Case study 3
Bespoke payroll module to enable complex multiple payroll and tax calculations for offshore workforce.
client aims- Buy a bespoke system to handle their complex tax calculations automatically
- Convenience and resource efficiency - the iipay payroll system fits their needs precisely - no more manual payroll calculation
- Cost efficiency - custom module development was achieved for less than £10k where previous estimates for a bespoke system from other suppliers were nearer £100k
- Consolidation of International Payrolls
This Isle of Man registered oil service company has employees working offshore in the North Sea. Some non-EU employees are paid offshore out of IoM but most employees paid from northern Europe. Their situation was:
- Employees working in the North Sea are subject to taxation in the UK, Norway and the Netherlands. The company managed its payrolls in Excel and calculated tax liabilities manually.
- Use payroll functionality for UK, Norway and Netherlands with gross payrolls in USD and GBP
- Employees subject to tax in more than one country are added to multiple payrolls, all within the single iipay global payroll system with a Consolidation of International Payrolls facility
- iipay developed a custom module that apportions employees' monthly salary across their multiple payroll memberships, based on data exported from the company's staff roster
- Employees are paid one Net Pay in a single currency but multiple taxation records cover all the jurisdictions where they are liable for tax