Global payroll providers add new capabilities all the time. They can manage employee and contractor compliance across 150+ countries through a single platform. Look for a provider that offers contractor and employee management and employer-of-record services. This combination of features saves businesses a lot of money and hassle by consolidating multiple vendors into one tool.
Multi-Currency Payroll
Companies must ensure that employees are paid accurately in local currencies as they expand overseas. This can be not easy to manage manually, especially if your company has workers in multiple countries. International payroll software streamlines the process by reducing the number of manual calculations. This can also save your business money on fees for international money transfers. For example, a company that pays employees in the UK and Ireland may have to pay a fee of about $25 for each SWIFT transfer.
A multi-currency payroll can reduce this cost by providing a single, secure portal for managing all global payments. This feature also makes it easier to navigate local laws, which can vary from country to country. For example, some countries require employers to pay their employees in a particular currency or provide certain employee benefits such as 13th-month salaries or dining stipends.
International payroll services can simplify this process by handling payment and tax calculations for you and ensuring compliance with local law. An excellent international payroll provider will use a centralized system that provides detailed reports and analysis of each paycheck. This data can help you better understand how each pay period impacts your bottom line and make decisions that will improve performance.
A payroll service provider can also handle extra compensation such as bonuses, work-from-home stipends, and other employee perks.
Automated Payroll Processing
A significant benefit of international payroll software is that it automates many tedious and time-consuming tasks associated with global pay calculations. This is especially important for companies with many employees or regularly changing salary amounts, such as those in sales or commission-based roles. Additionally, newer systems can better keep up with changing compliance regulations and make it easier for employers to file taxes, with some even offering this service for an additional fee. This reduces the scope for errors and ensures that businesses are always up to date with their tax obligations.
The best global payroll services also include contractor payment solutions, an excellent option for companies that wish to hire workers abroad but prefer their status as contractors rather than full-time employees. Using this type of solution can help companies avoid the complexities of hiring international employees and ensure they fully comply with local laws and regulations.
Finally, looking for an international payroll solution with employee self-service features is a good idea. This allows employees to log in and view their digital pay stubs and year-end tax forms anytime, which helps build trust and gives them a sense of control over their paychecks. This is something that most companies should offer their employees, but not all do.
Compliance
An excellent international payroll company will have advanced knowledge of the laws and regulations of all the countries it services. This will allow it to help businesses avoid legal penalties that could result from incorrect payroll processing. This includes knowing local tax rules and withholding procedures, as well as how to set up employee benefits programs.
Some global payroll providers can also offer consulting and advisory services for employers who need help with complicated matters like labor law compliance. Many of these vendors can also provide contractor payment services for workers who prefer to be considered independent contractors instead of full-time employees. They will be able to pay them in their preferred currency and handle all the necessary paperwork while ensuring they fully comply with all local laws.
In addition to these core features, some vendors will also offer a range of additional tools for tracking employee hours and calculating taxes and deductions. This can make the process more efficient for employers and their remote employees, leading to better productivity and a more engaged workforce.
Reporting
Global payroll is a complex and time-consuming process. Many international payroll services offer reporting that helps employers stay on top of tax and compliance issues, ensuring they comply with local labor laws. This is an essential feature in any international payroll tool, as it can save both employer and employee a lot of time and headaches in the long run.
An excellent international payroll service provider should have an in-country team with a deep understanding of local labor and employment laws, which can help to ensure compliance and ease the burden on your internal HR team. This is particularly important in countries with a complicated labor law landscape, such as Brazil or Canada, where many regulations may affect payroll processes.
The best global payroll software tools also include features that make it easier for employees to keep track of their wages and pay stubs. This can be a massive relief for employees who work across multiple countries and currencies and those who need to submit expenses or request time off.
Finally, any international payroll software solution worth its salt should offer a mobile app that employees can use to access their payslips and other information anytime. This is becoming increasingly expected, and any international payroll services that don’t have a reliable mobile app are missing a significant opportunity to provide a better experience for their users.
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