Deloitte Shared Services, GBS & BPO Conference › creativedestruction › assets › pdf ›...

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Payroll compliance and how to avoid the pitfalls Deloitte Shared Services, GBS & BPO Conference Berlin, Germany Rebecca Mullins & Eira Jones, Deloitte 22 23 September 2015

Transcript of Deloitte Shared Services, GBS & BPO Conference › creativedestruction › assets › pdf ›...

Page 1: Deloitte Shared Services, GBS & BPO Conference › creativedestruction › assets › pdf › ...Deloitte Shared Services, GBS & BPO Conference 2015 6 Payroll Compliance 27% €8.4m

Payroll compliance

and how to avoid the

pitfalls

Deloitte Shared

Services, GBS &

BPO Conference

Berlin, Germany

Rebecca Mullins & Eira Jones,

Deloitte

22 – 23 September 2015

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Introductions

Types of compliance

The potential impacts of non-compliance

What determines success?

Good practice

Agenda

2 Deloitte Shared Services, GBS & BPO Conference 2015

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Payroll Compliance Introductions

3 Deloitte Shared Services, GBS & BPO Conference 2015

I have over 18 years’ Payroll consulting experience. A Fellow

of the CIPP and named in Payroll World’s Top 50

professionals in 2015, I lead our UK Consulting Payroll

capability and have a wide breadth of experience.

I have project-managed many stand alone Payroll projects

and the Payroll aspects of large scale global transformations.

My expertise in all areas of Payroll (including employee

benefits, expenses and statutory reporting) has been gained

through working both vendor and client-side on projects

which have involved function reviews, global risk and

compliance assessments, requirements gathering and

documentation, vendor selection and product evaluation.

I am a employment tax adviser specialising in the design,

delivery and taxation of employee remuneration. With over 14

years’ experience in working with multinational organisations, I

have extensive experience in advising clients on the

development of processes and controls to support

employment tax compliance both inside and outside the

shared service environment and within and without the Payroll

function.

My current focus is on supporting organisations to develop the

capability of Payroll functions in relation to employment tax

knowledge, controls and processes both in the UK and

globally.

Rebecca Mullins

Senior Manager,

Consulting

Eira Jones

Director, Tax

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Types of compliance

Deloitte Shared Services, GBS & BPO Conference 2015 4

Payroll Compliance

INTERNATIONAL

REQUIREMENTS GOVERNMENT

INTERNAL

THIRD PARTY

DATA REGULATORS

VENDOR

ETHICAL There are many

different types of

compliance

requirements that

organisations need

to meet.

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The potential impacts of non-compliance

Deloitte Shared Services, GBS & BPO Conference 2015 5

Payroll Compliance

Penalties Fines

Sanctions

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Some interesting (random) facts

Deloitte Shared Services, GBS & BPO Conference 2015 6

Payroll Compliance

27%

€8.4m

£883k

10%

Payroll Fraud happens in 27 percent of all businesses, with the average instance lasting about 36 months

In 2014 an Airline was ordered to pay more than €8.4m for incorrectly employing staff working in France on

overseas contracts

In 2015, 48 UK employers were named, shamed, fined and had to make back-payments for failing to pay the

National Minimum Wage. It cost them £883k

If your federal employment tax deposit is one to five days late, the IRS imposes a 2 percent penalty of the

amount due, rising to 10 percent if sixteen days late

Males with at least five years’ service are most likely to commit Payroll fraud

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What determines success?

Deloitte Shared Services, GBS & BPO Conference 2015 7

Payroll Compliance

Vendors

People

Process

Data

Systems

Good practice

combines all of these

aspects with

allocation of

responsibilities,

controls and

oversight

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Good practice - people

Deloitte Shared Services, GBS & BPO Conference 2015 8

Payroll Compliance

Training

Roles and

Responsibilities

.

Training

Empowerment

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Good practice - process

Deloitte Shared Services, GBS & BPO Conference 2015 9

Payroll Compliance

Contain

Controls

Documented

Current

Owned Followed

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Good practice - data

Deloitte Shared Services, GBS & BPO Conference 2015 10

Payroll Compliance

Audited

Documented

Owned

Secure

Secure

Audited.

Owned.

Current Documented

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Good practice – systems

Deloitte Shared Services, GBS & BPO Conference 2015 11

Payroll Compliance

Fit for

purpose

Controls

Documented

Automated

controls

Compliant

Documented

Fit for

Purpose

Automated

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Good practice - vendors

Deloitte Shared Services, GBS & BPO Conference 2015 12

Payroll Compliance

Roles and

Responsibilities

Documented

Engaged

Accountable

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Good practice

Deloitte Shared Services, GBS & BPO Conference 2015 13

Payroll Compliance

Vendors

People

Process

Data

Systems

Proactively

manage risk,

anticipate change

and achieve the

right level of

oversight

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Questions

Deloitte Shared Services, GBS & BPO Conference 2015 14

Payroll Compliance

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each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and

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15 Deloitte Shared Services, GBS & BPO Conference 2015