Document Your Payroll in These 5 Key Steps

Just been told to take over another country’s payroll and have no clue how to do it? Don’t panic, we’ve got you covered.

Managing a new country’s payroll can feel overwhelming, but with the right approach, you can get up to speed quickly. Here’s a structured five-step method to document payroll effectively, ensuring compliance and efficiency.

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Step 1: Online Research

Start with online research to get a basic understanding of the country’s labour regulations. This not only helps you grasp the fundamentals but also leaves a good first impression on the person handing over the payroll to you.

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Where to look:

• Ministry of Labour website
• Social security administration
• Tax office and other government portals
• Payroll associations or professional bodies (if available)
• Industry reports or white papers specific to payroll and employment in that country

Use your browser’s built-in translator if the resources aren’t available in English. Additionally, check out this resource I’ve compiled: International Payroll Compliance.

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When reviewing official sources, take note of the following:

• Standard payroll cycle (monthly, bi-weekly, weekly)
• Tax brackets and deductions
• Social security contributions
• Employer obligations and deadlines

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By gathering this preliminary knowledge, you’ll be able to have more productive discussions during the handover.

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Step 2: Questionnaire

Before diving into discussions, prepare a structured questionnaire to guide the handover process. This will ensure that you capture all relevant information. Break it down into 3 key sections:

1.?Basics:

• Country and legal entity
• Number of employees covered by the payroll
• Internal and external stakeholders involved
• Payroll provider (in-house, outsourced, or hybrid model)
• Bank and payment processing details

2. Regulations:

• Key labour laws affecting payroll (e.g., working hours, overtime, leave policies)
• Time & attendance rules (e.g., clock-in systems, overtime approval process)
• Compensation & benefits structure (e.g., statutory vs. voluntary benefits)
• Mandatory deductions (e.g., income tax, pension, social security, union fees)
• Payroll cut-off dates and compliance requirements

3. Processes:

• Payroll input collection (who provides what and when)
• Payroll processing steps (calculations, approvals, exception handling)
• Output review (payslips, reports, reconciliations)
• Approval and sign-off procedures
• Payment and reporting deadlines

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