Simply put, global payroll is the management of your company’s entire payroll into a centralized platform. If you have employees in multiple countries, global payroll consolidates your payroll streams into one location to provide accurate, standardized, and on-time payroll to your workforce, no matter where they are located.
What Is Global Payroll?
Running payroll in different countries is a complicated and multi-faceted process that can create costly and time-consuming challenges. It often requires using numerous currencies and a variety of languages, understanding country-specific hour and wage rules, and navigating complex tax laws. Running incorrect payroll in international locations can lead to fines, legal fees, and compliance issues.
However, a global payroll provider helps you bypass those challenges. Using a payroll partner streamlines the process into a one-stop shop solution for your entire payroll operations, ensuring that you stay compliant in each international market. This solution allows you to focus on your employees’ overall productivity and work culture while your payroll partner takes care of the details.
Benefits of Using Global Payroll Solutions
Global payroll systems help you effortlessly pay your teams in global markets. This centralized process ensures that you have:
- Local expertise. Regional professionals with in-country experience and resources do the heavy lifting to support your teams when they need it, anywhere in the world.
- Accurate and on-time payroll. Global payroll guarantees compensation to your distributed workforce in a timely and compliant manner.
- More time, less HR. This solution saves you time navigating local regulations between different countries, so you have more time to focus on your day-to-day responsibilities and goals.
What Are the Types of Global Payroll?
There are two main types of global payroll solutions when you are engaging with and managing international talent:
- Paying local vendors. You can find an in-country vendor to handle your payroll administration for employees working in that particular market. However, using a local vendor may limit your visibility into the payroll processes or could lead to security risks.
- Payroll aggregation. You can outsource one vendor to take on the responsibility of all your payroll processing in any international market. This payroll aggregator is partnered with trusted payroll vendors around the world to reduce internal management, costs, and confusion. Payroll aggregation is a more robust and comprehensive solution to ensure you’re able to meet all your global payroll needs.
How Does Global Payroll Work with an Employer of Record?
If you don’t own an entity in the country where your employees are located, you can partner with a global Employer of Record (EoR) to help hire, pay, and manage your global workforce.
An EoR partner onboards, pays, offers benefits, and manages supported employees on your behalf. Your partner handles all risk mitigation, local labor requirements, and compliance so you can focus on leading your distributed team.
Alternative Solutions to Paying Global Talent
There are scenarios when payroll aggregation or paying local vendors don’t quite meet your payroll needs. Perhaps you already have an established entity in a foreign market, or you’re targeting niche talent for a one-off project. If so, there are other solutions to paying your global workforce.
Pay International Employees with Multi-Country Payroll
If you already have an entity in one or more foreign countries, your company can still outsource a multi-country payroll provider to streamline payroll for your employees. This solution strictly processes your payroll for your distributed workforce through one vendor without the additional employment or immigration solutions offered through an EoR.
Engage and Pay Contractors
If you need to hire talent in other countries but don’t wish to hire employees, engaging with a contractor offers more flexibility and cost savings. Using a contractor offers a simpler payment structure and allows access to specialized talent you need when you need it.
Staying Compliant With Global Payroll
Paying your international workforce is a tricky process, but utilizing global payroll through an Employer of Record takes the administrative burden off and allows you more time to focus on your day-to-day tasks and goals.
Velocity Global simplifies the employer and talent experience using cloud-based technology, personalized expertise, unmatched scale, and comprehensive solutions. Our team of professionals matched with our full suite of workforce solutions helps companies engage, manage, and pay global talent in more than 185 countries. Reach out today and find out how our global payroll solutions address your payroll needs.