HCG: With 2026 Legal Reforms Ahead, Companies Must 'Rethink the Strategy' of Payroll and HR Management

AI × HR tech leader Human Consulting Group (HCG, CEO Park Jae-hyun) announced that, with tax and labor law changes scheduled for 2026, companies need to strategically reassess how they manage payroll and HR across the board.

 

Payroll today is rapidly expanding beyond simple wage calculation into a domain where tax, labor, and workforce management are interconnected. In 2026, changes such as a restructured tax regime for childbirth and childcare support, revisions to non-taxable allowances, and strengthened management of pay components are expected to raise the burden of determining taxable vs. non-taxable items and the accuracy of withholding. In the labor-law arena in particular, discussions around expanding the scope of the Labor Standards Act could broaden employer responsibility as well.

 

As a result, the need to re-examine HR operating standards tied directly to payroll—such as working-hour, allowance, and leave management—is growing. For companies with prime-contractor/subcontractor structures, the importance of managing labor-related risk is also rising.

 

In an environment where even small payroll errors or interpretation gaps can escalate into tax issues or labor disputes, payroll management is increasingly being viewed not as simple administration but as a core, compliance-based HR management domain.

 

In response, HCG emphasizes that companies should redesign payroll operations not through a short-term efficiency lens, but as a medium- and long-term operating strategy considering regulatory response and risk management. More companies are now viewing payroll outsourcing not as simple delegation but as a strategic option for operational stability and risk management.

 

In domains that demand both repetition and precision—payroll, year-end tax settlement, and the four major insurances—HCG's payroll outsourcing service ensures withholding and settlement accuracy through an operating framework that continuously reflects the latest tax and labor law updates, supported by dedicated professionals. HR teams can reduce the burden of payroll settlement and regulatory response and secure the bandwidth to focus on strategic HR initiatives such as workforce operations and policy improvement.

 

Hur Wook, Executive Vice President and Head of HCG's PO Business Division, said, "The 2026 legal reforms are a signal to reassess how payroll is managed across the board. Every company should now be rethinking the payroll and HR management structure that best fits its own environment."......(hereafter omitted.)