Handling payroll internationally is a complicated job … Papaya Global Osemgroup…
openly announced and it was 100 million dollar settlement that Uber made with the state of New Jersey one state in addition to the openly announced settlements there’s likewise considerable legal costs there’s there’s other charges there’s other costs behind that as well so the overall cost can be very substantial in the 10s of millions of dollars or more and and those amounts are growing uh the reason business are getting it so wrong is actually just the guidelines are complicated and they’re changing all the time think ir-35 in the UK which has actually been a continuous development for several years now and and still a great deal of unpredictability among companies on what it actually suggests and how you deal with it most companies are simply not knowledgeable about the guidelines and and act as if the the rules are the same everywhere which they’re not so so motivate you to to be really proactive as you’re engaging uh employees from a classification perspective fine thank you Stephen and returning to yourself Ray it’s not just the company that suffers in the long run what impacts can this have on the employee Papaya Global Hours Worked Report especially when it comes to their own tax liabilities social security and advantages for example jury and undoubtedly the workers the opposite of the coin
How much revenue does the company make? Papaya Global Osemgroup
Over the last 5 or 6 years …Papaya Global Osemgroup… functions on the provider side and also on the supplier side from a payroll point of view so really anticipating this discussion today um and yeah thank you quite for your time everyone fine thanks Johnny uh we’ll just give everyone another couple of uh well one of the 30 seconds or two to join all of us work back to back these days so we’ll kind of let them do that so it ‘d be rather intriguing and I can see it going on already just to hear where everyone is um it’s nice to to type of like see where everyone comes from and I really do hope it’s much sunnier than it is in the UK today definitely not the peak of the sunshine is it it’s not no it’s it’s raining here it’s very extremely uninspiring and I wish I was somewhere else at this moment in time fine so let’s get going our program for today is as follows um we are going to be looking at the challenge years of handling Worldwide payroll why business maintain different
bank accounts payroll virtual wallets versus payroll checking account payroll payroll uh sorry papaya payroll payments forecasting payroll expenses using virtual payroll accounts streamlining papaya International payroll payments as a strategic asset uh we’ll also review a recap which ought to leave his time at the very really end for a q a session so as the title of the webinar suggests payroll officers on relocating to Virtual payroll accounts and here is why as dispersed to remote and Worldwide labor forces end up being increasingly more typical and managing them becomes a growing number of intricate Worldwide organizations are aiming to find Solutions and new ways to enhance processes especially from a payroll and cross-border payment viewpoint lots of organizations preserve different bank account just for payroll while some have numerous accounts in various countries does it make good sense for companies to preserve separate checking account sometimes in different countries it does however just for payroll exists a much better method what role do virtual accounts and digital wallets likewise known as virtual wallets play in assisting multinational companies improve the episode complex processes of
making payroll payments precisely efficiently safely and on time during this webinar we’ll walk you through the international advantages and disadvantages of a payroll wallet versus a payroll savings account how companies accurately anticipate their payroll expenses to increase working capital and how streamlining Worldwide payroll payments can turn them from a siled pane into a strategic asset so payroll can be tough in sufficient in one nation however when you’re doing it globally it’s next level and Beyond it becomes complicated for a range of reasons most importantly regulations compliance data security and banking rules then there are the large numbers they include additional intricacy the worldwide Workforce is currently 3 and a half billion people by 2030 it’s approximated that in Africa alone they will contribute and more 1.1 billion individuals that number is presently 500 million just for for a scale then factor in that there are some 230 million businesses and growing all doing their own thing around the world in the standard payroll design there’s frequently a frustrating variety of different systems leading to lengthy manual procedures and silos the number of Integrations could be non-existent in large quantities and or extremely extremely fundamental there’s no real consistency framework we’re living in a period of tech however payroll has actually been slow to get on board in fact as much as 25 of payroll is still done by hand typically with pen and paper which simply blows my mind every time I I believe
about it to provide you an idea of how far there still is to come according to Deloitte just 11 of businesses state they have Workforce information in real time that’s another number that provides me sleepless nights and quite honestly the more a business invests in worldwide payroll the less of a photo they see a lack of presence also reaches payroll payments and failure to properly track these payments can cause compliance mishaps in the last mile of the deal almost half of global businesses have actually revealed that they do not have the level of standardization they need in their processes or desire and as a result eighty percent of errors are due to time reporting poor HCM data data entry mistakes inadequately interacted hires and terminations along with absence management and system configurations and then when you round everything off and the data is shipped to the wrong location the average expense of a global information breach at this moment is 3.9 billion dollars once payrolls are done we still need to move the money around the world payroll and payments do not run efficiently if they depend on the necessary multiple procedures systems and partners it is simply not possible so Johnny from a payments point of view and in your experience what else needs to be factored into the obstacles organization face when they’re making payments to employees or otherwise that’s a good concern I always throw this back and say what is it what doesn’t need to be consisted of right and what does
it require to be considered there’s varying Bank information so the length of an eye band a swift an account number routing code per nation there’s payment time frames there’s payment capabilities so can you pay it from International or do you need to pay from an in-country account do you have to pay from the consumer’s own in-country account so there’s complexity anywhere you look best eventually constructing a knowledge base is absolutely critical however all over you look with payroll payment they are like incredibly payments no if however some children about it you are all superheroes processing payments for payroll if you look at the type of link in between fintech and payroll it’s closer than ever I think there’s now a bit more recognition that payroll payments are definitely basic and technology is enabling us to type of move forward with that it also also to contribute to that payroll and finance require to work closer together um with varying Savings account Details differing banking requirements and setup procedures is absolutely vital that payroll and finance groups work more detailed together than ever um I’m constantly surprised when people say I’ve split payroll and payment um if you stroll down the street and asked anybody what is payroll who doesn’t work in the payroll occupation would they split the payroll payment from computation I would say no so why do we as an industry accept that why our payroll and payments so frequently split and cut up um ultimately it’s payroll is an end-to-end process it’s the point of data collection all the way through to paying people wherever they are but also paying statutory authorities and on statutory 3rd parties so with the
The modern world places a high worth on well-being and the payment landscape is becoming progressively elaborate. Services are constantly introducing new benefits and payment alternatives, which adds to the general intricacy. Large corporations typically divide their payroll and payment processing into different groups, which can lead to inadequacies and bottlenecks. In my viewpoint, this does not need to be the case. In today’s technically advanced era, there’s no justification for preserving cumbersome treatments. Payroll, the company’s biggest expenditure, must be processed correctly and on time. Even slight hold-ups can negatively affect workers’ well-being and have far-reaching repercussions. For that reason, it’s crucial to prioritize precise and timely payments.
The payroll group may not have actually been thanked for properly processing payroll during a webinar. If anyone has actually been thanked, it would be great to hear their success story, whether it’s from all staff members or not. Payroll is an important cycle, and individuals only notice when things go wrong. Nevertheless, when things go right, it’s viewed as simply a routine job. This is how it’s perceived externally also. Therefore, it is essential to guarantee that tasks like Wi-Fi International and other important matters are done correctly. Using the first Worldwide Payments first payroll payment option is a great preliminary action towards providing a thorough payroll solution for staff members worldwide. Standardization, international procedures, and decreasing the variety of tools, platforms, and savings account essential for worldwide payroll are essential factors in achieving company success. While we do not expect a hundred thousand thank yous within a payroll cycle, we do sometimes get a few problems when things don’t go as planned. Eventually, we do not do it for the thankfulness.
anyhow we understand how how crucial a function it is and that’s why we do it that’s why we get on with it and this is why we’re talking today about making it as simple as possible for everyone that’s associated with those procedures and also so imagine sorry I’m simply I was just gon na say imagine the quantity of thanks you got if you could cover the amount of individuals that we cover within this webinar I’m sure we’re discussing hundreds of thousands potentially Millions imagine getting that many thank you notes um I indicate it ‘d be interesting to see how many Post-it notes you got but it would certainly be an interesting task trying to clean up all those up for sure oh definitely I can’t picture the size of my my Outlook inbox if that was the case um you ‘d require days of the week to try to look through them and in fact see what was going on and sort of shot to get back to everybody so moving on appearance why do business choose to primary different savings account there are Papaya Global Osemgroup companies out there doing exactly this for particular nations and I have actually worked in a business or lots of services doing precisely that I can state it doesn’t constantly feel efficient and it does develop more work I understand we’re not purposely doing that we’re not developing additional work for anyone where we do not need to and anybody that’s handling that process I ‘d be interested to hear your ideas Johnny why do you think that we’re doing that in in the in the amount that we are I think lots of factors one is it’s the requirement I believe people have got so used to we require a new savings account we open an entity and rightly so you require it for payroll functions however there are a number of markets where it’s not a requirement so I think it’s just been the standard and the standard the people have actually embraced and continue to do over years and years gone past to contribute to that individuals have looked at things like trust accounts and numerous other methods um to to sort of do it so I think there’s a variety I think this is a process that requires taking a look at it requires changing but eventually people are extremely stuck with what they’re familiar
with right um modification is a difficult thing all of us do not like modification um so I think it’s simply type of moving away from the norm as we’ve said so yeah so it keeps a great deal of track of things um I comprehend clearly the advantages of having maintaining several bank accounts but there’s a big quantity of complexity opts for setting up a savings account preserving it ensuring it can send out International transfers ensuring it’s established with the right user accesses for private individuals so the complexity is substantial however I think the sincere response is modification um individuals have not had the ability to change or haven’t had always the knowledge to actually make that change into alternate Solutions aside from opening a checking account I believe you have actually struck the nail on the head I believe it is understanding you know and there is a component of resistance to alter but we’ve always done it that way is no real reason for not looking at the the benefits and the possibilities of moving on and moving into you understand what could almost be figured out to be the next Century approximately there is a lot to keep track of and this approach does pose a number of difficulties um so Johnny might you tell us about those difficulties yeah obviously so there’s a range right there is so
I simply did you changed our Business to OS so now we can do our payroll and payments operation on a single platform yes it resembles our CFO got a CFO for their CFO and now that I bulletproof payments to our 10 000 Worldwide workers you are worthy of a corner workplace with a closer parking space because I mastered Global payroll and payments with Papaya payroll OS did you Papaya Global Osemgroup
I find time and time again the workers frequently misclassified unknowingly they don’t understand the conditions of employment or contract and are informed by the customer why it’s most advantageous primarily to the customer why you need to be used or participated in this fashion the worker might owe taxes and Social Security to the authorities the future pension and health care benefits of the worker can be affected and numerous times it can be years before this all falls out and by that time it’s far too late years have gone by they haven’t contributed to pensions Etc so it’s a big effect that they never understood they were strolling into you could not agree with you more if you state the UK for example hmrc can return as much as ten years um Kathy business are securing insurance versus misclassification but usually premiums are only covering the cost of legal charges whilst the average claim examined against companies corresponds to to 40 or half of the base salary of worker exists any point in securing insurance and what is the alternative yeah to your point um you do need to check out the small print it is not covering the taxes penalty and interest for the most part I have not seen it at least so uh the the other area that I do think if you managed to get the coverage what we are saying is is that if your compliance program is not up to stuff you could be denied coverage on the basis of the truth that you were not in compliance with laws um in the UK