Shadow payroll tax is a fragmented process. It’s difficult to track exactly what’s being paid where, by whom – and to gain an accurate understanding of what’s happening internally in your organisation, from an operational perspective.
Typically, tax data is collected using different systems, before being consolidated together somehow to create a file for the final overall tax calculation. This can be extremely costly and inefficient. It demands relatively high levels of resource both internally and externally, using skill sets which can vary greatly from country to country and involve several different departments – from HR to Payroll to Finance and beyond.
What’s more, where shadow payroll tax calculations are outsourced the cost may be ‘bundled in’ with those of other tax-related services to create one overall figure which offers little or no insight into what each individual tax element costs.
In short, there’s a lack of control, understanding and confidence that you’re paying the right amount of tax through your shadow payroll – or incurring the right amount of internal expense and vendor fees to get there.
This is not through any lack of effort by those involved. Rather, it’s the result of over-complicated, disparate systems and processes that don’t talk to each other and haven’t been configured to properly manage these kinds of tasks.
Aside from set-up and operational expenditure, your organisation may also be incurring additional hidden costs by calculating this way. For example, many vendors set a minimum charge per country for processing shadow payroll tax, depending on the employees and actions involved. This charge can vary widely depending on location. Without knowing markets intimately, you can accrue unexpected expenses.
Certino makes shadow payroll tax transparent. By automating calculations across the board, it removes all this uncertainty and hassle so you always know where you stand.
Instead of relying on part-time resources in multiple locations, you simply upload your employee reports in one place and our software does the rest. The result is accurate, informed tax calculations based on the latest industry information and accounting for individual company and even employee nuances. This software can also interface directly with your own existing payroll systems to create one seamless automated solution, with minimal disruption to your business.
Not only does this save you lots of time and money by centralising processes, but it also removes the need for costly outsourcing and internal staff. So, you can redeploy your employees to work on other valuable tasks instead. Plus, instead of paying unpredictable and potentially expensive vendor fees by country, Certino charges one flat rate across the board for shadow payroll calculations – which works out at roughly half the global average price.
It all adds up to a great solution for your business!
We’re here to discuss your international tax challenges and help you solve them. Please do get in touch.