Payroll involves a number of risks, including:
Inaccurate tax calculations
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 rules and tax systems in the countries where your employees work. Non-compliance can lead to significant fines, penalties and reputational harm.
Outsourcing to an unvetted third-party payroll provider can create risks including loss of control, data breaches, substandard service or the third party’s regulatory non-compliance. That’s why choosing a trusted, dependable provider is essential.
Finally, be aware of internal fraud risks, which include: