Payroll involves several risks, including:
Incorrect calculation of taxes
Failure to comply with local employment laws
Cyberattacks
Human error
Inaccurate record-keeping
If your organisation operates internationally, you must understand and comply with payroll regulations and tax systems in your employees’ jurisdictions. Failure to comply can lead to substantial penalties and reputational harm.
Outsourcing to an unvetted third-party payroll provider may also expose you to risks such as loss of control, data breaches, poor service and regulatory non-compliance by that provider. For this reason, it is vital to use a trusted, reliable provider.
Finally, be aware of internal fraud risks, which include: