GLOBAL MOBILITY SERVICES
6-8 October 2015
Rome, Italy
2015 Global Mobility Forum
Next Generation Payroll – making the new reality your reality
Wojciech KupnyDirector – KPMG in SwitzerlandWayne SoontiraratnDirector – KPMG in United StatesDaniel BennettAssistant Manager – KPMG in Switzerland
3© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
PanelistsHartmut SpeckHead of Global Mobility Management‒ Siemens AG
Riikka Virtanen SchwitterHead of Global Mobility Compliance‒ Zurich Insurance Company Ltd.
Panel
4© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Agenda
WHAT IS IT ABOUT Challenges in the marketplace (10 minutes)
HOW TO SUCCEED Market driven discussion around implementing solutions and addressing the challenges (60 minutes)
- Client panel with interactive Q&A
SAMPLE SOLUTION Demonstration of a technology driven responseIN PRACTICE (20 minutes)
5© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Challenges in the marketplace
Instructpayroll data
Know what to report and where
Manage deferred
compensation
Track trailing payments
Handle exceptions
Maintainpaycodes
Comply with tax and payroll obligationsCalculate
Grossups and separate from
reportable items
Compile year-end
statements by country
Identify missing compensation
Report total compensation
and cost
Determine nature of pay elements
(shadow and paying)
Global Payroll Compliance
Consolidate multiple data
sources
Reconcile payroll instructions
Analyze employee costs
Budget employee costs for upcoming
assignments
Support internal recharge
initiatives
Control internal audit log
Standardizepayroll element
descriptions
6© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Global payroll compliance challenges
UK Real Time Information (RTI) and
German wage tax requirements
Brazil double taxation and social
security issues
US and Canada business travelers
India data protection and privacy laws
Australia other reporting (Fringe
Benefits Tax)
China complex tax calculations
Implementing a Solution
8© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Requirement for change?
Which of the following factors best describes why your organization is taking the initiative to tackle global payroll compliance for mobile employees?
Press “1” for Increased risk due to regulatory environment
Press “2” for Internal cost management focus
Press “3” for Following the marketplace (my competitors)
Press “4” for Other
Press “5” for We have not yet taken the initiative
9© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Who is taking the lead?
Which business function is taking ownership of global payroll compliance initiatives in your organization?
Press “1” for Global Mobility Team
Press “2” for HR
Press “3” for Finance
Press “4” for Group Tax
Press “5” for Local Payroll Teams
10© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What are the management options?
Which of the following best describes your current approach to managing payroll compliance for globally mobile employees?
Press “1” for Fully Outsource
Press “2” for In-house
Press “3” for Partially Outsource and in-house
Press “4” for Other
11© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What are the determining factors?
Which of the following factors best describes why your organization has chosen your current approach?
Press “1” for Budget or lack thereof
Press “2” for Resources or lack thereof
Press “3” for Technology solution
Press “4” for Other
12© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Where do you start?
Other than long-term assignees, which population of mobile employees is currently at the top of your radar for global payroll compliance?
Press “1” for Short-term assignees
Press “2” for Commuters
Press “3” for Business travellers (including state-to-state)
Press “4” for Combination of the above
Press “5” for None of the above – we are still focused on long-term assignees
13© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Organizational History
Has your organization changed its strategic approach to payroll compliance for mobile employees over the last 3 years?
Press “1” for Yes
Press “2” for No
14© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
If you had the budget, where would you spend it?
Assuming budget is available, where would you make the investment in your ongoing quest to be payroll compliant?
Press “1” for Additional internal headcount
Press “2” for Upgrade to internal systems and technology
Press “3” for Outsourcing to an external provider
Press “4” for Other
15© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What are the benefits?
What is the most important benefit your organization would gain from a centrally managed global payroll solution other than compliance?
Press “1” for Integrated Structure – which cannot be expected when each country is left to do what they believe is best
Press “2” for Standardization and Understanding – consistent communications to assignees and payrolls
Press “3” for Control – reconciliations and definition of clear roles and responsibilities
Press “4” for Analytics – real time access to internal management reporting
Press “5” for Other
Introduction to KPMG LINK Global Payroll Manager (GPM)
17© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
KPMG Administration
Flexible system design
Default country taxability matrices maintained by KPMG global network
Master pay elements
Roles definition and security
18© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Client Administration
Versatile implementation
Client specific data and tax positions
Global pay code mapping
Local pay code mapping
Flexible importer
Payroll calendar and cut-offs
19© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Employee
Employee demographics
Social security status
Worksheet and allowance data
Total cost information
20© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Payroll
Payroll instructions
Reconciliations
Tax calculations
Drilldown capabilities
Snapshot of payroll progress
21© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Dashboard
User driven views
Configurable widgets
Process driven
Quick access employee details
Real-time updates
Demo
23© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm hasany authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Example Case
Assignment Initiation FormJoe Expat
Paying Payroll Home
Policy Home Terms (Tax Equalized)
Term 1 January 2014 - 31 December 2017
Location Switzerland to United Kingdom
Income Tax Reporting
Income Tax Withholding
Social Security Reporting/ Withholding
Thank you
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© 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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