Payroll moves beyond an administrative function

Payroll has long been viewed as a back-office responsibility, but increasing compliance demands are pushing it closer to the center of business operations.

According to Matan Bar, Xero U.S. CEO, a provider of accounting and business management software for small businesses, payroll now sits at the intersection of regulatory compliance, workforce management, and financial planning. As employers face expanding wage-and-hour requirements, payroll tax obligations, leave mandates, and reporting responsibilities, the risks associated with payroll administration continue to increase.

Bar, who spent much of his career working in financial technology, payments, and small-business financial operations, including leadership roles with PayPal’s global peer-to-peer payments business, said payroll exemplifies an area where extensive regulation and jurisdictional differences can create significant burdens for employers, particularly small businesses that may lack dedicated compliance resources.

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