As businesses expand their workforce and enter new international markets, the challenge and importance of maintaining payroll compliance grows exponentially. It’s not just a matter of ticking boxes for regulations; as our new research shows, it represents the largest investment in payroll management for many companies. Running closely behind is investing in fortifying payroll data security, a critical aspect given the sensitive nature of payroll information. These investments are foundational to safeguarding your company against financial penalties and safeguarding employee data against breaches.
Related Guide: Payroll Compliance Guide
As companies grow, particularly beyond the 500-employee mark, the ratio of payroll staff to employees often shifts dramatically. This shift can potentially amplify workloads and introduce compliance risks if not handled properly. HR leaders must recognise these changes and plan accordingly - whether it’s hiring new talent into the team, integrating cutting-edge software solutions, or seeking external support, proactive planning is key to mitigating risks and ensuring compliance amidst payroll complexity.
Beyond technology, investing in comprehensive compliance support is crucial. This includes ongoing training for payroll staff – an investment being currently undertaken by a third of employers in Ireland, according to our findings. Additionally, seeking counsel from compliance and legal experts, and engaging specialised advisors for international laws, is imperative. These steps ensure that compliance is integrated into the payroll process, not merely an afterthought.
"Right now, Ireland is moving through a period of legislative changes, such as Pension Auto-enrolment, Gender Pay Gap Reporting, and changes to the National Minimum Wage. At times like these, it’s important to work with a payroll partner that you can trust to keep you at the forefront of compliance."
- Robert Norton, Head of Customer Excellence Team Ireland
For many companies, achieving true payroll compliance calls for systemic shifts. This may involve restructuring the payroll department, integrating new roles that focus solely on compliance, or even changing the company culture to prioritise compliance at all levels. Such systemic changes help embed compliance into the fabric of everyday operations.
As businesses expand internationally, consolidating payroll functions with fewer, more capable partners can streamline operations and enhance compliance. Opting for partners capable of navigating multi-country payroll under diverse regulations can lead to streamlined processes, cost efficiencies, and clearer communication channels.
Related Blog: Navigating Payroll Compliance: Essential Tips for Irish SME
For HR leaders, scalability in payroll compliance hinges on three key strategies:
In Ireland, only 64% of employers believe there is enough internal experience on the team to sufficiently manage payroll independently.
We asked employers and employees in Ireland to tell us about payroll at their company. We surveyed 17 other European countries to spot the trends and to see how Irish businesses compare. Now, four SD Worx formerly Intelligo experts share insights from the new research to answer the biggest payroll questions every Irish organisation faces right now, as they try to achieve payroll success in 2024.