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      Internationally active companies often face particular challenges when it comes to payroll accounting. For example, if there are expatriates, cross-border commuters or employees who work temporarily in a home office in Switzerland or abroad, the coordination and implementation of payroll accounting is complex. All relevant salary components must be correctly assessed under local tax and social security law.

      Technology that supports

      In addition, the home and host country payrolls must be synchronised. Data from one country must be reported to the other country and processed there. Local tax and social security requirements must always be taken into account. Additional challenges arise, for example, from the transfer of costs in cross-border situations.

      Watch this demo video to see how our Global Payroll Manager can help you manage and monitor the payroll processes for your globally seconded employees.


      Our range of services

      KPMG has had a market-leading solution, the Global Payroll Manager, for many years. As German payroll tax law places special requirements on German companies, we have developed a version specifically for the German market that enables companies to manage and monitor global payroll processes for employees working across borders.

      In the new design, a complete workflow has been integrated to improve user-friendliness for all stakeholders without sacrificing the functionalities of the existing technology.

      To generate data, the software solution utilises the relevant data and payment sources, for example from the ERP system. In a standardised data processing procedure, the salary components are assessed under tax and social security law (so-called country tax grid) - taking into account the tax characteristics of the employees.

      In the event of redundancies or missing data, a system error message informs the users and, if necessary, the locally responsible parties. After a fully automated check of the data, the Global Payroll Manager transfers it to a central salary database. Based on this, the software creates monthly and annual salary information for employees as well as comprehensive reporting.


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      Global Payroll Manager

      Den Gehaltsabrechnungsprozess im In- und Ausland bei international tätigen Arbeitnehmer:innen automatisiert steuern und überwachen.

      Global Payroll Manager at a glance

      • Preparation of payroll accounting

        Automated processing of salary data from all KPMG client payment sources

      • Checking the data

        Configuration of client-specific check logics to ensure data quality and data completeness

      • System-inherent communication and troubleshooting

        Communication on data abnormalities and troubleshooting with client contact persons within a closed environment

      • Tax assessment of salary components

        Linking of salary components with tax and social security assessment per country

      • Payroll Instructions

        Creation of (global) payroll instructions to instruct local client payrolls to ensure payroll compliance on a global level (complete reporting of data in the relevant payrolls)

      • Reconciliation

        Carrying out an automated check as to whether the values / wage types processed in Payroll correspond to those in the Payroll Instruction

      • Reporting

        Carrying out an automated check as to whether the values / wage types processed in Payroll correspond to those in the Payroll Instruction

      • Offsetting

        Client-specific automation of the cost transfer process in connection with international employee postings between the relevant cost centres (e.g. between the sending and receiving company / cost centre)

      • User Dashboard

        Cost overviews of the secondment programme and per employee based on real-time data

      Your advantages:

      • Flexible IT-based payroll management solution that can be implemented quickly and cost-effectively
      • Fulfilment of local tax and social security requirements by applying a flexible assessment logic at employee and wage type level
      • Simple and customised configuration of reports enables fast data exchange
      • Client and country-specific configurations are possible at any time
      • Simple integration of relevant (internal and external) payment and information sources
      • Automation of test steps for data processing and reporting
      • Simple operation and comprehensible work steps for easy onboarding of local contacts (Global Mobility and Payroll)
         
         
         

      Technical article on the Global Payroll Manager
      Excerpt from the trade journal Rethinking Tax, issue 02 dated 22 March 2023


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