Many businesses and organizations struggle to come to terms with global payroll solutions. As globalization continues to become the norm for companies to find success, global payroll has become an area with unique challenges and demands.
While some companies have tried localized models to pay employees in different countries, many seek a more efficient approach. This shift in payroll strategy creates new challenges that companies are learning to deal with every day.
Challenges with International Payroll
The true challenge of international payroll lies in the differences among regulations in varying countries. It’s hard to manage these differences while maintaining compliance.
Laws differ from country to country, along with tax, healthcare and pension requirements. You will need to understand the intricacies of your particular country, including but not limited to changes in payroll and labor laws.
The main areas of concern to consider are:
- PTO (paid time off) accrual and compensation – Does a specific country require certain amounts of PTO accrual? Can you cash it out? Is it a requirement?
- 13th month pay laws – This is a form of monetary benefit received by an employee. Who is required to pay 13th month? Who is entitled to receive it? How is 13th month pay calculated?
- Monthly, quarterly and annual payroll tax filings – What are the components of tax withholding? When should you pay?
- Pension, unemployment or social security
- Language barriers & area – Where there be language barriers that hinder you? Will there be a time zone delay?
Managing International Payroll with Ease
Unless you’re an expert in the aforementioned areas, it may seem overwhelming to deal with all of these factors. Don’t fret because you do have solutions.
The best option to stay compliant is to hire a third party resource that specializes in international payroll solutions. The third party will help you overcome what seems like endless issues considering compliance. Also, they help your company streamline the payroll process, eliminating the balancing act of staying abreast of all labor and payroll laws.
An international payroll professional ensures you are staying compliant with country-specific regulations and requirements.
It’s important to be sure to select the right vendor for your specific company. Do your research and find out which company will best help you stay compliant.
In addition, a third party resource helps you establish a strategic course that adheres to best practices, protects your company from unnecessary audits and fees, optimizes efficiency and sharing of resources, all while increasing employee satisfaction.
Contact us today to learn how international payroll services can assist your company during global expansion!