Payroll carries several risks, including:
Inaccurate tax calculations
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 substantial penalties and fines, and reputational harm.
Outsourcing to an unfamiliar third-party payroll provider also carries risks, including loss of control, data breaches, poor service quality or that provider’s non-compliance with regulations. That is why it is vital to use a trusted, reliable provider.
Finally, be aware of internal fraud risks, including: