Payroll involves several risks, including:
Incorrect tax calculations
Non-compliance with local employment legislation
Cyberattacks
Human error
Inaccurate record-keeping
If your organisation operates internationally, you must be aware of and comply with payroll regulations and tax systems in your employees' countries. Failure to comply can attract substantial penalties and reputational harm.
Outsourcing to an unknown third-party payroll provider can expose you to risks including loss of control, data breaches, poor service quality or regulatory non-compliance by that provider. For this reason, use a trusted and reliable provider.
Finally, be mindful of internal fraud risks, such as: