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GPMI Webinar Review

Webinar Details Global Payroll Control Framework

The creator of the Global Payroll Control Framework (GPCF) explained its concepts and the reasons behind it in a two-part GPMI webinar.

By Kerry Cole

The creator of the Global Payroll Control Framework (GPCF) explained its concepts and the reasons behind it in the two-part GPMI webinar “How to Take Charge With a Global Payroll Control Framework.

Max van der Klis-Busink,Payroll Manager-Europe for Crocs Europe BV, led his audience through his framework, which he based on the Internal Control Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). He previously detailed the framework over three consecutive Global Payroll issues in November 2015December 2015, and January 2016

“In my work as Payroll Manager and Senior Consultant at a Big 4 consultancy company, I was lucky enough to see how internal and external events really affected payroll,” he told the webinar audience. “Out of these events I have identified three trends that have, and are still having, an effect on payroll and really demanding each payroll function to be in control of payroll.”

The three trends are: 

  1. Legislators around the world have responded to fraud cases with stringent legislation such asthe Federal Deposit Insurance Corporation Act (FDICA), Sarbanes-Oxley Act (SOX), and Japan’s Financial Instruments and Exchange Law, often referred to as J-SOX.

“It’s always legislation in response to fraud cases that really hits the news,” he said.

  2. Governments are implementing new regulatory models for their supervisory duties, the drivers of which are limited resources to detect noncompliance and society’s demand for accountability to taxpayers.

He said this trend is “really hot in Europe” and has led to the introduction of “horizontal monitoring” or “cooperative compliance”—transparency in exchange for certainty on your tax position. To participate, organizations need to show how they are in control.

“No local tax authority will ever say how you have to be in control,” he said. “You will have to come up with a solution, and they will ultimately sign off on it, but they will not be an external consultant for you.”

  3. New service and technology solutions are changing the way multi-country payroll is and can be run. This has an enormous effect on how organizations organize payroll.

“If you are in the world of payroll, you’ve noticed the way we run payroll has changed over the years, not only in the scope of your countries but also in the technology you can use.”

The GPCF is a best practice method to help ensure compliance with internal policies and international payroll regulations, as a response to the three emerging trends. The GPCF is laid out in four sections:

  1. Global Payroll Objectives
  2. Global Payroll Control Components
  3. Global Payroll Operating Model
  4. Country Standard Operating Procedures (C-SOP)

“These four sections interact, are interdependent, and equally important,” he said. “It’s a classic concept: without one, all is none.”

He concluded the webinar by saying that those who follow the GPCF can answer confidently if an executive asks, “Who can really guarantee me our payroll function complies with all internal policies and (inter)national payroll rules and regulations? Show me!” 

Mark A. Thielmann, GPMI Instructional Designer, hosted the two-part webinar, which is available On Demand