Payroll carries multiple risks, for example:
Inaccurate tax calculations
Failure to comply 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’ jurisdictions. Failure to comply can lead to significant penalties and fines, and reputational damage.
If you outsource to an unfamiliar third-party payroll provider, you may face risks such as loss of control, data breaches, poor service quality or regulatory non-compliance by that provider. That is why it is crucial to outsource to a trusted, reputable provider.
Finally, be aware of internal fraud risks, which include: