UK and Ireland Shadow Payroll Solutions

Whilst most organisations have robust payroll processes in place to manage their domestic workforce population, operating a shadow payroll can be complex, due to the unique types of benefits and expenses provided to internationally mobile employees.

This can often involve obtaining information from multiple vendors and sources – sometimes with very short turnaround times –  and payroll teams may lack the resources, and international payroll knowledge to do this in-house.

In addition, some payroll systems are not designed to deliver tax withholding in multiple jurisdictions, and may lack the technical capabilities to deliver shadow payroll solutions.

In an increasingly global and digital economy, there is increasing pressure on employers to find innovative cross border solutions to hire, retain and engage the workforce of today.

Compliance with cross border payroll obligations has always been complex, but in the Post Covid Era, with a trend towards remote working and employees less willing to permanently relocate for work, this can become even more challenging for businesses as they seek to manage their tax and social security obligations in multiple jurisdictions.

Tax authorities are increasingly looking to maximise revenues and placing growing emphasis on corporate wage tax settlements in the face of declining tax revenues. Improvements in technology and global inter agency reporting have also enabled closer alignment between immigration and tax authorities, increasing the risk of inadvertent non-compliance being identified and penalties being imposed.