Payroll carries a range of risks, including:
Inaccurate calculation of taxes
Non-compliance with local employment laws
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 lead to heavy penalties, fines and reputational damage.
If you outsource to an unknown 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. That is why it is crucial to use a trusted, reliable provider.
Finally, be aware of internal fraud risks, including: