Global Payroll, Compliance, and Tax News: January Round-Up

January is officially over, and with it the first month of regulatory changes and developments that are set to affect multinational organizations in their payroll processing and tax reporting. Here’s our monthly update featuring key regulatory changes impacting global payroll, along with the latest news on payroll-related penalties and fresh resources for industry insights.

South Florida Payroll Services Company Owner Pleads Guilty to $20 Million Tax Fraud

Matthew Brown, a Florida payroll provider, has pleaded guilty to charges of tax fraud amounting to $20 million. Between 2014 and 2022, one of Brown's companies, Elite Payroll, failed to remit Social Security, Medicare, and federal income taxes withheld from the wages of its clients’ employees to the IRS. Instead, he filed false tax returns underreporting these liabilities and misappropriated the funds. The total tax loss is estimated at $22 million.

Read more here.

U.S. Software Startup CEO Sentenced to Prison for Failing to Pay $14 Million Payroll Taxes

Andrew Park, former CEO of a U.S. startup software firm, was sentenced to 2.5 years in prison for payroll tax fraud, causing a tax loss exceeding $14 million. Between 2014 and 2021, he failed to pay employee withholding taxes to the IRS and neglected to remit company taxes. Despite being regularly notified about overdue payments, Park continued to withhold but not remit federal taxes. In addition to prison time, he faces three years of supervised release, restitution, and a fine.

Read more here.

EMEA: Summary of Italy's 2025 Budget Law

Italy has released its 2025 Budget Law which introduces several notable tax measures affecting corporations and digital services. Key provisions include:

• Alternative corporate income tax rate: A reduced corporate income tax rate of 20% is available for fiscal year 2025. To qualify, companies must reinvest at least 80% of their earnings into qualifying new assets, with a minimum of 30% allocated to advanced technologies and sustainable development.

• Extended tax incentives: The super deduction for labor costs related to new permanent hires has been extended through 2025, 2026, and 2027. Qualifying enterprises can deduct 130% of these costs, up from the previous 120%. Similarly, tax credits for investments in the Special Economic Zone for Southern Italy (ZES unica) have been extended to fiscal year 2025.

• Expansion of the Digital Services Tax (DST): The DST has been expanded by removing the previous national revenue threshold of EUR 5.5 million. Now, all multinational entities with worldwide revenues of at least EUR 750 million are subject to the DST on their Italian digital service revenues.

Read more here.

North America: First Repercussions on Payroll After Trump’s Inauguration

The incoming Trump administration has initiated several executive actions that are expected to impact payroll-related labor and tax regulations, employee compensation, retirement plans, and other benefit programs. These actions include a regulatory freeze, the pause of an earned wage access proposal, and changes to retirement plan guidance.

Read more here.

LATAM: Ruling on Income Tax Treatment of Online Games and Bets in Brazil

Brazil's Federal Revenue Office (RFB) has issued new guidance on the taxation of gains earned from online games and betting. Key ruling highlights include:

• Gains from games with a "performance component" are considered remuneration and are hence subject to monthly progressive withholding tax rates.

• Regarding foreign-source winnings from online games and bets, Brazilian residents must pay monthly taxes.

• Fixed-odds betting prizes from Brazilian sources are taxed at 15%.

Read more here.

APAC: Australia Enforces New Criminal Underpayment Laws

As of January 1, 2025, Australia has enacted new laws criminalizing the intentional underpayment of employees' wages or entitlements. The Fair Work Ombudsman (FWO) is authorized to investigate such offenses and refer cases for criminal prosecution. Convicted individuals may face fines, imprisonment, or both.

Read more here.

Estonia is set to implement significant tax reforms in 2025 and 2026, affecting both individuals and businesses. Key changes include:

• Income tax adjustments: The flat rate for personal income tax will increase from 20% to 22% starting January 1, 2025. Similarly, the corporate tax rate will rise to 22% from the same date.

• Modification to the value-added tax (VAT): A temporary defense tax will raise the standard VAT rate by 2 percentage points, bringing it to 24% from July 1, 2025. Additionally, VAT on accommodation will increase from 9% to 13% starting in 2025.

• Introduction of new taxes: Effective January 2025, a two-part vehicle tax will be introduced, comprising a registration fee upon first registration or ownership transfer, and an annual tax based on factors like weight and CO₂ emissions. To fund increased defense spending, a temporary 2% defense tax will be applied to individual incomes and corporate profits starting in 2026.

Read more here.

Payroll Guide

The Complete Payroll Guide for Estonia

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UK: Deadline For Final Payroll Report for 2024/25 Is on April 19th

Employers in the United Kingdom must submit their final Full Payment Submission (FPS) for tax year 2024/2025 by April 19th. With this final payroll report, they effectively inform the HMRC of any final payments made to employees and ensure that all income and deductions for the tax year are reported correctly.

Read more here.

With the current payroll talent shortage, there are plenty of exciting opportunities for payroll professionals. Here is an overview of some current payroll and compliance job openings.

Payroll Specialist - Native Teams

Native Teams is seeking a Payroll Specialist to support its global expansion by providing payroll services for international clients. The role requires at least two years of payroll experience, strong English skills, and expertise in German and Austrian payroll legislation. Candidates should have a degree in Economics, proficiency in MS Office, and strong analytical abilities. The position is fully remote.

Find more details here.

Global Payroll Product Specialist - Rippling

Rippling is seeking a Global Payroll Operations Specialist to manage payroll operations in France, ensuring compliance and improving payroll software functionality. The role involves collaborating with engineering and product teams, resolving complex payroll issues, and optimizing payroll processes for efficiency. Candidates must have deep expertise in French payroll, experience working with regulatory agencies, and strong analytical and communication skills in both English and French.

Find more details here.

Global Process Owner Payroll - Indorama

Indorama Ventures GSL seeks a Senior Payroll Specialist to lead payroll projects, manage escalations, and drive process improvements. The role involves ensuring compliance, integrating payroll systems, and collaborating with vendors and international teams. Candidates need payroll implementation and project management experience.

Find more details here.

Global Payroll Implementation Manager - Revvity

Revvity is seeking a Global Payroll Implementation Manager to lead payroll and time & attendance system implementations, primarily in Europe. The role involves managing projects, collaborating with stakeholders, coordinating with vendors like Neeyamo, and ensuring compliance with payroll regulations. Candidates should have strong payroll experience, excellent project management skills, and fluency in English.

Find more details here.

Business Process Expert Payroll - Merck Group

Merck Group is seeking a Business Process Expert (BPE) Payroll to lead global payroll and time & attendance projects, with a focus on Germany. The role involves managing payroll strategy implementation, process improvement, vendor management, and system transitions. Candidates should have 8+ years of experience in German and global payroll, project management, and payroll IT systems.

Find more details here.

Payroll is all about numbers. Here are some interesting facts and statistics from the global payroll space.

• 60% of organizations now have automated data collection in place (Source: ADP).

• 40% of UK companies are planning to outsource payroll (Source: Evelyn Partners).

• 75% of millennials say Earned Wage Access availability would influence their acceptance of a job offer (Source: PYMNTS).

GPA Payroll Summit in London

The GPA Payroll Summit 2025 is scheduled for Thursday, March 6, 2025, in London. This event aims to provide Payroll and HR professionals with essential insights to enhance the efficiency of their UK, in-country, or global payroll operations. Expert-led sessions will address challenges anticipated in 2025 and beyond, covering topics such as UK employment law updates, holiday pay compliance, global mobility, EU pay transparency, and the integration of artificial intelligence in payroll.

Read more here.

Lano Blog

Top payroll conferences and congresses to attend in 2025

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Anita Lettink on EU Pay Transparency Directive Readiness

In an inspiring new piece published on LinkedIn, Anita Lettink, HR & payroll tech advisor, speaker, and author, takes a deep-dive into the EU Pay Transparency Directive, and explains what organizations can do if their country hasn’t released local guidelines yet.

Read the full article here.

The Payroll Disruptors Digest: Spotlight on AI’s Potential for Payroll

In the latest edition of his bi-weekly LinkedIn newsletter, The Payroll Disruptors Digest, Nick Day—payroll and HR recruitment expert and founder of JGA Recruitment—explores the key aspects of unlocking AI’s potential in payroll and how this new AI-powered world might transform the way we think about recruitment and talent.

Read the full newsletter here.

Inspiring Podcast Episode: Exploring the Power of AI in Payroll

In episode 73 of the HR & Payroll 2.0 podcast, hosts Pete Tiliakos and Julie Fernandez welcome special guest Amy Travis to talk about AI use in payroll. The Certified Payroll Professional (CPP) explains how her passion for process improvement and innovation has led her to actively use AI tools in her daily workflows and how to navigate the challenges of adopting AI and engage its transformative potential in payroll operations.

Listen to the full episode here.

Have you recently written or read a great article or discovered another great resource we should know about? Write to us and we will include you in our next Global Payroll and Compliance News Update.