International payroll is a complex system of payroll management that stretches beyond the home country of a business. Operations associated with international payroll management somewhat resemble traditional payroll on-shore, but entail more complex and high-stakes processes such as international tax management and employee classification. Making the right choice when selecting an international payroll solution is critical for stable and secure international business growth. In this new article
EasyStaff discusses what payroll solutions are in the market and how to choose the one that suits your needs best.
Global payroll solutions are software designed to centralize all things payroll. The software is cloud-based, and it plays the role of a unified access point for all payroll management processes. The team behind the software possesses necessary expertise to handle international payroll across various jurisdictions, relying on partner networks to deliver paychecks and ensure compliance for their clients. In other words, a global payroll solution provider takes risks and challenges off of your shoulders and serves as your agent in international payroll management.
International Payroll Solution. What It Is & How You Choose It
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International Payroll Solution. What It Is & How You Choose It
Benefits of Using International Payroll Solution
Types of Global Payroll Solutions
How Global Payroll Solutions Work. EasyStaff Explained
How to Choose The Right Payroll Solution
Global Payroll Software FAQ
Swift and secure payments overseas with EasyStaff
Saves time. The super power of a payroll software is that it automates operations. Complex and risk-generating operations are broken down into automated steps that significantly cut the amount of money, time and effort that your team needs to invest into the process.
Reduces costs. Behind every payroll software, there is a team of lawyers, accountants and managers that know how to navigate the international payroll. They will help you manage any form of workforce with any amount of payment, from a single independent contractor to a full-fledged remote team. Having the same team of professionals in-house may come at a considerable cost, especially when you are only testing waters internationally. So delegating international payment management, from selecting the right bank to correct tax calculation, helps you free up time for core business operations and let professionals handle your payroll.
Minimizes errors. To err is human, and so when you decide to load your in-house accountants with cumbersome cross-border payments, you are likely to encounter a couple of mistakes here and there. In contrast, global payroll providers are exposed to hundreds of operations daily, from all over the world, and their expertise can be trusted and put in practice for your payroll management. In other words, international payroll providers have built secure transactional paths to transmit money to your teams across the world.
Benefits of Using International Payroll Solution
Pay remote teams and freelancers worldwide in any currency
Depending on the level of control and amounts to be sent, businesses can select an appropriate solution for their needs out of multiple options found in the market. Traditionally, there are three major types of payroll management solutions: in-house management, global payroll software and global payroll aggregator and EOR.
In-house payroll management can be a powerful solution for companies that have strong international presence and enough resources to oversee highly specific local payroll processes and regulations. The undoubted advantage of the approach is that the business has full control and maximum data visibility in its payroll.
Payroll software is a cloud-based tool to manage your global payroll through a single access point. It simplifies payroll management by basically bringing it all down to an online personal account where you feed it money and recipients' data. The reason payroll software is a popular option, especially among younger businesses, is that it doesn’t charge as much as offline payroll partners or payroll aggregators while still providing necessary security and compliance.
Next, payroll aggregators are intermediaries that collaborate with numerous local providers to expand its geographical reach, meaning payroll processing in each country is typically handled separately by a distinct entity. However, this is all managed under a single, consolidated service agreement issued by the main aggregator. This approach ensures extensive country coverage delivering to most of your business needs.
Lastly, there are giants of payroll management that stand the closest to in-house operations. Employer of Record, or EOR, is a partner party that hires and pays for your business overseas. It assumes the role of a full-scale business partner for your business responsible for payroll management. EORs either establish connections with local agencies or take time to open their own entity in the country of interest.
Figuring out the right solution for your business is not easy, although it is the kind of decision that directly affects how fast and how smoothly your business grows. Switching from one solution to another in the middle of things may be troublesome, having a direct effect on your business efficiency.
Types of Global Payroll Solutions
Global payroll management is what EasyStaff has been doing for the past 6 years. With over € 90 million worth of transactions, our expertise is a powerful foundation and a serious competitive edge in the market of payroll solutions. Let’s break what EasyStaff does into simple steps that allow our clients to work internationally hussle-free.
EasyStaff is a global payroll solution that acts as a B2B partner for a business. On the one hand, the platform is a B2B partner managed through a single B2B contract. Documentation, invoices and contracts are signed by the client and EasyStaff. On the other hand, EasyStaff acts as a client for freelancers, contractors and employees that are paid through EasyStaff. On their end, they receive documents issued and signed by EasyStaff. So, on paper each party interacts with an official European legal entity.
Clients top up their balance in personal accounts on the platform. The money will be later used to pay the employee, the contractor or the freelancer. A service agreement needs to be signed by the client. The document serves as the framework for the partnership between the client and EasyStaff. Later, once a worker’s job is done and the client pays them, an invoice and closing documents are provided as well. These papers can be submitted to local tax authorities.
How Global Payroll Solutions Work. EasyStaff Explained
Many factors come into play as you set out to choose the best option that meets your business needs. When browsing what is on the market, ask yourself these questions to find your most appropriate solution.
What is the scope of payments you expect the solution to manage? Another way of asking this question is, how much money do you need paid and how many transfers needs to be made monthly? Payroll solutions charge differently depending on how much money is in processing. Furthermore, how often and how regularly payments are expected to be made also varies from provider to provider. You need to make sure that your payments can be sent on schedule or spontaneously or both.
What is the service’s expertise? Behind any provider or software, there is a team that runs it, ensures compliance and security. Finding out more about the founder (s) and top management team is important, as it provides you with the story of the service. Along with personal stories of the founding team, carefully check the regions it works with and if there are any commissions charged extra for certain locations.
How easy/difficult is it to implement the solution? A difficult and problematic setup may be a serious hurdle on your way to seamless payroll management. Before you sign a service agreement, check if the solution integrates successfully with your HRM systems or if you need to make any significant changes in how your business operates. Basically, an intuitive UI is the best argument in favor of a given solution.
How is their customer support? Prioritize vendors who provide adaptable and informed assistance via diverse avenues for communication like phone, email, and live chat. Your vendor’s accessibility and turnaround time are critical in case you encounter a problem or an unseen payment request. A supplier possessing a specialized support staff, capable of promptly addressing any compensation-related concerns, is key to seamless payroll operations.
How to Choose The Right Payroll Solution
Do I need a payroll solution if I work with freelancers and independent contractors?
For short-term one-off projects and partnerships, you may stick to regular payment options, such as PayPal. However, the key disadvantage of such transfers is that you as a business do not receive any closing documents, and the operation will not be equipped enough with closing documents to be transparent for your local tax authorities.
Can I use a global payroll software along with other payment tools?
Yes. You don’t need to abandon your existing payment solutions in favor of a single software. Although if you want to bring in more uniformity and alignment, outsourcing the entire scope of work to a single tool is preferable.
What is a global payroll software responsible for?
Its core goal is to provide compliance for your international payments to overseas freelancers, contractors, and employees. That’s why when selecting a provider, the fundamental criteria is how the software ensures compliance and what documents you will be given to minimize risks.
EasyStaff is a global freelancer management platform that supports your company at every stage of growth, from paying first international contractors to managing remote teams worldwide. Enjoy seamless cross-border payment processing and compliant document management with EasyStaff.
Swift and secure payments overseas with EasyStaff
Global Payroll Software FAQ