Beyond SAF-T: why payroll may be the next frontier of tax digitalisation

Across Europe, tax authorities are increasingly shifting from document-based reviews to data-driven compliance. In Romania, the introduction of SAF-T, e-invoicing, and e-transport has significantly transformed the relationship between taxpayers and the tax administration, creating a framework built on structured data, automated reconciliations, and greater transparency.

While Romania has not announced plans to introduce a dedicated payroll reporting requirement similar to SAF-T, international trends suggest that payroll data is moving higher on tax authorities’ agendas. The issue is no longer whether payroll will be subject to increased digital scrutiny but whether organisations are prepared for that possibility.

Much of the discussion around tax digitalisation has centred on the OECD’s Standard Audit File for Tax (SAF-T), which enables authorities to access accounting and tax data in a standardised electronic format. Less widely known is the OECD’s Standard Audit File for Payroll (SAF-P), a reference model designed to standardise payroll-related information.

The concept is straightforward. If SAF-T provides visibility into accounting records, a payroll equivalent would focus on employee remuneration, wage taxes, social security contributions, benefits, payroll adjustments, and related employment data.

Yet payroll presents a far more complex challenge. Unlike financial reporting, payroll sits at the intersection of tax, employment law, social security, mobility, compensation, and HR operations. The result is a highly interconnected data environment where inconsistencies can quickly translate into compliance risks.

In essence, SAF-T asks a company to explain its accounting data. A future payroll reporting framework would require organisations to explain their people data with the same level of transparency and consistency.

Although the OECD’s SAF-P model has not seen the same widespread adoption as SAF-T, several jurisdictions have already implemented digital payroll reporting systems that pursue similar objectives. Australia operates Single Touch Payroll, the UK uses Real Time Information (RTI) for PAYE reporting, and New Zealand applies Payday Filing requirements.

Romania already possesses many of the components that could support a similar evolution. Form 112 captures detailed information on wage taxes and social security contributions, REGES records key employment data, while broader digital reporting initiatives continue to expand the government’s capacity to connect information across multiple sources.

For many organisations, the greatest payroll risk does not stem from calculation errors. It arises from fragmented systems, inconsistent data, and disconnected processes.

Payroll information frequently resides in multiple platforms: HR systems, time and attendance applications, payroll software, and financial reporting systems. Each system may perform its function effectively, yet discrepancies often emerge when data is compared across the wider ecosystem.

The SAF-T experience offers an important lesson. Differences that may have been tolerated for years can quickly become visible when data is extracted, standardised, and analysed at scale.

These are not merely technical concerns. They represent potential tax exposures, governance weaknesses, and operational risks that may attract greater scrutiny as tax administrations enhance their analytical capabilities.

The discussion surrounding payroll digitalisation is ultimately a discussion about governance.

As authorities gain access to larger volumes of structured data, organisations will need clear accountability over payroll processes, data ownership, and decision-making. Companies should be able to explain not only how payroll figures are calculated but also how tax treatments are determined, validated, and documented.

This requires closer collaboration between tax, finance, payroll, and HR functions.

For CFOs, payroll should be viewed as a core financial risk area. Employment costs are among the largest expenses for most organisations, while associated data directly affects financial reporting, budgeting, cash-flow management, and internal controls.

For tax leaders, payroll digitalisation highlights a broader shift in compliance. Correct tax interpretations remain essential, but they must also be reflected consistently across systems, coding structures, supporting documentation, and recurring reporting processes.

For HR leaders, employee data is increasingly becoming compliance data. Benefit programmes, flexible working arrangements, and international mobility policies can all carry significant tax and social security implications. When data quality and governance fall short, compliance risks may follow.

Romania may never introduce a reporting obligation formally called SAF-P. Instead, payroll transparency requirements may evolve through enhancements to existing reporting channels and greater integration of government data systems.

The most important lesson from SAF-T is that preparation should begin well before any new reporting requirement is announced. Organisations that invest today in data quality, governance frameworks, and cross-functional collaboration will be better positioned for whatever comes next.

In a tax environment increasingly shaped by data, transparency, and real-time oversight, payroll can no longer be viewed as a purely operational function. It is becoming a strategic compliance asset, and one that deserves a place on the agenda of every CFO, tax leader, and HR executive.