Incorrect Tax Withholding Most Frequent Payroll Error: E&Y

Bangalore: The present payroll practices, an essential element in employee satisfaction, faces hurdles like incorrect tax withholding, tax and regulatory changes, cost of solution, a study by global consultancy firm Ernst and Young (E&Y) said.

E&Y's survey, Global Payroll: Myth or Reality, reveals majority of multinationals want improvement in their payroll practices, yet they are sceptical about whether payroll providers can deliver a comprehensive global solution.

The survey covered 161 respondents comprising global senior payroll leaders.

"The E&Y survey reveals that incorrect tax withholding (24 per cent) is the most frequent payroll error, suggesting that the existing payroll solutions are unable to deal with increasing complexity relating to legal or regulatory requirements and therefore remain compliant," the survey said.

Only one in five of the respondents (22 per cent) at present have a global payroll model, but this applies mainly to organisations that operate in mature markets and therefore are more likely to be able to adopt a truly consistent model, it added.

Also Read:

Top 10 Indian Companies reatly Involved in Philanthropy

7 Biggest Illegal Businesses Across The Globe