Impact of EFD social on Brazil payroll outsourcing

Brazil is considered as one of the fastest growing payroll outsourcing country in Latin America due to frequently changing payroll regulations and compliances. The implementation of EFD Social in January 2014 is expected to further impact the payroll outsourcing. The article focusses on the current payroll outsourcing strategies adopted by some of the large sized companies in Brazil. The key parameters which buyers must consider on deciding to outsource payroll from in-house is also highlighted. The current maturity of the Brazil payroll market is analyzed by buyers’ adoption rate across different industry sectors. The supplier maturity is also growing leaps and bounds due to greater consolidation among local and regional payroll vendors in Brazil to manage end to end payroll outsourcing. Lastly, the article discusses about the key risks and opportunities involved in outsourcing in Brazil. Due to the extremely complex and changing regulatory landscape in Brazil, payroll administrators are expected to increase their payroll outsourcing.