Payroll carries various risks, including:
Inaccurate calculation of taxes
Non-compliance with local employment laws
Cyberattacks
Human error
Inaccurate record-keeping
If your organisation operates internationally, it is essential to understand and comply with payroll regulations and tax systems in your employees’ countries. Failure to comply can lead to substantial penalties and fines, and reputational harm.
If you outsource to an unvetted third-party payroll provider, you may face risks such as loss of control, data breaches, poor service quality or regulatory non-compliance by that third party. For this reason, it is crucial to outsource to a trusted, reliable provider.
Finally, be mindful of internal fraud risks, which include: