Top 4 Benefits/Cost-Saving Measures for Unifying your Payroll
Unifying your global payroll each month will save your company several hidden costs. On top of saving costs from hiring less payroll vendors, you will also likely avoid several additional hidden costs.
The support of in-country local partners to make sure compliance issues are 100% taken care of is invaluable. The IRS estimates that within the U.S., 40% of businesses pay an average payroll penalty of $845. Often, this happens because of failure to deposit withholdings, or incorrect filings.
By working with a global payroll provider, your local, in-country compliance requirements will be managed by in-country experts and centralized. Your global provider will also keep you up-to-date on all compliance changes, while handling everything for your team.
Errors and Miscalculations
Third-party tools and processes like auditing software and aggregation technology will quickly help grow your bottom line. A single dashboard that provides a comprehensive view of your payroll costs is available at the click of a button, allowing you to see where your funds are distributed.
These tools help to avoid overpayments, which oftentimes are not caught quickly enough—and are more common around the times of holidays or during the distribution of expenses and bonuses.
Unifying your global payroll will help call attention to potential payroll fraud, which can include anything from workers adding hours or to deliberate worker misclassifications, pay-rate alterations, or outstanding advances that are never repaid to the company.
Also, with a centralized provider, rather than having IT costs that are associated with managing multiple vendors for compliance issues, this cost only occurs once. In addition, with less vendors there is less of a risk of data breach.
Better Understanding of Organizational Costs
Ultimately, working on a unified payroll system will lead to less costs and less staff needed to run payroll and payroll costs associated with communicating between teams and auditing information. Doing business with a single, global provider not only benefits your economies of scale, but it also adds more features to your solution (including auditing and often business intelligence) which allows the opportunity to drive costs further down, while boosting quality.
Want to learn more? Join our private community discussion about unifying your payroll.