Each new year brings regulatory changes in every country around the world. Updates to payroll, tax, and employment laws will keep any multi-national company on their toes. There are many changes taking place in 2020 that will impact payroll – the question is, will it affect your organization and should you be taking steps now to ensure compliance?
The UK has several changes happening in 2020 that will impact employers and employees living and/or working in the UK. New Off-Payroll rules (also called IR35) are being implemented in the private sector for the first time. Employers who hire contractors, or use Personal Service Providers (PSCs) to hire contractors must identify and report to HMRC if that contractor should be paying the same amount of tax as a permanent worker at the company. For instance, if a contractor is doing the same job as a full-time employee, the contractor would now have to pay the same amount of tax the employee is currently paying. For many organizations, the use of contractors saves thousands in tax liability versus hiring employees. This will greatly impact the payroll process if you currently use contractors for certain positions.
The other change in the UK this year is the one we’ve been talking about for more than 2 years – Brexit. While talks continue between the UK and EU governments, Brexit will bring with it potential changes for payroll, residency requirements, and more. If your employees are living and/or working in the UK and EU, your payroll will have ramifications based on potential changes to regulations, data protection and privacy requirements.
Many countries are making changes to minimum wage requirements, data and privacy protections, and other regulations that will impact your employees living and working across the globe. Staying ahead of changes, ensuring compliance with new laws, and maintaining accurate payroll will be a challenge in 2020. You will need real-time access to your payroll across all countries to ensure compliance, and direct contact with in-country experts to discuss potential changes. We have designed our global payroll platform to provide easy-to-use technology, aggregated reporting so you can view payroll across all of your countries in one report, and we give you direct access to in-country experts when questions come up. We make it easy so you can focus on growth. Click here to learn more