Incorrect Tax Withholding Most Frequent Payroll Error: E&Y

New Delhi: 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 skeptical 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 percent) 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 percent) at present have a global payroll model, but this applies mainly to organizations that operate in mature markets and therefore are more likely to be able to adopt a truly consistent model, it added.
"Employee satisfaction spearheads business strategy in present times. Pay cheque being the biggest worry for any employee, a business can conquer this worry and ensure employee satisfaction, if its payroll function can win the trust of its employees," E&Y Tax Partner and National Leader (Human Capital services) Sonu Iyer said.

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