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What is a Shadow Payroll?

In order to remain compliant with tax, social security and other legislation in each country around the world, it is important for a business to understand how much income their employees have receive

Updated over 2 weeks ago

In order to remain compliant with tax, social security and other legislation in each country around the world, it is important for a business to understand how much income their employees have received through the year. Shadow payroll is a fake payroll that pretends that the overseas employees of an organisation, never left home, but still received all the payments from an assignment.

In AssignmentPro, when using Total Comp methodology, the system automatically duplicates any primary payroll payments as shadow payments. These shadow payments can then be output and used in Shadow Payroll Reports.

Things to note:

  • Shadow transactions are not created under Allowance methodology

  • Payments made to secondary payroll do not have a shadow payment produced

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