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Global payroll is quite inefficient and complicated, which causes big and unnecessary expenses to big companies and corporations. Blockchain could address this issue.
A blockchain company Horuspay is trying to address the current issues of global payroll. There are four problems in the industry that the new payroll system seeks to solve, according to the project’s white paper.
Issues of the current global payroll system
Low-quality vendors with high fees are common in the industry. The company’s team claims in the white paper that the vast majority of organizations don’t have contracts with a worldwide payroll provider but instead use a global payroll aggregator. Such aggregators come with a long list of well-known flaws.
Those intermediaries — to apply the highest possible premium — are incentivized to employ the lowest bidder in each country, regardless of the service quality. Some aggregators also reportedly levy a margin of 40 percent to the corporation, and the white paper claims that Horuspay is 50-80 percent cheaper.
The communication of such systems is also quite slow and error-prone. The aforementioned aggregators relay questions and requests from the entity to the local payroll vendors. Such an unnecessarily complicated communication system leads to missed messages, requests and delays. But more importantly, it can also cause translation and data entry errors.
The white paper mentions that sometimes organizations are asked by the aggregators to use customer relationship management (CRM) shared inboxes, but these aren’t constantly monitored, causing delays.
Slow and expensive international transactions are another significant hurdle of this industry. Wire transfers generally take one to five days and can cost up to $65 per transfer, which is incredibly inefficient.
The last — but not least — issue is security. Many payroll providers have been hacked. In 2016, it was reported that employee tax and salary information had been stolen from a dozen companies that use a leading global provider of cloud-based Human Capital Management (HCM) solutions.
According to the project’s white paper, “by using blockchain technology, global entities can complete faster transactions, reduce costs and experience better security. By creating uneditable, transparent records and vendor reviews, blockchain makes it easy for global entities to research new payroll vendors.”
Horuspay platform promises organizations to bring their payroll vendors onboard directly, which would cut costs drastically and make communication easier.
When using only one payroll portal, documentation is much easier. According to the white paper, only one employee can manage up to eight countries, “and the HCM integration can save up to 16 hours per week of data entry per global payroll specialist.” This integration could easily add up to significant savings in large corporations.
Also, transaction costs and speeds are improved by using eosCASH (an EOS token known as Horus dollar before the rebranding) for payments. In the future, the company promises to convert cryptocurrency into fiat currency quickly.
One ecosystem, two tokens
Horuspay uses two tokens to run its ecosystem. The first one is the HORUS token. Organizations will need to have one HORUS staked per every employee on their payroll. The total supply of this token is 1,200 million, of which 900 million have been airdropped to EOS holders, and Horuspay has kept 300 million.
eosCASH — the tokens used for payroll payments — are generated by a staking mechanism. For over 80 years — until there will be 1,200 million — each stacked HORUS token will yield its 0.1 percent in eosCASH to its owner.