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15th January 2020

Potential Payroll Challenges Post-Brexit

Every business is considering how Brexit will impact operations, but payroll teams are wondering how it will impact payroll calculations and processing. For now, the current processes for payroll, tax payments, and benefit calculations are the same, but here are some potential challenges down the road once Brexit is implemented.

Benefits
Current UK benefits like holiday and maternity leave are determined by the EU directives on employment law, but once the UK leaves the EU, the government could potentially make changes that could impact payroll calculations. For now the holiday, maternity, and sick leave policies will most likely stay the same, but it is important to keep track of changes and consider the impacts to benefits made by the government post-Brexit.

GDPR and the future of Data Protection
If your business currently transfers data around the EU, you have most likely been following the regulations of GDPR since mid-2018. Once Brexit is complete, the European Commission (governing body of GDPR) will have the opportunity to provide the UK with permission to continue transferring data around the EU (called an “Adequacy Decision”). If the EU provides their approval, your business can continue using the same process to transfer data. But if the EU does not grant approval to the UK, the transfer of data across borders will be significantly impacted and could change the way you process and manage payroll for your employees living or working in the EU and UK.

With so many unknown outcomes of the implementation of Brexit and resulting regulation changes, payroll teams must keep up with the latest Brexit news and regulations that could negatively impact payroll compliance. Stay ahead of the changes and check our blog for the latest Brexit updates and impacts on payroll. Click here to learn more

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