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September 12, 2011

Assessing Your Global Assignment Payroll Administration – Cost Effective? Comprehensive? Compliant? (Are You Sure?). Presenters: Kathryn Cassidy Vice President and General Manager Global Operations, SIRVA Relocation Christine Langlands Global Payroll Practice Manager, SIRVA Relocation.

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September 12, 2011

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  1. Assessing Your Global Assignment Payroll Administration – Cost Effective? Comprehensive? Compliant? (Are You Sure?) Presenters: Kathryn Cassidy Vice President and General Manager Global Operations, SIRVA Relocation Christine Langlands Global Payroll Practice Manager, SIRVA Relocation September 12, 2011

  2. Agenda • Overview of Global Assignment Payroll • Why global payroll administration is still so complicated! • Building a “Best in Class” administration program • Q&A

  3. Overview of Global Assignment Payroll - Delivery Per Your Schedule Every Pay Cycle

  4. Overview of Global Assignment Payroll - Audit Perform monthly reconciliations • All pay / deductions included? • Do shadow payrolls deliver “zero” net pay? • Was split payroll delivered appropriately? Follow up on variances • Resolve variances before next pay cycle • Collaborate to resolve under / over payments • Fix system data problems Reconciliation

  5. Overview of Global Assignment Payroll –Total Compensation Collection Do you collect compensation totals from all income sources? Collect local payroll process details frequently Schedule regular data exchanges with third party providers Collect data from Expense Reimbursement / Accounts Payable systems regularly Other benefits provided by your policies may create reportable income. Collect this information at least quarterly

  6. Global Assignment Payroll – A Complex Process Administering assignee payrolls takes significant monthly coordination • Coordinate compensation delivery in home and host country (Splits? Shadows?) • Work with data sources /experts to monitor allowances, taxes, exchange rates • Adjust compensation as required to keep assignments equitable & monitor policy “caps” • Notify assignee, local pay agents, and tax providers when compensation fluctuates Calculation errors have serious impacts • Prevent penalties and reputational risk • Prevent assignee hardship / windfall

  7. Global Assignment Payroll – A Complex Process The majority of payroll providers are not experts in international payroll practice and compliance outside their own country’s borders. REALITY CHECK • My local payroll providers deliver compensation to my assignees according to the Letter of Assignment. • My local payroll providers are withholding and depositing taxes appropriately. • I monitor exchange rates and cost of living data periodically to ensure no assignees are experiencing financial hardships (or windfalls) on assignment.

  8. Building a Best in Class Global Assignment Payroll Administration Program

  9. Best in Class = Compliant Do you Monitor Data Quality / Deadlines? Communicate with payroll teams and other income sources regularly Exchange compensation data at least quarterly Evaluate data quality each quarter Be aware of tax filing deadlines around the globe and schedule compensation collections appropriately

  10. Best in Class = Compliant Do you Review Local Payroll Delivery Results? Payments comply with your in-house policies (all pay/deductions included?) Calculated allowances / deductions include any “salary cap” or “annual maximum” requirements Ad-hoc payments are delivered on time (and turned off in subsequent pay period) Shadow payroll processes do not deliver net pay to assignees Split payrolls are delivered accurately in home and host country Hypothetical taxes are deducted appropriately

  11. Do you Communicate Effectively? Respect local processing deadlines in each country delivering pay and benefits Be concise in your instructions – create a standard format for delivery of pay If adjustments to pay are required, reach out immediately to assignee to explain how and when the problem will be corrected Work with local HR, Payroll and Finance teams to agree a plan of action Follow-up with assignee to validate adjustments are made successfully Best in Class = Compliant

  12. If global compensation and payroll services are performed in house, how do you evaluate whether administration is cost effective? Add up the number of resources in your company that participate in this process Identify the person(s) responsible for administrative oversight – confirm they have access to both home and host country data Evaluate your processes end to end – are they standardized? Easy to administer? Evaluate whether assignees are satisfied with the service and support currently provided Best in Class = Cost Effective

  13. If you outsource your Global Compensation and Payroll services for long term assignments… Are you getting the best service at the right price? Transactional Fees vs. Monthly Fees? Are you satisfied with your service providers? Are your internal teams / organization making your processes difficult to manage? What else would you want your providers to do for you? Best in Class = Cost Effective

  14. Best in Class = Comprehensive Building a Best in Class Comprehensive Assignment Administrative Solution

  15. Comprehensive Assignment Administration: Counseling Ongoing Counseling throughout the Assignment

  16. Comprehensive Assignment Administration: Pre-Departure Pre-Departure Assignment Approval with Client HR/Global Mobility Management Teams Client Policy Details Cost Estimate (Cost Projection Worksheet)

  17. Comprehensive Assignment Administration: Ongoing Ongoing Assignment Administration and Tax Year End Communication with Local Pay Agents Assignment Counseling Communication with Client Tax Advisors, Finance, and HR Teams Compensation Worksheet(Balance Sheet) Pay Instructions Reconciliation Total Compensation Collection Financial Reporting Letter of Assignment

  18. Comprehensive Assignment Administration: Repatriation Repatriation Final Tax Year Communication with Client Tax Advisors, Finance, and HR Teams Final Tax Year Financial Reporting Final Tax Year Total Compensation Collection

  19. Comprehensive Assignment Administration: Expense Management Ongoing Expense Managementthroughout the Assignment

  20. Comprehensive Assignment Administration: End to End Pre-Departure Repatriation Ongoing Assignment Administration and Tax Year End Assignment Approval with Client HR/Global Mobility Management Teams Communication with Local Pay Agents Assignment Counseling Communication with Client Tax Advisors, Finance, and HR Teams Final Tax Year Communication with Client Tax Advisors, Finance, and HR Teams Client Policy Details Reconciliation Total Compensation Collection Final Tax Year Total Compensation Collection Financial Reporting Letter of Assignment Final Tax Year Financial Reporting Cost Estimate (Cost Projection Worksheet) Compensation Worksheet(Balance Sheet) Pay Instructions Ongoing Counseling throughout the Assignment Ongoing Expense Management throughout the Assignment

  21. Q&A For a free consultation regarding your global assignment payroll administration program, please contact: Kathryn Cassidy kathryn.cassidy@sirva.com Christine Langlands christine.langlands@sirva.com

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