I recently met with a manufacturing company who has more than 500 employees across five countries. They were struggling with their compliance in each country, and their payroll process was causing operational challenges each month. They were using in-country providers in four countries and had recently switched their U.S. payroll to Paylocity. They needed help with three key components of their operations – global compliance, integration, and reporting.
Global Compliance
With employees in four countries outside the U.S., the team did not have confidence in their current payroll or compliance processes. They were concerned that they were not in compliance with local regulations in each country, and there was no communication with the in-country provider. Since their team had limited knowledge related to the statutory payroll and HR requirements in each country, there were concerns that compliance was in jeopardy and they could be facing penalties.
Integration
Since they were using five different vendors and systems to manage payroll, there was no integration for their U.S. and global payroll data. They did not have a global HR system that could store employee data, so there were multiple systems and processes required to manage the employee information. The lack of integration was also causing data integrity and security issues, since they had to use email and spreadsheets to manage data across countries.
Reporting
Using five different vendors to manage payroll created a huge gap in reporting functionality. They did not have access to payroll reporting in real-time, there were delays from vendors providing reporting, and the team was concerned the reporting was inaccurate or missing key metrics. Over time, the reporting challenges also made tax filing and year-end reporting a very cumbersome and manual process.
Solutions
Once we identified the challenges the team was facing, we started to outline the solutions. Blue Marble has one platform to manage all of their global employees on one platform, with single-sign-on to Paylocity for their U.S. payroll. Paylocity also provides integrated global HRIS, so my client can input all employee details into one system of record for all countries. Blue Marble has a custom reporting tool built into the platform, so my client can run reports for U.S. and global payroll all in one place.
Now my client can scale their business as they move into new countries and ensure compliance with in-country requirements. They have custom reporting and integrated HR to keep track of costs and make tax filing and year-end reporting easier to manage. If you are struggling with a difficult payroll process or compliance issues, we can help. Click here to learn more about our global solutions