The world has never been this connected. Not only can people find out more about anything and everything, they also can hire in different countries. So growing demand for services that help businesses pay worldwide to any type of contractors is only natural. EasyStaff discusses what global payroll software is and what it does for business in this new article.
Global Payroll Software. Your Ultimate Tool For International Teams
12/01/2024
#ForBusiness
Global payroll software
What is global payroll software?
Why you need a global payroll solution
How A Global Payroll Software Works
How To Choose Your Global Payroll Solution
Your Average Payday with EasyStaff
The key element to the definition is global payroll. It is the whole spectrum of paying salaries abroad. To every cent paid as salary, there is also tax, compensations and bonuses to account for. Global payroll, therefore, takes into account multiple dimensions of traditional payroll and also backs business up with international compliance.
So international payroll software is a cloud-based or on-premises solution that helps businesses administer salaries, bonus and compensation across nations, while staying compliant across countries.
Global payroll software market today is immeasurable. As businesses vary in terms of size, budget and average payment size, so do multiple global payroll providers develop tools to meet every kind of demand.
Why bother, though? It may seem that whatever you can do in-house is by nature cheaper. The argument holds especially true for SMBs that are restricted by modest budgets and may not be able to invest into something fancy-sounding like global payroll.
So international payroll software is a cloud-based or on-premises solution that helps businesses administer salaries, bonus and compensation across nations, while staying compliant across countries.
Global payroll software market today is immeasurable. As businesses vary in terms of size, budget and average payment size, so do multiple global payroll providers develop tools to meet every kind of demand.
Why bother, though? It may seem that whatever you can do in-house is by nature cheaper. The argument holds especially true for SMBs that are restricted by modest budgets and may not be able to invest into something fancy-sounding like global payroll.
What is global payroll software?
What problems does global payroll solution solve exactly? Most commonly, it is challenges such as limited resources, escaping tax and legislation risks, expansion limits and decentralized data storage. Lets see how an international payroll software is able to address these hurdles.
No need to open local offices. When a company decides to hire someone abroad they are likely to consider launching a full scale office overseas. Reasons behind such a decision are clear enough: salaring becomes easier for locals. However, how many employees do you need to have over there so an office is worth it? The answer can be anything, and it is unlikely to be less than 10 people. And how many many employees do you need to have overseas to use a global payroll software? Even one will do.
Time and money saved for what’s important. Calculating and filing tax, requesting and processing closing documents, and so much more is tedious manual work. It’s complexity is further amplified by the fact that employees are scattered across the globe. Even if you do find a way around legislation, another great aspect is paying your employee. Actually sending money abroad is troublesome, to say the least. Banks are very likely to request additional documents to see where money is going. You may want to turn to online payment services like PayPal, but be aware of commissions. If your payment is not too much, you may be paying a hefty extra for every cent sent abroad.
Compliance is secured. One super power of multi-country payroll technology providers if that they know how to be compliant. With lawyers and accountants on their team, providers are able to foresee any hurdle that might come your way. Yes, your inhouse legal team may know a lot but can you consult them on literally any payment? With a payroll provider, your payments are taken care of. Another important aspect of compliance is proper worker classification. A reliable global payroll provider offers several employment options for part-time and full-time. It is able to guide you on worker classification and suggest suitable employment terms and payroll options.
Data is in one place. Not only do local data collection and storage regulations come into play here, but also the ease with which you may or may not be able to retrieve data, once needed. For tax purposes at home or abroad, your business is likely to be scrutinized by authorities on the matter of tax compliance. Global payroll software, as your single-window solution to all payment matters, is a convenient access point to people and salary data.
Satisfied employees. In the end, people work to earn and to make a living. When your employees give their very best and invest personally in your company’s projects, they expect payment to come in on time and in full. Sadly, with traditional banking and money transferring services and their commissions for international transfers, a regular and predictable salary schedule seems out of reach. But with a global payroll software provider, you can count on timely transfers, both fast and compliant, to any place in the world.
No need to open local offices. When a company decides to hire someone abroad they are likely to consider launching a full scale office overseas. Reasons behind such a decision are clear enough: salaring becomes easier for locals. However, how many employees do you need to have over there so an office is worth it? The answer can be anything, and it is unlikely to be less than 10 people. And how many many employees do you need to have overseas to use a global payroll software? Even one will do.
Time and money saved for what’s important. Calculating and filing tax, requesting and processing closing documents, and so much more is tedious manual work. It’s complexity is further amplified by the fact that employees are scattered across the globe. Even if you do find a way around legislation, another great aspect is paying your employee. Actually sending money abroad is troublesome, to say the least. Banks are very likely to request additional documents to see where money is going. You may want to turn to online payment services like PayPal, but be aware of commissions. If your payment is not too much, you may be paying a hefty extra for every cent sent abroad.
Compliance is secured. One super power of multi-country payroll technology providers if that they know how to be compliant. With lawyers and accountants on their team, providers are able to foresee any hurdle that might come your way. Yes, your inhouse legal team may know a lot but can you consult them on literally any payment? With a payroll provider, your payments are taken care of. Another important aspect of compliance is proper worker classification. A reliable global payroll provider offers several employment options for part-time and full-time. It is able to guide you on worker classification and suggest suitable employment terms and payroll options.
Data is in one place. Not only do local data collection and storage regulations come into play here, but also the ease with which you may or may not be able to retrieve data, once needed. For tax purposes at home or abroad, your business is likely to be scrutinized by authorities on the matter of tax compliance. Global payroll software, as your single-window solution to all payment matters, is a convenient access point to people and salary data.
Satisfied employees. In the end, people work to earn and to make a living. When your employees give their very best and invest personally in your company’s projects, they expect payment to come in on time and in full. Sadly, with traditional banking and money transferring services and their commissions for international transfers, a regular and predictable salary schedule seems out of reach. But with a global payroll software provider, you can count on timely transfers, both fast and compliant, to any place in the world.
Why you need a global payroll solution
Multiple options are available today for companies that wish to grow internationally or to save on payroll. The choice depends on pricing, locations covered and minimum requirements to meet. Three major models are Employer Of Record, Professional Employer Organization and Contractor/Freelancer Management System.
Employer of Record, or EOR, is a popular solution that helps businesses avoid opening an entity in the overseas location. EORs let companies expand globally and hire international talent easily, eliminating the need to set up separate payroll and compliance structures in each country. The EOR becomes the legal employer, managing payroll and assisting with hiring and related paperwork.
Outsourcing HR to a Professional Employer Organization, or PEO, avoids in-house management of payroll, benefits, and compliance. However, using a PEO requires establishing a legal entity in the target location. The PEO then becomes a co-employer, sharing responsibilities, unlike other outsourcing models.
EOR and PEO imply a long term presence in a country where you buy these services to represent your business. But SMBs turn to overseas staff not only for long term engagement, but also for one-off projects where workforce needs short lasting expansion. Would EOR or PEO do then? Chances are your company is looking for a different type of software known as CMS or FMS.
Cloud-based Contractor Management Systems (CMS), also known as Freelancer Management Systems (FMS), offer a centralized solution for managing independent contractors. These systems streamline various aspects of contractor relationships, including onboarding, payment scheduling, and documentation management. This centralized approach enhances transparency and traceability of payments, crucial for maintaining compliance across different countries.
The primary benefit of an FMS is the simplification of administrative tasks associated with managing remote contractor teams. A robust system provides comprehensive support throughout the entire lifecycle of a contractor relationship, from initial sourcing and onboarding to performance monitoring and compliant invoicing. When properly implemented and configured, an FMS can significantly reduce manual workload, automating many processes with minimal effort.
Employer of Record, or EOR, is a popular solution that helps businesses avoid opening an entity in the overseas location. EORs let companies expand globally and hire international talent easily, eliminating the need to set up separate payroll and compliance structures in each country. The EOR becomes the legal employer, managing payroll and assisting with hiring and related paperwork.
Outsourcing HR to a Professional Employer Organization, or PEO, avoids in-house management of payroll, benefits, and compliance. However, using a PEO requires establishing a legal entity in the target location. The PEO then becomes a co-employer, sharing responsibilities, unlike other outsourcing models.
EOR and PEO imply a long term presence in a country where you buy these services to represent your business. But SMBs turn to overseas staff not only for long term engagement, but also for one-off projects where workforce needs short lasting expansion. Would EOR or PEO do then? Chances are your company is looking for a different type of software known as CMS or FMS.
Cloud-based Contractor Management Systems (CMS), also known as Freelancer Management Systems (FMS), offer a centralized solution for managing independent contractors. These systems streamline various aspects of contractor relationships, including onboarding, payment scheduling, and documentation management. This centralized approach enhances transparency and traceability of payments, crucial for maintaining compliance across different countries.
The primary benefit of an FMS is the simplification of administrative tasks associated with managing remote contractor teams. A robust system provides comprehensive support throughout the entire lifecycle of a contractor relationship, from initial sourcing and onboarding to performance monitoring and compliant invoicing. When properly implemented and configured, an FMS can significantly reduce manual workload, automating many processes with minimal effort.
How A Global Payroll Software Works
Global payroll solution is chosen in order to solve problems that may come up as you explore different overseas markets. So selecting an appropriate provider that caters to your needs and grows with you is key to hassle-free international growth.
First and foremost, you want to check compliance of your potential provider. Depending on how the provider operates, they may either be an intermediary between you and workers or they may have a vast network of branches. Either way, they need to be able to explain how your payment operations will be safe and secure with them. A proven track record and verifiable success stories are evidence to their reputation.
Next, you should be looking for a crystal-clear and user-friendly UI. Global payroll software is designed to be easy to operate, no matter how many jurisdictions you may have to pay to. Besides frontend, backend should also be in line with your expectations. Does it charge extra for every transaction or to transactions to certain places? Does the provider have adequate customer support?
Another dimension of a good UI is what the employee sees and how they are given money. Are they able to withdraw funds in the way that is convenient for them? Does the contractor get enough documentation to report on their income with you?
Because going global is done with an intent of scaling, you need to make sure that the provider you move forward with is able to scale with you. On the one hand, there is operational capacity to take into account. In other words, can the provider pay as much and as often as you need? On the other hand, there is pricing to be considered. Chances are, the more your turnover is with a provider, the less you pay in commissions. But you want to check that beforehand.
Last but not least, it is important to assess data management and reporting. Data management involves how data is collected and where it is stored. And reporting means the form you get your reports in. Data retrieved should be represented in both location-specific format and general format.
The rule of thumb is, your global payroll solution should be able to provide every closing document that a bank or a tax authority may require. The rule applies to the employee as well. A global payroll solution technology should also take care of recipients. If your workers feel unsafe working with you, building a sound long-term team is impossible.
First and foremost, you want to check compliance of your potential provider. Depending on how the provider operates, they may either be an intermediary between you and workers or they may have a vast network of branches. Either way, they need to be able to explain how your payment operations will be safe and secure with them. A proven track record and verifiable success stories are evidence to their reputation.
Next, you should be looking for a crystal-clear and user-friendly UI. Global payroll software is designed to be easy to operate, no matter how many jurisdictions you may have to pay to. Besides frontend, backend should also be in line with your expectations. Does it charge extra for every transaction or to transactions to certain places? Does the provider have adequate customer support?
Another dimension of a good UI is what the employee sees and how they are given money. Are they able to withdraw funds in the way that is convenient for them? Does the contractor get enough documentation to report on their income with you?
Because going global is done with an intent of scaling, you need to make sure that the provider you move forward with is able to scale with you. On the one hand, there is operational capacity to take into account. In other words, can the provider pay as much and as often as you need? On the other hand, there is pricing to be considered. Chances are, the more your turnover is with a provider, the less you pay in commissions. But you want to check that beforehand.
Last but not least, it is important to assess data management and reporting. Data management involves how data is collected and where it is stored. And reporting means the form you get your reports in. Data retrieved should be represented in both location-specific format and general format.
The rule of thumb is, your global payroll solution should be able to provide every closing document that a bank or a tax authority may require. The rule applies to the employee as well. A global payroll solution technology should also take care of recipients. If your workers feel unsafe working with you, building a sound long-term team is impossible.
How To Choose Your Global Payroll Solution
EasyStaff is a contractor management platform that helps businesses automate freelancer, contractor and employee management through a single B2B contract. The platform caters to businesses of all caliber thanks to its dynamic commission rates. EasyStaff only requires a bare minimum of documents to verify the company, and businesses can get to business (no pun intended) within just a few hours.
Suppose you joined EasyStaff for fast and secure payments. This is what your average payday is going to be like.
You have just paid your freelancer via a B2B contract. Remember the contractor you signed earlier? This is the service agreement that lists you as a client and EasyStaff as your contractor. This means you work with a European legal entity, which is why risks are eliminated on your end.
Suppose you joined EasyStaff for fast and secure payments. This is what your average payday is going to be like.
- You’ve already filled out your account in My companies and signed the contract that was sent your way via email.
- Now on time to invite your freelancer. Go to Invite in Freelancers and follow simple steps.
- Next, you need to add money to your personal account. It is easy to top it up with a bank card, cryptocurrency or a bank transfer.
- Go to Tasks and create a task for your freelancer. This will be the grounds for payment, so make sure the task description is accurate.
- What if the payout currency differs from the top-up currency? It is OK. You can convert money in Currency Exchange.
- You’re all set to pay! Accept the completed tasks that the freelancer sends your way and pay them.
- Are you working with a regular worker? It is fine. You can lay them once a month with creating a single task every month.
- Download your closing documents in Operations.
You have just paid your freelancer via a B2B contract. Remember the contractor you signed earlier? This is the service agreement that lists you as a client and EasyStaff as your contractor. This means you work with a European legal entity, which is why risks are eliminated on your end.
Your Average Payday with EasyStaff
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