This document summarizes a presentation about global payroll. It discusses the key aspects of managing payroll across multiple countries, including global payroll administration, operating models, challenges with local versus expatriate payroll, outsourcing options and technologies, new country setup processes, and best practices. The presentation provides an overview of global payroll and considerations for establishing an effective global payroll strategy and governance structure.

1. Paying Across Borders
Presented to: New Jersey Statewide Conference
Date: September 15, 2017
Presented by: Dave Leboff, President, US Operations
Immedis, Inc.

2. Immedis in
numbers
Local knowledge.
Global reach.

3. International
Payroll Service
Fully managed global
payroll service offering
Worldwide payroll
calculations
Multiple jurisdiction
service
Payslips for all
employees
Choice of payment
frequencies
Tax and social security
deductions calculation
and advice
Coordination of tax and
social security payments
Employer wage tax
return reports and
submission
Updates on rate changes
for pensions and social
security contributions
Delivery of net pay into
the employees’ bank
accounts
Remittance of tax to
local authorities
Year-end documentation
supplied to employees
Advice on relocation
costs and subsistence
payments

4. 1. Global Payroll Overview
2. Global Payroll Strategy
3. Locals Versus Expats
4. Outsourcing & Technology
5. New Country Startup
6. Best Practices
7. Questions
Contents
Overview

5. Global Payroll
1. Global Payroll Overview

6. Global Payroll
Overview
In absolute terms, total annual value of
international trade has exploded – up 500% -
between 1985 and 2015
Why International?

7.  Global payroll administration is the sum of all activity
required to coordinate and manage the operation of
payrolls, in more than one country, for a single employer.
 Global payroll administration includes:
 Collection and distribution of data required to calculate payroll
(earnings, deductions, net pay, tax liabilities)
 Completion and filing of employee and employer compliance
 Remittance of funds to statutory authorities
 Delivery of net pay to employees
 Accounting and management information reporting
 Compliant operation with global regulatory frame
Global Payroll Overview

8. Global Payroll
Overview
Global Payroll Process
Fundamentals
Global ERP
(Global Programs, Management Reporting, Accounting, Analysis)
Country 3 ICP
Gross-to-Net
Payroll
Processing
Country 2 ICP
Gross-to-Net
Payroll
Processing
Country 1 ICP
Gross-to-Net
Payroll
Processing
Global, Regional,
Updates
Local Compliance
Employee
Payslips
Local
Management
Reports
Local Accounting
Reports
Payroll Data Sources Payroll Processing Payroll Driven
Reporting
Local
National
Updates
Local
National
Updates
Local
National
Updates

9. Global Payroll Strategy: Organizational Setup
Organization
Resources
Process/
Workflow
Technology
Administrative
Policies
Performance
Measurement

10. Global Payroll
Operations Structure
Governance & Global
Payroll Program
Management
COUNTRY A
PAYROLL
PROCESSING
COUNTRY B
PAYROLL
PROCESSING
COUNTRY C
PAYROLL
PROCESSING
GLOBAL PAYROLL PROGRAM MANAGEMENT
Governance
PEO

11. Global Payroll Program Governance
Global Payroll
Governance
Payroll
Treasury
Legal
Accounting
Finance
Tax
Mobility
Comp &
Benefits
HR

12. Global Payroll
Program Governance
Responsibilities
1. Decide program
management model
2. Approve program
budgets
3. Approve relevant
policies
 Mobility
 Employee vs contractor
4. Tax and legal opinions
5. Approve accounting
protocols
6. Execute contracts
• Outsourcing
• BPO
• Aggregator
• ICP
• Technology
7. Approve performance
standards
8. Approve treasury
strategies

13. Global Payroll Program Management
Conducting the Payroll Orchestra

14. Global Payroll
Program
Management:
Responsibilities
1. Seat on governance team
2. Monitor/measure program
performance
3. Compliance with privacy
framework
4. Vendor sourcing and
management
5. Global data management and
reporting
6. Integration of global and local
technology platforms
7. Local compliance oversight
8. Key role hires
9. Ensure effective allocation
of roles and
responsibilities
10. Ensure right skills and
competencies are in place
11. Expatriate program and
policies integration
12. Net pay strategies/delivery
for expatriates
13. Seat on new country
implementation team
14. Non-local compensation
and benefits updates

15. Payroll Program
Management
Skills and Competencies
1. Program management
2. Vendor management
3. Global technologies
4. Foreign exchange
5. Culture
6. Country registrations
7. Tax treaties
8. Basics of international
employment law
9. Expatriate policies
10. Expatriate-related law
o Section 911
o RAs vs. NRAs
o Special rules for certain
visas
11. Privacy
12. OFAC
13. AML
If your global payroll function lacks any of these skills or
competencies, your choice is to train or outsource

16. In Country Payroll Processing

17. Responsibilities of In-
Country
Processing Operation
Responsibilities
1. Compensation/
benefit updates
2. Joiners/leavers
3. Gross-to-net
calculations
4. Tax remittances
5. Local compliance
6. Net pay
7. Expatriate processing
8. Payslips
9. Integration with
global
systems/processes

18. Global Payroll
2. Global Payroll Strategy

19. Global Payroll
Operating Model
Alternatives
Relevant
Attributes
 Some relevant attributes to consider:
 Maturity of global payroll program
 Size of organization
 Centralized/decentralized
 Functional/regional
 Shared services
 Number of locations
 Volume of employees outside US/in each location
 Availability of “fit-for-purpose” technology
 Availability/capability of resources
 Inclination to outsource (generally or, specifically,
payroll)

20. Responsibilities of In-Country Processing Operation
New to Global
•Multiple service providers and
technologies
•Uneven resource quality
country to country
•Difficult to gather credible data
and consolidate
Growing & Gaining
Experience
•Maturing governance
•Global program
management evolving
•Reporting requirements set
•Payroll process aggregation
Mature
•Functioning governance
•Global service standards
•Shared services, BPO, selected
managed payroll services
•Global systems integration
•Business intelligence and full
reporting

21.  Governance
 Responsibility always remains with organization
 Program management
 Functional
 Regional
 Shared services
 Shared with aggregator
 Outsource to Business Process Outsourcer (BPO)
 Processing
 Internal
 Outsourced
 Locally
 Aggregator
 BPO
Global Payroll Operating Model Alternatives

22. Global Payroll
Operating Model
Alternatives
Internal
In-Country Processing
In-Country Processing
Program Management
PEO
Governance

23. Global Payroll
Operating Model
Alternatives
Aggregator or
Regional Processor
Program Management
In-Country
Processing PEO
In-Country
Processing
PEO
In-Country
Processing
In-Country
Processing
Aggregator or
Regional Processor
Governance

24. Global Payroll
Operating Model
Alternatives
Business Process
Outsourcer
COUNTRY A
PAYROLL
PROCESSING
COUNTRY B
PAYROLL
PROCESSING
COUNTRY C
PAYROLL
PROCESSING
BPO Program Management
Governance

25. Global Payroll
3. Locals Versus Expats

26. Local National
Payroll
Local
Employment
Law
CultureDifferent Fiscal
Year Ends
Pay
FrequenciesLanguage Social Security
& other Taxes
Compliance
Requirements CurrencyEquity
Reporting

27. Expatriate Payroll
2 Reporting
Jurisdictions Culture
Expat Policies
and Tax
Equalization
Inconsistent
Pay
Frequencies
Language Certificates of
Coverage
Compliance
Requirements Multiple CurrenciesEquity
Reporting

28. Global Payroll
4. Outsourcing & Technology

29. Outsourced Partners
Match your needs with
appropriate vendors
• Administration
o Service and technology
• Capabilities
o Local processing in country
o Service of expats
o Manage funds
o Integration with existing
company technology
o Accounting reports
• Risk Management
o Length of contract
o Data security
o SSAE/ISO compliance
o Who takes responsibility for local
compliance
o Who takes responsibility for ICP
management

30. • Local processors
• Regional aggregator
• Many countries in a region
• Global aggregator
• Any country
• Business process outsourcer
Outsourced Partners

31. • Global data repository
• Global compensation and benefit programs
• Joiners/Leavers
• Expatriates
• Global policies
A Word About Technology
HRMS
Global Payroll
Data
Management
• Accepts joiners/leavers/updates/global demographic changes
• Translates changes into various currencies
• Returns local GTN data
• Flexible, detailed reporting
• HR, Management, Accounting, Treasury
Local
Payroll
Systems
Local
Payroll
Systems
• Local GTNs
• Local compliance
reporting
• Payslips
• Accept data from Global
Data Management System
and report back to it

32. • Efficient, secure data management
• Reporting
• Most Important: Program Management
• What payrolls do you manage
• Where are they in the payroll process
• Who is managing your payrolls
• Real time reporting
What Global Payroll Technology Should Do for You

33. State of Payroll Snapshot

34. Global Payroll
5. New Country Startup

35. Opening a New Country
New
Country Hit
Team
Payroll
Treasury
Legal
Accounting
Finance
Tax
Mobility
Comp &
Benefits
HR

36. 1. Contract with Legal Partner, if applicable
2. Employment Contract, if applicable
3. Work Permit, if applicable
4. Contract with Payroll Partner, if applicable
5. Compliant Payroll Set-Up In Country
6. Systems Set-Up
7. Treasury Process
8. Payroll Calendar
9. Pay Slip/ESS
10. Reporting Requirements
11. Testing/Parallel Pay Run
12. Go Live!
New Country
Payroll Setup
12 Step Process

37.  New country implementations are a team
effort
 Allocate responsibilities accordingly
 Source strong partners
 New country startups are a competency
 You will get better at them each time you do a new one
 Do your parallels – Don’t let stakeholders rush
you
 Measure twice…
New Country Payroll Setup

38. Global Payroll
6. Best Practices

39. The 5 Key Global
Payroll
Challenges…
1. Knowing what you don’t know
2. Access to relevant information
3. Expertise/resources
4. Technology
5. Responsibility must match authority
…And how to manage
through them

40. 1. Train up/Join APA/GPMI/GPA
2. Get buy-in on a governance team
3. Find good vendor/partners
4. Gain vendor management competencies
5. Build a strong new country hit team
Best Practices

41. Questions &
Answers
Open forum

42. Thank You
www.immedis.com