Keeping Payroll Compliant in the Age of Remote Work

⇨ With remote work scattering employees out over different geographic areas, companies may find it much more difficult to adhere to all the local regulations regarding payroll.

⇨ Organizations should search for cloud-based software solutions that allow them to keep track of employee locations.

⇨ Using advanced solutions to make remote work easier demonstrates to employees that the company is willing to be flexible and forward-thinking.

Following the COVID-19 pandemic, many organizations have kept in place their policies allowing their employees to work remotely. While these workers no doubt enjoy the flexibility of this option, it can present significant difficulties for the payroll department. Despite these added issues, payroll still must be completed on time.

To help organizations struggling with remote work issues, the payroll tax solutions experts at BSI shared several of the biggest issues payroll departments must contend with in regards to remote workers and how best to address the complications.

Issues with Remote Work

Payroll compliance – With remote work scattering employees out over different geographic areas, companies may find it much more difficult to adhere to all the local regulations regarding payroll. Businesses may be subject to penalties if they do not have up to date location information for all employees. This is made even more difficult by the fact that workers often relocate without disclosing it.

Organizations should search for cloud-based software solutions that allow them to keep track of employee locations. This allows companies to comply with tax regulations by letting employees easily update their information so the correct taxes can be withheld based on the jurisdiction.

Tracking Hours – Typically, managers are able to keep an eye on their employees to ensure they are on track to complete all projects in a timely fashion. With work from home programs, employers may be unable to keep track of how much their employees work. This can lead to unpleasant surprises if workers are not managing their time effectively.

To combat this issue, many organizations are leveraging strategies that track worker hours, such as an online tracking system or app in which workers can submit and validate timesheets.

Managing Benefits – Remote employees cannot access the same benefits as in-person employees. These include lunches, gym memberships, and more. Many companies are now thinking about offering stipends for office supplies and providing access to telemedicine to those staying home.

Leveraging Solutions

Ensuring that employees and their organizations remain compliant with all applicable regulations is a vital function for any enterprise. With many workers no longer showing up to offices in person, it is vital that companies adapt their policies to work digitally as well.

Organizations should find cloud-based payroll solutions to allow them to meet employees where they are. These solutions, like the ones offered by BSI, keep organizations insulated from any issues that remote work poses. It also demonstrates to employees that the company is willing to be flexible and forward-thinking.