Taking your business global is exciting, but not an easy task. There are so many challenges to overcome in ‘going global’, that it’s all too easy for an organization to get distracted from reaching its overarching goals. Navigating year-end tax reports in a timely, accurate, and compliant manner is a headache for businesses of every size. Small- to medium-sized business owners in the US, on average, spend two full weeks a year compiling reports on federal taxes alone. When the year-end reporting takes on a global nature, across multiple countries, the headache intensifies.
The only solution to ensuring year-end tax reports are compliantly filed across multiple countries is through a global HRIS. Failure to file year-end tax reports on time can have huge financial and reputational ramifications. The IRS alone issued $4.27 billion in fines to organizations for reporting errors. With governments increase in investigating non-compliance of organizations, the services of a global HRIS to ensure compliance, becomes indispensable.
What is Global HRIS and How Does It Help in Year-End Reporting and Compliance?
The Human Resource Information System (HRIS) is a software that enables organizations to manage multiple human resources functions automatically and electronically. A global HRIS takes the management of HR functions to a global level, combining different processes and systems across different countries, to ensure the easy and compliant management of employees and employee related data. Giving access to a single self-service interface for both employees and managers, a global HRIS provides efficiency, compliance, and control of worldwide HR functions.
Year-end reporting for organizations requires a lot of work. The more countries your business operates in, the more work there is to do. The complexity is heightened when you throw into the mix variable fiscal years and reporting dates. In the US, the year-end for payroll tax reporting is December 31st, whilst in the UK the tax year runs from April 6th to April 5th. On top of that there are numerous files to report, deadlines to meet, and damaging penalties to face for non-compliance.
Global Payroll System
A global HRIS reduces the risk of non-compliance in year-end reporting with auditable processes and database management tools. It connects and automates HR systems and functions, allowing your organisation to centrally manage and monitor HR process regardless of time zone or country. The global HRIS systems offer a global payroll system which adheres to local laws and regulations, as well as a centrally managed global funding process where local and governmental authorities receive funds directly to their accounts. A global payroll system ensures your employees and contractors are paid on time, but also compliantly, with the complexity of labor laws and individual benefits overcome with automation and ease.
Game changing regulations, such as the FLSA overtime rule, mean keeping stricter track of for employers. By connecting to time management systems, a global HRIS tracks all employees, regardless of location, and makes it possible for alerts to be given when employees are reaching their overtime limits.
The importance of compliant data management and the need for effective global HRIS solutions can be best seen in how GDPR is impacting heavily upon global employment services and data handling. Failing to manage your data compliantly can be costly. Fines levied on organizations in the UK for non-compliance of data management have doubled since 2015, with Brexit and GDPR only adding further concerns to HR leaders.
An effective global HRIS system utilizes an employee self-service function. Providing employees with access to view or edit information and upload documents improves the overall efficiency of the HR department and aids in compliance. Key Information required for the year-end reporting is made available at the touch of a button. Using a global HRIS system from the very onset of the onboarding process to the time of offboarding, enables an applicant to be turned into an employee with similar ease and all the time, the data being stored and managed with full compliance.
No Headaches with a Global HRIS
Year-end reporting and adhering to global compliance need not be the headache it sounds. An automated global HRIS system reduces the error-prone human element, providing real-time data access so that your organization can monitor whether you are complying with certain regulations at any given moment, and not just at year-end. The collection, storage and management of data is controlled centrally in full compliance with the ever-changing important global regulations. By having all the required information needed for any year-end reporting or audits of any kind, gives your organization the freedom to report in a timely and compliant fashion, allowing you to focus on driving your business forward.