As companies expand into new international markets, compliance with local regulations can become tedious, expensive, and difficult to manage. Each country has its own regulations in place that affect how companies conduct payroll operations in the country—like tax withholdings, pay schedules, and a myriad of other payroll requirements.
Selecting the right international payroll partner helps companies better navigate the difficult waters without losing focus on their global business goals.
Choosing the Right International Payroll Partner
When considering an international payroll outsourcing solution, companies must decide whether to seek a payroll partner that specializes in a single territory or a partner that can manage payroll on a global scale.
Payroll partners that specialize in a single country are beneficial for companies looking to expand into a single international location, as they provide focused support and expertise in the target country.
However, companies whose global expansion strategy includes more than one country will benefit from selecting an international payroll partner that has vast experience in multiple markets. These providers give companies a single point of contact that provides them with guidance and expertise to help them navigate the financial requirements in all of their target countries.
6 Questions to Ask an International Payroll Partner
Before committing to a payroll partner, companies should carefully vet multiple providers to determine the best fit for their business needs and ensure a prosperous partnership.
Below are six questions every company should ask before selecting a global payroll partner:
1. Will the Payroll Partner Guarantee Performance and Implementation Targets?
Companies need to define clear, agreed-upon goals in order to help shape the relationship with their payroll provider and ensure a positive experience going forward.
2. Are Services Completed in-House or Delegated to Local Vendors?
If a payroll partner uses third-party local providers, it is important to know how they are managed and whether or not it will affect their relationship with the international payroll provider. This helps companies understand how the relationship will work going forward.
3. What Is the Composition of and Investment in Their Compliance Team?
Companies should ask where a team is located, how many experts they have in a particular market, and what they do to ensure their global payroll operations are compliant with all local regulations. These factors determine whether a payroll provider has the necessary expertise to help companies avoid compliance issues down the road.
4. What Technology Platform Do They Use + How Does it Integrate?
It is important for companies to understand whether or not their current payroll systems will integrate with the platform used by their payroll provider. Clarifying this will help ensure a smooth and seamless implementation of a company’s international payroll operations.
5. What Is the Payroll Partner's Experience With Expat Payroll and Tax Compliance?
Compliance requirements for expatriates are different in every country, and companies must understand the requirements in their target countries. Before selecting a global payroll partner, companies should make sure that partner understands the unique requirements for each type of employee they plan to hire in a country.
6. What Ongoing Support Do They Provide Their Clients and Supported Employees?
Do they offer online documentation and troubleshooting? Do companies have a dedicated representative on the account that they can call in an emergency? Companies need to anticipate how the long-term relationship with a payroll provider will work and how their employees will interact with and benefit from the solution.
Keep Communication Open
Once you have selected an international payroll partner, you should focus on maintaining open lines of communication with your partner. By establishing clear goals for the relationship with a regular schedule of reporting and follow-up, companies and their global payroll partners can set the foundation to build a successful working relationship.
It's also beneficial for companies to hold an annual review of their account. Annual reviews provide an opportunity to examine inefficiencies, discuss opportunities for improvement, and hear about new global payroll solutions and integrations that can provide additional benefits.
Confidently Partner with an International Payroll Provider
The right international payroll partner helps companies go global by providing expert insight to ensure compliance with payroll and tax requirements in international markets. Velocity Global's integrated Global Payroll solution conquers every global payroll challenge by enabling companies to pay international talent accurately and on time while ensuring compliance with local labor laws.
Reach out to Velocity Global today to learn more about how our Global Payroll solution helps simplify your global business goals in over 185 countries.