International payroll is necessary when businesses of any size want to pay people abroad while staying fully compliant in each country. It’s not just about being able to process payments internationally but about being able to hire international workers and run payroll as if you had a registered company in each of the nations that at least one of your hires calls home.

One could argue that you could do just that by having a payroll provider or a PEO/EOR in each country. However, global payroll systems take it to the next level. These tools help you avoid the extra costs and logistical headaches of having multiple providers. This can be especially challenging when you need a central repository from where to manage them all, and the data inherent to payroll processing is scattered across various systems.

A basic example of the simplicity of using global payroll services is that, at least with the ones we’ve mentioned here, you’re assumed to pay each worker in their local currency. They can literally decide this with a couple of clicks.

This ease of localization extends beyond salary as well. Some of these tools can provide all the employee benefits required by law in each individual’s country as if they worked for a local company. Depending on the payroll software vendor, these can include social security, benefits insurance, retirement funds, disability, and more. It also means that taxes are handled for them using the same tool. This is what global payroll systems mean when they tout full compliance.

International payroll is necessary when businesses of any size want to pay people abroad while staying fully compliant in each country. It’s not just about being able to process payments internationally but about being able to hire international workers and run payroll as if you had a registered company in each of the nations that at least one of your hires calls home.

One could argue that you could do just that by having a payroll provider or a PEO/EOR in each country. However, global payroll systems take it to the next level. These tools help you avoid the extra costs and logistical headaches of having multiple providers. This can be especially challenging when you need a central repository from where to manage them all, and the data inherent to payroll processing is scattered across various systems.

A basic example of the simplicity of using global payroll services is that, at least with the ones we’ve mentioned here, you’re assumed to pay each worker in their local currency. They can literally decide this with a couple of clicks.

This ease of localization extends beyond salary as well. Some of these tools can provide all the employee benefits required by law in each individual’s country as if they worked for a local company. Depending on the payroll software vendor, these can include social security, benefits insurance, retirement funds, disability, and more. It also means that taxes are handled for them using the same tool. This is what global payroll systems mean when they tout full compliance.

Certain considerations must be made before assuming that the right global payroll providers will do the heavy lifting for you, ensure your people are paid on time, and present everything in a user-friendly way.

• Knowing Local Laws: Just because the global payroll services provider will be doing part of the work for you doesn’t mean you shouldn’t be aware of what that work is. Like with any good manager, delegating doesn’t mean ignoring. As an employer, you must adhere to the international HR and regulations in each country where you’ll pay someone. This not only helps with making sure that you’re staying compliant but also aids when creating a budget, deciding whether to hire someone, shifting from contractor status to full-time, etc.‍‍
• Know Your Costs: Fees for some of these global payroll systems may seem high compared to payroll software for small businesses or even some enterprise payroll software solutions. It helps to try and calculate how much you’d spend if you choose to go with individual providers in each country or even set up an operation there and handle it in-house. That should help determine how much is reasonable to spend on the project instead of trying to find the lowest-cost provider. Among these costs, you should also consider the fines you would incur if you stay non-compliant or even the potential cost of churn if your employees and/or contractors leave you for not providing the full range of benefits.
• Loading The Project Mainly into HR: Traditionally, human resources departments tend to have little time, lots of work, and few idle hands. Looking to them to solve the puzzle of international payroll and stick to a budget is one way of ensuring that the project’s outcome will be subpar. Some key payroll software features to look towards are payroll automation and tax filing, as they help free up some of HR’s time while keeping them in the loop. Also, choosing said solution should be taken into the hands of the finance team and upper management since it is, after all, an investment.‍
• Be Mindful of Data Protection: Data protection laws, especially GDPR, should be one of your concerns if you hire people in new markets. When trusting a software company with your employees’ data, you should know which laws are being obeyed when it comes to said data’s safekeeping. You should also know what kind of practices are put into keeping it safe beyond the legal requirements.

Most multinational payroll providers charge a fee per full-time employee and a smaller fee for contractors. Many providers will give you a custom quote if you ask for a demo, but not every vendor discloses its initial pricing scheme online. For reference, check out the following payroll software pricing list:

• Atlas: The Essential plan starts at $99 per month, then $149 for Premium or custom for Enterprise.
• Papaya Global: Starts at a $20-$100 fee per employee per month for the basic payroll. Global EOR starts at $770 and Contractor Management from $25 per pay cycle.
• Deel: Pricing is per worker per month. Contractors start at $49 and full-time employees hired with an EOR start at $500.
• Remote: Pricing for employees starts at $299 per month and they offer custom quotes after that. To hire contractors, you only pay the payment processing fees.
• Oyster: First two contractors are free, then $29 per month. EOR for full-time employees is $399 or $699 per employee per month.
• Multiplier: $400 per month to hire employees, $40 per month for freelancers.
• Rippling: Starts at $8 per user per month, but varies depending on the amount of modules.‍
• TFY: ATS and FMS are priced separately. The FMS is $5 per team member.