California Payroll Conference

Transcription

1 California Payroll Conference September 11 and 12, 2014 Going Global by Jeff Fenter & Alex de Lorraine

2 Bit of Bio Jeff Fenter Jeff Fenter is the Senior Manager of Global Employment Tax at Google Inc. and responsible for compliance, strategy and audit defense in 57 countries. Previous to joining Google, Jeff was a Director of Employment Tax Consulting at PwC. Jeff has over 18 years of experience as a employment tax professional responsible for developing and implementing strategies to manage the complications of domestic and global payroll and employment tax issues. Alex de Lorraine Alex de Lorraine is Head of North America Payroll Operations at Google Inc. and Motorola Mobility. Previous to joining the payroll department he was managing Global Invoice Operations for Google s European, Middle Eastern and African entities. Alex has over 12 years of experience developing and implementing strategies, improving complex processes, managing projects and operations.

3 California Payroll Conference September 11 and 12, 2014 Going Global Global Employment Tax & Compliance Jeff Fenter

4 Global Tax - Environment US based corporations/businesses growing outside of the US Financial needs of governments New legislation and taxes Increased audit activity Overall focus on Risk and Governance

5 Primary Areas of Tax Compliance Withholding & Taxation Payment of Taxes / Remittances Filings & Returns Accuracy Timeliness

6 Who is responsible for tax & compliance? Who is Responsible? The person assigned the work Who is Accountable? Who is Consulted? Who is Informed? The person who makes the final decision and is the ultimate owner The person who needs to be consulted before the final decision The person who must be informed that a decision has been made

7 Structuring a Global Tax Department Centralized Decentralized Central management with local delivery Shared Service Center? Tax Centers? Co-Sourcing?

8 Global Tax Organizational Design Considerations / Questions Who will you interact with What services will you provide How will you interact with stakeholders How will the business operate What metrics and data will you rely on What systems will you use How will you be structured What resources and skills are needed Where will you be located Common denominator STAKEHOLDERS SERVICES CHANNELS PROCESSES INFORMATION TECHNOLOGY ORGANIZATION PEOPLE LOCATIONS

9 Tax People, Process, Technology People Roles: Governance Source of knowledge (SME) Managing law and regulation changes New Programs implementation Understanding and managing tax authorities Audits and audit strategy Communications and reporting out Vendor management

10 Tax People, Process, Technology Process Roles: Record retention Exposure analysis and risk assessment tracking and mgmt. Change management Audit management Technology Roles: Payroll process & intakes Benefits process & intakes HR process & intakes Monitoring processes

11 Challenges Who is responsible for compliance and how does that interact with tax? Tax and compliance is impacted by HR, Fiance, Payroll, Compensation, Legal, and many more that have opinions, concerns, and exposure related to tax compliance Is tax a consultant or is tax a decision maker? Are roles and responsibilities clearly defined? Globally vs. Regionally? Are relationships strong and working? Are skills and resources better served at the local location vs. a regional or global location People recruitment, training, retention Technology or lack of technology

12 Thank you for your attention

13 California Payroll Conference September 11 and 12, 2014 Going Global Global Payroll Operations Alex de Lorraine

14 Automating Source to Gross Original Business Problem Our Solution: gpayroll Quick Demo Impact Remaining Gaps/Longer Term Vision Discussion

15 Problem: Cycle Time

16 Why did we bother? Extensive manual processes required to prepare input files for 33 different EMEA PSPs and do 100% validation and reconciliation Related Issues Data quality was fragile - both inputs and outputs exclusive reliance on manual diligence Insufficient controls could easily forget a file or step Downstream Effect Stale data Delayed one-time payments Poor employee experience, especially for new hires

17 Our solution: gpayroll Allows us to import all pay-impacting source files Converts data into local currency as needed Parses files by country as needed Merges & Transforms data into a format our PSPs can consume Executes validation routines on this data to flag erroneous records Enables review & auditable correction of input errors/warnings Provides a control point to ensure all required files are uploaded Zips and encrypts files prior to them being sent to PSPs Reconciles return files from PSPs against inputs Serves as an archive for all payroll inputs in prior pay periods

18 Quick Demo Demo

19 gpayroll - The Homepage

20 gpayroll - Entity Selection

21 gpayroll Germany Home

22 gpayroll Pay cycle overview

23 gpayroll Upload Data

24 gpayroll / Validations

25 gpayroll Validations cont.

26 gpayroll Merge Outputs

27 gpayroll Encrypt and Send

28 gpayroll - Reconciliation

29 gpayroll Reconciliation cont.

30 gpayroll Reconciliation Errors

31 gpayroll - Archive

32 Impact Shaved off 5 days from our processing cycle. 4 days on the source to gross side. 1 day on the reconciliation side. In Ireland in first month live (Nov 13), gpayroll allowed us to include: 67 new hires 80+ job changes, and 300+ bonuses which would otherwise have been pushed to Dec payroll. We now have the tool live in 55 countries for some portion of the payroll process. We are now continuing increasing the usability including integrating a task management workflow.

33 What impact did gpayroll have? Shaved off 5 days from our processing cycle. 4 days on the source to gross side. 1 day on the reconciliation side. In Ireland in first month live (Nov 13), gpayroll allowed us to include: 67 new hires 80+ job changes, and 300+ bonuses which would otherwise have been pushed to Dec payroll. We now have the tool live in 55 countries for some portion of the payroll process.

34 What's next? Establish direct interfaces with all source systems Leverage return files from PSPs for global adhoc reporting Provide global consistency of output files where our PSPs cannot (GL Feed, Global Banking, Stock Recon Tool, etc) Organize data by employee to create a powerful admin tool for the payroll customer support team Incorporate task/ workflow/ compliance management so that there is one central hub for all operational activities in Payroll Create a management dashboard to improve operational oversight Enable secure file transmission/download access for PSPs

35 Discussion How do your cycle times and business cutoffs compare to Google s? How does your company handle source to gross file prep? Still manual? Using an aggregator? More accommodating PSPs? Custom interfaces to PSPs? Other home-grown tools? What level of reconciliations do you perform and using what tools? Eyeballing? Excel? Or None - It s the PSP s job to get it right the first time? Do you have a a global reporting solution? Do you have a task management/checklist solution? How do you conduct research when responding to employee queries? If we open-sourced gpayroll, would you be interested in using it and contributing to it s development?

36 Thank you for your attention