More short-term contracts are creating payroll issues
FTSE businesses could pay out up to £30m as a result of payroll mishaps, and that spend could increase as companies look to expand their number of short-term contracts.
Of 193 global organisations studied by the PwC, many found that as they expanded globally and recruited more international employees they encountered issues with individual tax regimes and payroll. Worryingly, this problem looks set to rise as 89% of those surveyed plan to further increase their short-term contracts.
As businesses expand into new territories, the focus has shifted from long-term secondments to short-term contracts to allow for more global mobility. However, this shift can leave many businesses unsure how to handle payroll issues as they encounter new tax rules and regulations.
Payroll regulations will become increasingly complex
Speaking to City A.M. the business leader of PwC’s payroll offering Payright, Chris Watt, said: “Organisations are struggling with the increasingly complex and global nature of payroll. As they increasingly look beyond domestic boundaries, the complexity of their payroll operations grows too.”
“It’s crucial businesses have a payroll that’s not just fit for today, but is capable of dealing with the increased complexity and regulations coming in the future.”
Payroll slip-ups can cause workers to leave
Whilst minimising payroll slip-ups becomes a priority, it has already had an effect on workforce retention and morale. Payroll software provider Sage announced earlier this year that 35% of people are unforgiving of payroll errors, and would even have reason to leave their job if they were paid incorrectly.
As well as giving cause for an employee to look elsewhere, a payroll mistake can also lower morale, as 44% of those surveyed in the Sage study said being paid late or incorrectly would lower their levels of job enjoyment.
Speak to Portfolio
If you’re finding the growing nature of payroll to be too complex, then it’s important your business or payroll department has high-calibre professionals who are adept at handling complicated cases.
If you are looking for payroll staff – or are seeking your next career opportunity – get in touch with Portfolio on 020 7274 9455 or email recruitment@portfoliopayroll.com.
View Our Resources
Government reassesses its Making Tax Digital plans
HMRC has delayed its plans to implement a fully digitalised business tax system until 2019. The...read more
Public Sector Payroll
Payroll jobs for public sector positions are highly specialised, with a number of important con...read more
THE SUNDAY TIMES 100 BEST SMALL COMPANIES AWARD FOR 2017!
Portfolio Payroll Ltd have achieved 82nd in the prestigious Sunday Times Top 100 Best Small Companie...read more
The Role Of An Expat Payroll Consultant
In a world where companies operating on a global scale is becoming increasingly common, it is p...read more