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Say Hello to Perpetual Validation and Tech-Enabled Global Payroll Compliance

Aidan O'Keeffe
Aidan O'Keeffe

Product Lead, Immedis

Dec 8, 2020 3 mins

This summer, Immedis introduced Perpetual Validation, an industry-first innovation that is changing the global payroll landscape. Before examining what Perpetual Validation means for customers, let’s start by explaining what we mean when we say Perpetual Validation.

What is Perpetual Validation?

As the name suggests, Perpetual Validation is a module that is continuously checking and subsequently validating the quality and completeness of data contained within the Immedis Platform. As a result, users can quickly identify gaps in their global payroll data, for any country, in real-time. This means that payroll teams can identify issues that may negatively impact the payroll cycle’s completion and can work to solve it before the payroll is run.

How Perpetual Validation benefits organizations

Perpetual Validation enables users to effectively manage integrated systems and global payroll data management intuitivley, bringing with it several business benefits:

Tech-enabled global compliance

One of the top concerns for organizations is maintaining compliance and global payroll plays a huge role.With Perpetual Validation, statutory compliance is ensured in all countries of operation without the need to have legal experts on the ground. This is achieved via upstream validation of data requirements to process payroll in each country. Local legislative prerequisites are introduced directly in the platform, continually prompting review as gaps in data are identified. The platform’s artificial intelligence (AI) looks at the overall data and determines where or what data is inconsistent or missing. For example, a statutory change in a particular country may result in the requirement for additional employee data. And all this takes place in real-time.

Greater confidence in payroll completion success

Payroll teams are measured on their ability to deliver a payroll that is on time and accurate. When gaps in payroll processing data exist, this can impact the team’s ability to deliver on this key performance indicator. But if you can easily see where payroll data errors are, you can deal with them proactively ahead of time. This incrementally impacts the successful completion of the payroll cycle, allowing businesses to deliver a right pay, right day promise.

Improved employee experience

Because you are notified if payroll is not going to run, you can avoid those situations where an employee does not receive payment. Consequently, employees enjoy a more positive experience when it comes to payday.

Process improvements

Removing rudimentary tasks from the workforce via process automation is key to giving payroll time to focus their attention on where further organizational efficiencies can be achieved. Perpetual Validation supports this in a couple of ways. The systematic validation of payroll data through technology significantly reduces manual data validation efforts. It also means there is no longer a requirement to develop a change file as all the changes are made directly in the platform.

The view inside the platform

Now that we know what Perpetual Validation is and how it benefits organizations let’s take a look inside the Immedis platform and see how the system works.

The Immedis global dashboard, as shown below, informs payroll where issues exist due to missing or incomplete data within employee records. The tabs on the dashboard’s right side reflect the number of records where data needs to be reviewed and the level of impact on the payroll run if action is not taken.

PV1-1Dashboard screenshot of global view

We categorize the impact to the payroll run as follows:

  • Errors (Red) – In this situation, this issue impacts the payroll run, and those involved will not be paid. For example, an employee in Canada cannot be paid if their Social Security Number (SSN) is not entered into the field.
  • Warnings (Amber) – In this case, the payroll will run, but there are some issues that you need to ensure are acceptable before running payroll. If these are not rectified, the pay amount received by the employee will be affected. For example, if you don’t have the SSN for an employee in the UK, you can still pay the employee, but they will be put on emergency tax. Not a great first month’s experience on the job!
  • Observations (Green) – In this instance, although the data is not wrong and will not impact payroll, it is inconsistent. For example, an employee that is not in receipt of a similar allowance that other people in their geo and job role are receiving will be flagged by the platform.

A country view can also be accessed, allowing you to drill down into specific countries to better understand where the issues lie.

PV2

Organizations can then take this down to the next level- the Pay Group level. Here the individual employee counts are provided, indicating those employees who may not be payroll ready.

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When you go a step further and drill into the actual employee record, you can assess what specific information is missing – without the need to be an expert on each country. The system will prompt the user as to what’s missing and the format it should take. The example below, shows the employee is in Canada, and the Immedis Platform is highlighting that the Social Insurance Number (SIN) is missing. The system informs the user of the format for inputs into this field, only saving when the SIN is inputted correctly and validated

PV4

Our mission to deliver touchless global payroll

Perpetual Validation is a critical component of the Immedis goal of touchless global payroll. By unpacking the data and ensuring it is complete and accurate, organizations can achieve improvements across key business areas, all with minimal manual input. From certainty in achieving local legislative compliance, completing a successful payroll cycle with greater confidence in the accuracy, and improving employee experience by ensuring your people are always paid the right amount, the global payroll process is changing.

To find out more about the Immedis Platform and how Perpetual Validation can help your organization, get in touch today.