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Global Regulation Changes Affecting Payroll in 2019
Each year, governments change regulations that affect payroll calculations and processing. Global payroll teams have to adjust procedures and ensure new requirements are being met to stay in compliance.
There is also added complexity this year with the implementation of Brexit, which will affect employees living or working in the UK. If your global payroll team canít keep up with the changes, your employee payroll is at risk. Here are just a few of the changes coming in 2019:
Payslips and auto-enrollment in the UK are changing. New payslip requirements are being implemented January 1stin the UK. Employers must now show the cumulative number of hours the employee is being paid for, or itemize the different types of hours and rates of pay for those hours if applicable. This change mostly affects hourly paid employees, but the changes are required for all employee types. Auto-enrollment minimum contributions are increasing again beginning April 6th, requiring employers to meet the minimum contribution of 3% or face strict penalties.
In the EU, payroll and global HR will be affected by the implementation of Brexit in March. If you have employees in the EU and UK, there are potential HR compliance issues if employee regulations differ once Brexit takes effect, so HR teams must ensure the employee handbooks, agreements, and other documentation remains the same. Employees traveling between the UK and EU could also face new visa requirements, so payroll and HR teams must remain vigilant related to employee-related laws and regulations once Brexit is in place.
In Canada, the premium rate and maximum insurable earnings rates are decreasing, while the rates for the Canada Pension Plan (CPP) are increasing beginning January 1st. The changes to CPP will be phased in over the next 7 years, increasing overall by 14% by 2025. Employers will need to adjust payroll and benefits plans to accommodate these new pension changes to ensure compliance.
As global regulations change, payroll teams in every country have to adjust procedures to maintain compliance. Preparing in advance for upcoming changes ensures your HR and finance teams pay your global employees accurately so you avoid audits, fines and penalties. If you would like to learn more about simplifying your global operations and payroll you can contact us here.