also may be a challenge for many employers, especially in Switzerland. The system there of insurance and cantons, or administrative subdivisions, can be cumbersome, Rubiano said. “Ironically, France and Brazil, two typically difficult countries for payroll, have started to tackle the complexity issue and are trying to implement integration for governance.”
In Brazil, the eSocial system was created to reduce labor violations and to ensure transparency by requiring electronic reporting of social taxes and labor information. The Declaration Social Normative has a similar purpose in that it automates the manner in which all social declarations are filed which is a huge overhaul to the social system in France, Rubiano said.
Governments are leveraging new technology to centralize and standardize operations, ensure wages are paid, reduce delays and minimize manual processing, Rubiano said.
Global automation has come a long way over the past several decades since the introduction of human resource information systems, said Darin Lowe, director of strategic alliances at Celergo Global. These information systems originated in the 1990s as client server systems and were adopted by companies listed on the Fortune 500, said Lowe, who also spoke at the APA’s fall forum.
Before global systems were developed, Lowe said there was “either no Internet or it was very limited. Client server technology was very slow and systems were very much country specific. The systems were not even integrated for payroll and dual entry was required.”
Looking ahead, data analytics likely will play a bigger role in global payroll automation to bring changes to key metrics, Lowe said.
Ultimately, employers need to focus on investing in software to keep up with new government regulations and more stringent deadlines, especially if performing payroll in house, Rubiano said.
Take a free trial to Bloomberg BNA’s International Payroll Decision Support Network. With more than 90 countries covered, this is your one-stop resource for reliable, up-to-date guidance and analysis in every area of global payroll administration and compliance.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)