Multi-country payroll: what is it for and does your startup need it?

Building teams across the world is easier said than done, it seems. While connecting with that dream manager or designer is easy, paying them compliantly may be quite a challenge for a small or even medium business. And if we are talking full-scale in-house teams, then payroll management is an integer part that needs to be in order from the start. Can multi-country payroll software help your business? Read below to find out! 

Breaking down the Concept 

The term spells huge. What is between the lines though? 

• Payroll software (not always for international business operations) is a software that acts as a payroll manager. It tracks hours worked and days off, factors in supplemental payments and delivers the exact payroll figures to be paid out, both before and after tax. 
• Multi-country payroll is more sophisticated than domestic (essentially, single-country) payroll in a sense that (a) it covers at least two countries, and (b) it is built to achieve transparency across jurisdictions. Any payroll software is built to achieve clarity of course, but global payroll software is designed to retrieve any data, any time, for any place. 
• Therefore, a multi-country payroll software is a digital solution that tracks, manages and analyzes data from multiple sources and transforms it into specific reports that the user company can provide to local tax authorities, thus ensuring compliance. 

What’s under the hood? 

Any global payroll software, essentially, has a similar structure. 

1. Payroll Engine. The core part is calculation algorithms that factor in salaries, deductions, bonuses and tax based on local regulations of a given country. 
2. Legal Framework. The system performs calculations based on labor laws and tax calculation rules relevant for the country. Basically, these rules are supplemented by the developer. For example, in EasyStaff Payroll our team of in-house lawyers and tax managers monitors new regulations introduced by Europe to ensure that the platform remains a compliant business partner for its users. 
3. Integration with HRM. Payroll processing must be supplied data on working hours, KPIs, leaves, etc. So integrating your payroll management system is crucial for effective payroll processing. EasyStaff Payroll has an API to integrate it into your HR software. 
4. Reporting. The end goal of any multi-country payroll software is to provide its users with relevant and country-specific closing documents to back up any financial operation performed with the employee. So a quality reporting tool is another core feature of payroll software. 
5. Localization capabilities. From multilingual interfaces to calendars that account for different national holidays, the payroll software you select needs to be adapted to all locations where the business operates.
6. Scalability. The software needs to be able to stretch along with your business growth. Normally, any cloud-based system has this potential to accommodate more employees, contractors and countries. In EasyStaff Payroll, the amount of employees a user onboards can be anything, thanks to automation. Switching from one payroll system to another in the middle of things can be problematic and time-consuming for a business, thus making it play defense rather than ride the momentum.  

Challenges of Multi-Country Payroll 

In-house payroll, given different types of work contracts, supplemental pay policies and applicable taxes, International payroll software is not just a fun thing to have around. It is designed to address very real challenges that businesses encounter going global. 

• Different jurisdictions require different bookkeeping. To build a comprehensive report of all revenue and spending, a company will need to first manually collect data from all of its offices, then make it uniform and only then data will be ready for analysis and reporting. A multi-country payroll software helps eliminate this step and keeps data in order for online retrieval. 
• Costly time and labor resource. People resources that go into processing payroll across locations can be costly. And even if you sit a whole payroll team at a desk, the risk of error doesn’t decrease. And the potential penalties or fines don’t make things any better. In contrast, a software takes a significant amount of manual and operational work away from your team, so expensive and creative human energy can be directed towards meaningful core business tasks. 
• Localisation. Along with compliance and reporting models, two other important aspects stand out: language and currency volatility. Are you sure that what is called ‘invoice’ in your home base means exactly that abroad? Or if you have a team in Chile, you are sure to know how unstable the currency rate is there. A dedicated payroll software helps overcome the language barrier and tie any local currency to the currency in which the business operates, while maintaining accurate reporting data. 

Best Multi-Country Payroll Processing Software 

As a leading payroll management software, we are on the lookout for the truly performing payroll solutions out there. Here’s our view on the software providers that do a great job at helping businesses manage teams over the world. 

Startup 

#1 – EasyStaff Payroll

Although we have been in the market for about 6 years already, we are still a startup. We act, think and work like one. That’s why we feel for all those aspiring and energetic teams that are now finding their way in the global market. Joining the platform only takes 1 day. To get verified, a bare minimum of documents is required. You can set up your payroll operations within minutes. There is no subscription fee. The minimum payment is only $10, so there is no need to wait for a hefty sum to accumulate. Any amounts can be sent to meet your business goals. 

#2 – Teamed

The service offers some very lucrative fees of £39 per month for onboarding up to 150 contractors. As an EOR, Teamed provides quality support and effective compliance for businesses that use the platform for their international talent pool. 

#3 – RemotePass

The software has varying plans to match any business and any HR situation from local payroll of only $15/month to the EOR solution starting at $349/month. 

Mid-Market and Enterprise 

#1 – Rippling

The platform is a giant that can basically cover all HR-related business needs a company might have. Its coverage of 185+ countries is one of the largest on the market. While there is no one-size-fits-all subscription model like in EasyStaff with its dynamic plans, Rippling is a serious game-changer for businesses that have far outgrown its startup stage.  

#2 – Remote 

Remote capitalizes on its clear pricing. If you are looking for a complex solution that remains simple from headspace and expense standpoint, then Remote is the choice. As an enterprise-level software, the fee starts at $600 per employee per month, 

#3 – EasyStaff Payroll

Yes, there is no mistake here. EasyStaff Payroll is a versatile solution that is scalable and adaptable to any business needs and locations. Whether it is a modest team of 5 people or a 100+ remote team, EasyStaff has you covered. The dynamic plans we offer match your budget, and the more you have in turnover, the less you spend: the commission goes as low as 4% with a monthly turnover of €50,000.  

Best Practice for Implementing Payroll Software 

Running a quick survey with the decision-maker is a safe way to select the right payroll software. Based on our experience with our clients, we recommend considering these questions: 

Your unique payroll challenge 

Does it support your specific payroll scenarios, such as multiple pay frequencies, complex bonus structures, or unique employee classifications? The system must be able to deliver to your needs here and now. ‘Coming soon’ features may not be worth waiting for, given that you need the functionality now. The cost at which the payroll software stands also matters.

Scalability 

Is their support team equipped to handle your growing needs? Do they offer dedicated account management? It is OK to ask to see more of their cases and success stories to understand the load the provider has worked with (and how successful it was for the client business). 

Reliability 

What security measures are in place to protect sensitive payroll data? Are they compliant with international data protection standards? Working globally means being exposed to higher compliance demands at home and overseas. So the payroll solution must be able to explain how data is handled and guarantee that it is shared with any third party. 

Conclusion 

• A multi-country payroll solution is an effective measure to streamline and optimize payroll operations in a company that hires globally. 
• A well-chosen solution that addresses your unique business needs helps save money and your team’s time for core business tasks by taking away the routine and manual labor. It also eliminates errors, thus reducing risks of poor tax filing or inaccurate paperwork for your business. 
• EasyStaff Payroll is a reliable global payroll solution for startups and larger businesses that combines fast onboarding, swift operations and budget-friendly commission. As a Lithuanian company acting as a B2B partner, it only needs a B2B contract with your company to administer payroll to your inhouse team and contractors worldwide.