Who Does Payroll Cover - Global Payroll Reporting Requirements for Non-Employees (Sep 23)
Category: Tax | Duration: 1hr | Tag: VODSEFEUK23D1S4 | Type: Video | Course Level: Intermediate | Speaker: Tim Kelsey | Date: 12/09/2023 13:30
Payroll is primarily about calculating, paying and reporting salary paid to employees but who else might be dragged into the payroll net? Many countries will set requirements for payroll style withholding and reporting and if you are operating overseas you might be surprised just who you will have statutory responsibilities for. Examples of payees that you may have obligations for include:
Paying people is payroll business, and your company will likely expect you to be an expert in all aspects of such payments. And if a responsibility for making deductions is also included, then it’s difficult to see how such work will not end up in the payroll team’s lap. A further driver for such arrangements has been an increasing global focus on employment status and the attendant loss of taxation revenue that national governments perceive to be the outcome when people are classified as self-employed. Just consider the impact of the recent cases involving Uber and Lyft.
By requiring payers to in effect operate payroll style deductions much of the attraction of self- employment is removed. But careful consideration of such records is needed – for example such records should not inflate headcount statistics for determining employer levies set by employee numbers.
Tim Kelsey