Even when trying to process payroll purely domestically, thing as can become very complicated, very fast but when the payroll processing extends to the entire globe things can become nearly impossible. With the nature of payroll and employment law being so malleable and changeable it can be really tough to get to grips with the process even when it is your full time job to do so. That is why when you are running payroll across multiple continents, countries, currencies and time zones it is vital to employ an international payroll provider. An international payroll provider can be a true asset in the arsenal of a globally expanding business. Having a specialist service at your disposal when it comes to hiring and paying staff can be totally invaluable to keeping your workforce happy and your company compliant.
It is of the upmost importance that you choose the right legal structure when expanding your business overseas. Is it the right thing for you to set up a separate entity in the country you are wishing to run payroll through or does it make more sense to use an Employer of Record (EOR) service?
Every country has totally different laws and rules when it comes to how people are paid. Knowing about one country’s pension obligations is often not going to be helpful in another country. So, with this in mind, global compliance can be a very complicated matter. For instance, in the United States of America the minimum wage can vary from state to state, so just being aware of that alone can be tricky. Pension duties can also vary significantly, for example in the United Kingdom it is compulsory for all employers to enrol their eligible employees into a pension scheme but in Chile no employers are forced to make contributions. Keeping abreast of global payroll laws is what all good international payroll providers do. If deadlines are missed or if numbers are incorrect there could be huge fines and penalties that vary in severity from country to country.
Other aspects of global compliance that have to be taken into consideration are things like, cultural differences; currencies and currency exchange rates; time zone differences and taxes. Seeking the guidance of specialists is your best option rather than trying to navigate this ever-changing, complicated world with no prior knowledge. You might need local partners on the ground to help you figure out the best way to communicate with your staff, or a low cost, steady foreign exchange set up, whatever you need, a great international payroll provider will make your international expansion as simple as possible.
Evaluating the scalability and capability of your international payroll providers is crucial when deciding what provider to use. If the grand plan for the future of your company involves further global expansion, then you need to make sure you pick an international payroll provider that can keep up with your success and growth. Being in a position where you need to run payroll in a new country and your provider cannot fulfil this requirement is not a good place to be in, in fact it can be detrimental to your business. You need to make sure that your provider has the most extensive knowledge of the main market you wish to be in, do your due diligence and be sure you have found the right match before you select and onboard with your candidate.
- Existing payroll systems and strategy
When strategizing for the future of how payroll is run in your company it is important to take a close look at the current processes you have in place. To understand where you want to go it is always a good idea to see where you are coming from.
What are your short falls?
Where are mistakes being made?
What could impact your business if not properly addressed?
Every company is different and every workforce at every company is different. For instance, some companies pay their workforce weekly, others monthly and some only hire contractors or gig workers. Even just taking these variations into account and readjusting certain aspects of the payroll can have an impact on the bottom line of a company. A full analysis of your current payroll practises is imperative to a clear and cost effective strategy for navigating international payroll and deciding which international payroll provider is the right fit for you.
- Don’t delay your implementation
Having a centralised international payroll provider should be a part of your overall business strategy and global expansion from the start. If you leave these kinds of foundational, crucial back end processes to the last minute or when things are too complicated then it has the potential to derail your whole business. Each company requires a tailored approach when it comes to their payroll strategy and don’t delay yours by one more minute. If you are starting small then don’t worry, many international payroll providers can onboard as little as one employee and similarly if you are big with thousands of employees and a complex benefit and payment structure do not hesitate getting in touch with international payroll providers and see who will be a good match for your needs, you might just be one mistake away from the penalty that topels your whole business.
How TopSource can support you
TopSource has set up a fast-track international payroll services to make transitioning to using us as your providers easy, guaranteeing a simple on boarding experience to support compliance in as little as four weeks.
Simply contact us to find out more.
If you’re a TopSource customer, we can provide you with a separate payroll for your international payroll needs.
You can email firstname.lastname@example.org or call 0203 6915303.