Employment tax and costs

In control of employment costs and risks

Employees are an organisation’s biggest cost and its biggest risk. Dealing with wages and incentives - and the employment taxes and other statutory on-costs paid to the authorities - as well as administration of the process is complicated and fraught with risks. Organisations are increasingly complex with businesses in multiple territories, complex interactions among stakeholders, workers crossing borders every day and the myriad different country and regional legislation and taxation regimes to deal with. Added to this are new business models and an increasingly non-traditional workforce mix, bringing together employees and a vast array of different contractual arrangements, ‘gig’ talent and other contingent workers.

“In today’s world innovation outpaces legislation and regulation. When regulators catch up the impact on business can be abrupt and full of risk.”

Rohan Geddes, Joint Global Leader Employment Tax and Costs

“Given the growing focus on labour taxes globally, today’s employment tax function, and its leaders, are central to compliance and governance in almost every territory. A fit for purpose global strategy is a must.”

Ken O’Brien, Joint Global Leader Employment Tax and Costs

Do you know how much you pay in global employment taxes and what element of this is controllable? How do you keep up to date with current or impending legislative change? Will your organisation be impacted by minimum wage or pay discrimination reporting in one or more of your trading locations? Are you using your payroll function to incorporate people analytics and reporting capabilities?

How we can help you

PwC’s employment tax and cost specialists take a proactive and global approach to the often neglected on-costs associated with remunerating a workforce. We also look at how effectively company employment tax functions support corporate business needs and strong compliance and governance. We look for ways to reduce a company’s workforce costs without reducing the size of its workforce. We can help with:

Employment tax

We help you to understand and comply with your employer taxation obligations and to prepare for tax authority reviews. We help you to validate your internal processes to control risks and costs and - if compliance failures occur - we work with you on remediation and can negotiate with tax authorities on your behalf.

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Employment risk

We help you to understand and mitigate current and emerging employment risks caused by legislation and regulation - including minimum wage, pay ratios and other pay fairness issues. We help you strengthen your risk management controls, policies and procedures. We work closely with PwC’s employment lawyers to identify risks related to employment structures and contracts.

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Employment cost reduction

We help you understand your total employment tax costs and to identify the controllable element. We help you to restructure pay and benefits arrangements, such as salary sacrifice schemes, flexible working arrangements and cost-effective benefit schemes to reduce employer costs. We help you to develop policies and processes to support cost reduction strategies. We use data and analytics to help you diagnose employment cost issues - including our Halo for Employee Expenses analytics to identify expense policy savings.

Find out more Halo for Employee Expenses

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Employment tax strategy

We work with our clients to develop their global employment tax strategy, prioritising key compliance imperatives, with particular focus on risk, reporting and systems in support of corporate business drivers.

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Payroll consulting

We can help you review the current design of your payroll delivery model and efficiency of your payroll function. We work with you to define the key requirements of improved payroll solutions and can help you create vendor selection criteria and advise on appropriate vendors that are right for your unique business. We can support you to review your risk and control infrastructure and advise on best practice governance of your payroll function. We also help you to make the most of your payroll data and to get your people analytics right.

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Contact us

Rohan Geddes

Partner, Joint Global Capability Leader for Employment Tax and Costs, PwC Australia

Ken O'Brien

Director, Joint Global Capability Leader for Employment Tax and Costs, PwC Ireland

Tom Geppel

Partner, PwC US

Rani Sakaya Johns

Partner, PwC Singapore

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