Employer alignment submission, or EAS, refers to the process of submitting employees payroll data to a PSP or payment distribution platform.
This data may include:
- Employee details
- Gross & net pay
- Global benefits
- Bonuses and commissions
- Leave balances
- Salary adjustments
- Pension and retirement contributions
EAS frequency will depend on the platform or payroll provider’s requirements. This can include factors like frequency of pay and payment methods.
How does EAS work?
- The employer collects the data for the relevant pay period
- The data is submitted to the PSP or payroll provider in the necessary format
- The provider processes the data and calculates the payments, taxes, and deductions
- The provider transfers the funds to the employees’ bank accounts
- The employer receives a report on the payroll data from the provider
EAS around the world
The EAS process may also vary depending on the country. Factors like tax laws, local payroll regulations, and data privacy requirements can all affect the submission process.
Here are some examples:
- In Singapore, employers need to submit EAS in compliance with the Central Provident Fund System, which requires organizations to put money into things like retirement savings and healthcare and housing benefits.
- In Australia, employers need to submit EAS in compliance with the Privacy Act 1988 to protect employee data, as well as the Australian taxation office.
- In the US, employers must comply with state and local payroll tax laws, as well as the Electronic Federal Tax Payment System, which requires payment of federal taxes.
- In the UK, employers need to report payroll information to HM Revenue and Customs before or on the date of payments.
Managing EAS with a global workforce
The right third-party provider can help these organizations in:
- Standardizing the payroll data to be used across different countries.
- Centralizing payroll management to keep the global payroll processing consistent and minimizing the need for multiple EAS submissions.
- Monitoring compliance so that the EAS process adheres to regulations and laws in each country of operation.