NorthgateArinso (internationally now known as NGA Human Resources) recently released their Payroll Complexity Index, outlining the 10 most complex countries from a Payroll perspective.
Australia was not one of them.
The countries with the most overall payroll complexity are:
- The Netherlands
- United States
- New Zealand
How was the list determined?
723 submissions across 35 different countries from a variety of sources including – subject matter experts in payroll, local payroll consultants, outsourcing experts, and system engineers responsible for updating global payroll systems.
The report looks at five key areas:
- Complexity of gross-to-net calculation
- Union involvement and collective labor agreements
- Employee benefits
- Local, industry-specific regulations
Personally I would have expected to see Australia listed, but then the only other countries I have experienced payroll systems are the USA, Canada, Singapore, and Hong Kong.
Australia only receives a single mention through the whole report – our tax filing requirements are yearly in the same light as USA and Singapore.
Some eye opening facts from the report:
- Mexico has 25 legal updates a year.
- Argentina has 25 different “employee populations” – employee groups that can be identified within a country, who require a dedicated calculation method for payroll.
- New Zealand has the highest union influence over payroll.
- Italy has the highest number of reported fields reported to government.
The report is an interesting read. If you are involved in Payroll in any manner I would suggest you download a copy from the NGA Human Resource web site.
Do you agree with the findings? Or should Australia have been listed in the top 10?