Best Global Payroll Services & Software (2024)
These are the best global payroll services providers and software vendors, hand-picked by our HR tech experts. Get pricing, feature breakdowns & comparisons, and detailed platform reviews below.
Global payroll services help businesses compensate employees while staying compliant, regardless of the country in which each worker is based. As remote work becomes increasingly commonplace, such an endeavor is best done through software.
A global payroll system lets companies pay and manage employee benefits, even if the software vendor also acts as an employer of record for full-time employees. Ideally, everything from payslips to tax information to health insurance is managed through this platform as if everyone were in the same city.
So, if you’re looking for a way to pay your remote international workers while having a single source of truth for all that data, you’ve come to the right place. The international payroll services featured below (handpicked by our in-house HR tech experts) are the best for employing people in different countries, guiding you through the process, and even providing additional HR services and features.
Top Global Payroll Services
To find the best global payroll software, we demoed dozens of products and talked to our community of HR experts. We needed to understand what features worked for them, so we focused on products that would help many kinds of organizations while also providing detail on those that are great fits for specific applications.
The international payroll solutions below all score highly on usability, pricing, flexibility, and, of course, each company’s track record. In all cases, we thought of products with which it would be easy to make a switch, whether upgrading plans with the same vendor or migrating employee data elsewhere.
- Usability: Running payroll in a multitude of countries may not be the most fun thing on earth, but we favored tools that make it a smooth and relaxed experience thanks to their intuitive workflows and aesthetically pleasing dashboards.
- Pricing: This list covers all kinds of budgets, from free tools to get started with paying contractors overseas to enterprise plans on which you could migrate your entire international payroll to one tool.
- Flexibility: Among the dozens of products we tried, we favored those that offer a good variety of payroll options (like contractors and full-time or part-time) on an EOR or PEO scheme, with the ease to move from one to another.
- Track record: Some of these companies are unicorns in their field, others do great in the SMB segment, and you can see why if you talk to their users. For each, we made sure there were solid and steady growth markers for years to come.
If you’d like to read more about our methodology, like the stats we look at and how we go about talking to vendors and users, here’s an article on how we evaluate HR tech vendors.
Deel
Deel can manage payroll compliance in 150+ countries and has a notably easy-to-use interface, using one platform for all countries.
PROS
- One of the best features of Deel is its customer service. They offer 24/7 in-app support and the fastest-in-class onboarding speed of 2-3 days. Users get access to local payroll experts in each jurisdiction, and support is available for contractors facing challenges setting themselves up as an LLC.
- Integrates seamlessly with common platforms like Quickbooks, Bamboo, Greenhouse, and more. They also offer custom integrations to automate and sync processes.
- Self-service approach; tech-enabled features so customers can jump in quickly and easily. Our user researchers found it quite easy to set up: the identity verification process consistently took less than 24 hours, and in some cases, it took mere minutes.
- Automated invoices, which are a breeze to do as long as they’re in English, both on the company and the contractor or employee’s side.
CONS
- Some of Deel’s best and most powerful services, like onboarding automation, appear to be add-ons, which might be too costly for some companies
- There is little to no flexibility when it comes to altering their contracts or service agreements, so many changes would require an addendum.
- There is a $5 fee per payout
- As far as we’ve seen, it’s not possible to generate invoices in another language.
With Deel, companies can hire employees in a multitude of countries without it getting messy. From the same dashboard, you can manage international payroll, benefits, taxes, and compliance in over 150 countries.
Deel was one of the first companies to offer global payroll as their primary service. Their composite of contractor and freelancer management + EOR and PEO capabilities, as well as their sleek design, made them stand out early in the category's history.
Nowadays, they’re also notable for having expanded their tool quite a bit, adding Core HR capabilities to their platform. Other newer Deel features include immigration support, background checks, and their Shield module, devised to protect you against compliance issues.
- Brex
- Duffel
- Andela
- HomeLight
- Makerpad
A cool thing about Deel is that you can sign up for free and play around with the tool, not being charged until you pay your first team member. Once you do, pricing for Deel will vary as follows:
- Contractors: At $49 per contractor per month, Deel takes care of payroll and compliance for contracts in 150 countries.
- Full-time: From $500, this plan lets you hire full-time employees in a new country without having to set up a legal entity there. Deel becomes an Employer of Record and hires the employee for you.
Best For
Companies, big or small, who wish to stay compliant when hiring people in multiple countries. Great for those who wish for an EOR / contractor management balance.
We use it to track our contractors, pay their invoices, collect W9s. As our EOR, it allowed us to bypass the financial and time costs with establishing a subsidiary overseas. It keeps us in compliance with international labor laws, includes global payroll, offers benefits/participates in local social welfare programs and ultimately retains key employees we would have lost as 1099 contractors.
I like that the process and layout is very similar regardless of which product and service you use from them - quite intuitive. It supports employers ability to maintain compliance by listing out requirements and flagging missing items or expired items. Lastly, being able to file 1099s digitally is a luxury I hadn't had previously. A total time saver.
We implemented Deel initially as a way to pay our onshore 1099 contractors, track their contracts and contact information outside of our HRIS. After two years, we had a new problem to address and changed our Deel platform to include an EOR. We had offshore contractors that we wanted to bring on as full-time employees to retain them and ensure compliance with the IRS. The change was seamless and the EOR is intuitive, informative and our offshore employees have been satisfied with the service from their end.
I think there is room to improve the connection between employer and the EOR service representatives in that a dedicated point-of-contact that is in house with Deel and not an international partner. Another consideration for EOR is having to pay a month's salary deposit up front for payroll is not ideal for cash flow. Lastly, I would love to see more employee and contractor features that you might find on a traditional HRIS because I believe it would be a better and more enriched experience for them.
For 1099 contractor management, oftentimes you use an ERP or accounting SaaS which has limitations. Deel bridges the gap between accounting SaaS/ERPs and an HRIS. For EOR, Deel is middle of the road in value. It is a great option for smaller OPEX budgets, but there are other EOR companies who offer more desirable features and better in-house service partners.
Consider the number of contractors or employees you would need for the upfront and annual costs to be justified. Whether or not you are familiar with global payroll, consider how much compliance support you need or is desirable for you. Lastly, consider whether you are up to converting your local currency to the international currency. Deel does not currently offer this in the employee profile, they only show the employee's local currency.
There is better customer service and help tutorials. Further, I have found there is an increase in the amount of educational materials available through Deel in order to stay current on contractor and global payroll trends and compliance.
I have known it to be used by HR and Finance professionals alike. Payroll administrators, regardless of where they fall organizationally, will find this tool beneficial. I believe organizations where these contracts or payrolls are relatively straightforward can benefit. Running payroll and paying invoices takes 10 mins or less per pay period.
I believe complex and large organizations may not find Deel to be scalable to their needs. At volume, Deel is not the best for tracking or reporting. For smaller teams, these features are acceptable and function appropriately.
PapayaGlobal
Papaya Global made our list of best global payroll software providers for enabling distributed teams to legally auto-pay contractors and employees in 160+ countries while making sure their data is protected by leading security and compliance software.
PROS
- Papaya’s full-service payroll guaranteed payouts in 72 hours in over 160 countries.
- It has a straightforward pricing system with a 60-day money-back guarantee if you are unsatisfied with the platform’s performance.
- Offers a dedicated customer success manager or global payroll expert in your time zone who assists you in the local timezone and language. You also get access to their in-house specialists on global employment in 160 countries without extra fees.
- The latest starter monthly fee for the full-service payroll plan has dropped to $12 per employee (the previous one was $20).
- Provides four individual solutions (data and insights, supplemental benefits & immigration support, payment services, and employee data management) at an affordable starter price.
- Papaya Global packs the EOR services you need to do global payroll and employment compliantly in over 160 countries.
- Automated payments in over 100 currencies, 80 of them directly to the worker's bank account through its global banking partners.
- Dedicated customer support providing locations-specific knowledge regarding employment and payroll.
- End-to-end payroll guaranteed payouts in 72 hours.
- Offers four standalone solutions: data and insights, supplemental benefits & immigration support, payment services, and employee data management, making the platform more affordable and scalable.
CONS
- Lacks local entities in the countries where it sells services. We found no information regarding its tax penalty guarantee either.
- Doesn’t offer a free trial or free plan.
- There are a few additional fees, including a set-up fee per location, an onboarding fee, a cycle fee per employee, and a year-end fee for tax filing. There’s also a required deposit (refundable).
- There aren’t many existing integrations, but you can use the platform’s pre-built APIs, SFTP, and custom API integrations for free.
- No free trial or free plan.
- Doesn’t own entities in all the countries it serves. The platform forms relationships with existing local in-country partners to handle employment in a specific region on the client’s behalf.
- BI analytics reports and global immigration services cost additional fees.
- Charges extra fees for setup, onboarding, employee cycle, and tax filing. Also requires a refundable deposit.
- Built-in integration options aren’t very robust. However, the platform does offer pre-built APIs, SFTP, and custom API integrations for free.
Papaya Global is loved by several users we have talked to and also by our editorial team. It is one of a few vendors that provide a straightforward pricing point (no one likes hidden fee surprises!), a solid set of HR tools, robust BI analytics reporting, and in-country customer support.
We appreciate how the platform has kept both employers and staff in mind when developing its HR tools. As an employer, Papaya Global gives you access to payroll, payments, and workforce analytics in one unified platform. The global payroll software provides automated payments in local currency, country-tailored benefit packages, pay slips in the languages of employees across over 160 countries, and AI-based engines to audit invoices for payment accuracy. Papaya Global backs you with in-house benefits experts who advise you on the soundest plans for specific locations without costing you extra. As an employee, there is a self-service portal you can easily access and navigate through. You can find onboarding documents there, request time off, check your docs, and review payslips. The newly launched mobile app (February 2023) will soon allow you to do these things, plus access payment calendars, bank details, and company announcements on the go.
Papaya Global’s global equity management is another thing that sets it apart from other payroll software. With this tool, you can offer equity to employees as part of their compensation, regardless of their location. As we mentioned earlier, the platform does a great job of providing advanced analytics reporting. By "advanced," we mean that you can access dynamic and visual insights into not just payroll, but also HR, billing, and admin data.
However, there are a few things you should keep in mind when considering Papaya Global as your global payroll software. First and foremost, Papaya Global does not own any local entity where it provides services. The platform relies entirely on its third-party local partners. While its pricing is transparent, there are additional costs besides the plan’s price, including a set-up fee per location, onboarding fee, cycle fee per employee, year-end fee for tax filing, and refundable deposit. It is worth getting in touch with Papaya Global’s team to get a full quote for your specific requirements to evaluate the platform further.
Microsoft, Intel, Toyota, Wix, Fiverr, Johnson & Johnson, Deezer
Papaya Global has just added four standalone services to its offerings besides the three plans:
- Full-Service Payroll service: It starts from $20 per employee per month, depending on your operation. It includes its advanced payroll platform, embedded payments, global partner network, and employee portal.
- Payroll Platform License service: Starting from $20 per employee per location, it is for businesses that need to upgrade their payroll and payments tech without replacing the current payroll partners.
- Data and Insights Platform License service: Starting from $150 per employee per month, it includes tools for real-time analytics on payroll costs and headcount.
- Payments-as-a-Service service: Starting from $3 per employee per month, it provides an embedded platform designed for workforce payment.
- Global EOR plan: This plan is between $770 and $1000 per employee per month and lets you manage all your EOR locations on one platform.
- Contractor Management & IC Compliance plan: Particular services are outsourced to a domestic or foreign contractor for periods of rapid growth and the need to reduce labor costs. This plan starts at $25 per employee per pay cycle.
- Payroll Intelligence Suite plan: This plan lets you consolidate all workforce and payroll data from all your operations into a single dashboard, priced at $250 for an annual plan or $320 quarterly per location.
Best For
Those that want to automate global payroll in countries where they have entities can benefit from Papaya Global. The platform is also a go-to payroll software for businesses whose international hires (employees, contractors) are based within Papaya Global’s country coverage.
We use Papaya Global to handle overall payroll administration, offer letters, benefits, etc. Their system provides us with a method of handling these operations without having to be fully versed in Peruvian employment laws.
Ease of use. Subject matter expert for international payroll. Takes away the liability of mishandling payroll due to lack of knowledge.
We started working with Papaya Global because we needed a way to pay our employees located in Peru. We are currently with a PEO and they do not cover international payroll. We have been using them for a year now.
I cannot think of anything the company could use to improve at this time.
Their pricing is more competitive than the competition.
Ease of use, knowledge base, global reach in case you need to expand to other areas, pricing.
Any organization could use their services if they have a need to handle payroll internationally and do not have internal resources that can facilitate the process.
Remote
Remote global payroll software enables employers to hire and pay contractors and employees in locations around the world. They also offer IP protection, data security, 24/7 localized customer service, and ample platform customization.
PROS
- Flat fee structure. No deposit is required (conditions apply), and there is no extra charge for benefits administration.
- Mobile apps are user-friendly and frequently updated.
- 24/7 local support via email and live chat.
- Equity-based compensation available.
- Helpful HR tools and global employment guidelines are free to access via Remote’s website.
CONS
- It may be out of reach for small teams with limited budgets.
- Only supports direct deposit and wire transfers, and no off-cycle pay runs.
- No phone support is available.
- Remote has limited pre-built integrations, but you can access its custom API for free.
Remote is one of our top picks for global payroll solutions.
Remote offers localized payroll services, handling benefits administration, payroll processing, and contractor payments. Remote owns legal entities in more than 60 countries, so it’s one of the most effective solutions for growing teams who employ and pay international employees and independent contractors.
As an Employer of Record (EOR), Remote handles employment's administrative and legal aspects, like payroll processing, benefits administration, tax, and legal compliance. For those who have handled tasks like these close to home, it’s not difficult to imagine how profoundly complicated and error-prone global payroll is. With the help of Remote, companies can focus on doing their actual work, whatever that may be, rather than learning the intricacies of payroll across the planet.
Loom, GitLab, DoorDash, HelloFresh, Workato, Semrush, Teamway
- Global Payroll: $50/employee/month
- Employer of Record: Starts at $599/employee/month (when paid annually)
- Contractor Management: $29/contractor/month
- Contractor Management Plus: $99/contractor/month (Everything in Remote Contractor Management with added indemnity coverage)
- Remote Talent: Starts at $119/month
- HRIS: Free
- Startup and nonprofit discount: Eligible startups and nonprofits can get 15% off EOR and Contractor Management services for 12 months.
Best For
Great pick for either remote-first businesses or those with distributed workforces.
Remote was introduced to an international employee or contractor after they were hired and the first part of their onboarding process. They were asked to complete basic personal information; such as address, contact info, emergency contacts, and bank details for payment. Medical benefits were offered to employees and could be elected through the platform. Once employees and contractors were onboarded they could access their portal at any time to view their personal details, and pay stubs. Payroll ran on a bi-weekly and semi-monthly basis for employees and contractors, this was dependent on their in-country laws and was processed completely by Remote. We would fund the platform a month in advance for payroll. In some cases we had employees who submitted timecards for overtime differential.
The platform was easy to onboard new employees, and select and edit all personal and employment details. Employees and Contractors were paid timely and we never ran into any payroll issues of people not being paid on time. We had monthly calls with our Account Rep who was always willing to step in to escalate or help answer any questions we had or anything that came up that was employee specific.
Our org purchased the platform so we could pay and offer benefits to our international employees. I used Remote for just under 2 years. We had over 50 employees in 5-10 different states and using this platform allowed us to offer benefits in those local countries, along with any other country-specific benefits that in some cases we were required to offer. Remote also served as our EOR, employer of record, and provided legal protections related to employee terminations. All international employees and contractors were onboarded into the platform at hire and could access their portal at any time.
There was no reporting function. There would be payroll reconciliations each month, sometimes there was a payment due to us and other times we underfunded accounts, this posed problems with forecasting and budgeting for our finance team. It was unclear and not detailed on employee pay stubs to see what the benefits breakdown was for employees and employers. Meaning who was covering what percentage or what amount was being paid by each party on a biweekly or monthly basis.
I know Remote is an EOR and not all international platforms are. Over the last year I used a different international platform and did prefer that over Remote. The functionality was built out more, support was more responsive and as the HR admin I had more control over the contracts and editing.
How many employees or contractors you are planning to hire internationally. Does Remote support those countries and in what way? What is your annual budget for an International HRIS tool? How do you want federal taxes to be withheld from international employees or contractors? Do you want to offer benefits to international employees? If so, what benefit tiers are you looking to offer, can Remote support your company goals.
Remote increased the number of countries they offered onboarding and hiring during the time I used the platform.
Companies looking to hire internationally and ones' where they do not want to be the Employer of Record and would prefer the HRIS have an entity in the countries you are looking to hire in and be the EOR.
Organizations that do not have any plans to grow globally.
ADP
ADP GlobalView is the solution for international payroll from one of the most reputable and long-standing companies in the space.
PROS
CONS
If you intend to manage global payroll for thousands of employees, ADP’s GlobalView should be on your list of vendors to consider. The payroll giant has put together a solution that’s specific to big businesses, providing them with a single system to unify all global employee payroll data while letting you stay compliant.
For this product, ADP also operates with local experts. You can process payroll yourself, or outsource most of the back office payroll functions to ADP’s team. Finally, GlobalView works only in 40 countries, but it can be combined with ADP Celergo to extend their coverage to up to 140 nations.
Among others, ADP’s global payroll solution is used by the likes of PayPal.
Like with most ADP products, pricing details aren’t available online, since they’ll likely provide a custom quote once you request and have a demo.
Best For
Large enterprises that want a single place from where to manage an international workforce.
I typically use it every week. I use it to check my bi-weekly pay stub and access payroll info. We also use it to post job applications and advise HR of vacancies. Previously it was used to submit performance reviews which were done quarterly or semi-annually depending on the role (now using PATI). I would also use it to review the organizational chart for contact info when needed. I also found the quick links and HR/benefit information to be very useful and would frequently login just to find links and information about other company resources.
I really like that all the HR resources are essentially located in one place, especially with links embedded to external sites (eg. benefit provider). I also really like that I can access all my payroll info online in one place. The organizational chart feature is also really helpful for identifying the reporting structure for areas of the business I was less familiar with and help me connect with the appropriate team member on cross-functional projects.
We bought ADP to cut back on internal payroll costs, provide employees with online access to their payroll info, avoid manually mailing out paper T4's every year, consolidate HR information and links into 1 platform, streamline data entry requirements for the payroll team, help move employee calls and inquiries to the ADP team, free up internal payroll/HR time, and streamline HR recruiting and tracking request. I have been personally using it for around 2 years now I believe.
The login process always feels very cumbersome with the multiple authentication steps and 2FA. The performance review functionality was extremely tedious - there were a lot of different screens and it wasn't easy to locate reviews or edit them - it just seemed much more complicated than it needed to be and a lot of my managers struggled to complete their reviews even with instruction manuals. I also wish there was a way to inquire about any payroll discrepancies directly - employees would have to email me (with no visibility as a District Manager) and I would have to forward payroll and it always seemed to slow down the efficiency, especially when the answer was something simple.
More functionality and works as a total company website as opposed to just a payroll viewing platform. Much more visually appealing and easy to navigate than some other platforms (like some SAP ones I've seen)
How much functionality you want out of the platform - just access to paystubs or a fully integrated HR platform. Customization options - for example we could add custom fields like t-shirt size for team events and/or self-declaration options (eg. covid vaccination status)
We're still relatively new to the platform, so it's hard to say what is an ADP change or just an organizational learning, but I have seen the addition of new self-declaration fields in the employee profile. The benefits section and external links continue to expand as well. We struggled with the performance review section, but I believe this is now being worked on in the backend by our L&D team.
For a large organization looking to streamline HR / payroll operations, particularly if trying to move away from paper-based payroll/pay stubs.
Likely a smaller organization that just doesn't have the need for such a complex, integrated system
Multiplier
Multiplier’s global payroll solution helps you process payroll in over 120 currencies. You can also use the platform to administer benefit plans, give bonuses and grant equity to employees, among many other things.
PROS
- Multiplier offers a comprehensive platform that combines compliance, payroll, onboarding, and timesheets, providing a streamlined solution for managing these aspects.
- The platform supports multi-currency payments in over 150 countries, facilitating global business operations.
- Instantly generated multi-lingual contracts enhance efficiency and convenience for users.
- Multi-currency payments in local currencies
- Multi-lingual contracts made instantly
- Compliance, payroll, onboarding, and timesheets, all in one platform
CONS
- Integration options are currently limited, with Multiplier only integrating with BambooHR for HCM-type tools as of Summer 2022. However, they are actively working on expanding their integrations.
- Customers have expressed a desire for more customization options, particularly in relation to contract clauses and leave types, to better align with their specific needs.
- Some users have reported experiencing slow response times from the customer support team.
- Limited integrations. As of Summer 2022, Multiplier only integrates with BambooHR for HCM-type tools, although they are working on adding more.
Multiplier’s self-service global payroll solution is worth checking out if you’re looking to pay employees and contractors in local currencies and in compliance with local laws in over 150 countries.
Through the platform, employees and contractors can submit invoices for completed work for you to review and approve within the agreed-upon frequency. Employees are also able to access their payslips and contracts and track expense requests, bonuses, and other benefits from their accounts, which is quite handy.
From the employer side (admin account), you’re able to track the attendance of your global workforce, approve leave requests, and review timesheets for more context into what invoices/billable time are for.
Besides global payments, you can do quite a bit through Multiplier’s EoR platform, including hiring and onboarding employees, as well as giving them local health insurance and optional benefits such as bonuses and stock options.
Amazon, Fusion, Graphisoft, ServiceNow, Linklaters, and Korn Ferry are a few of the companies that use Multiplier’s global employment solution.
Multiplier’s pricing depends on who you’re hiring and paying; employees or freelancers. You get to cancel anytime, and no credit card is required for initial sign-up.
Be aware that apart from the mentioned plans, the employee insurance package is priced seperately. The basic coverage plan starts at $20 per employee per month, and the pricing may vary depending on the level of additional coverage required. Furthermore, pricing may also differ based on the geographical location.
Moreover, Global Payroll is offered as a standalone product suitable for businesses regardless of whether they have local entities or not. The pricing for Global Payroll also begins at $20 per employee per month
Best For
Multiplier is a great bet for organizations expanding their global workforce across the Asia-Pacific landscape, even though their reach extends beyond this domain. The platform's attributes cater to startups, mid-sized enterprises, and large corporations. An illustration of this versatility lies in their adeptness at managing a diverse array of contracts. Whether it involves nurturing an on-demand workforce, administering fixed-term arrangements, or orchestrating full-time engagements, Multiplier can adeptly navigate these intricacies.
We use Multiplier to find international talent. After we find who we are looking for, Multiplier helps us with our onboarding process for both new employees and contractors and gives an easy and secure way for our payroll to get our employees paid worldwide.
- Multiplier allows us to find talent worldwide.
- It helps us with our onboarding process.
- We can securely and easily pay talent anywhere in the world.
My organization started using Multiplier because we needed a reliable way to onboard international talent. We had several needs for talent worldwide on the contracting side and we were running into trouble finding reliable talent and a streamlined way to pay the talent.
- We have had some higher turnover on talent we have found through Multiplier.
- Not often but we have had to use other avenues to find talent because we did not find what we needed for a specific project.
- Multiplier does not have the best tools for language barriers between us and new employees.
I think the biggest way is that it’s a one-stop shop with being able to hire, onboard, and pay.
The biggest thing you need to consider is what type of people you’re trying to hire whether it be contractors or new employees. This will make a big difference in price.
N/a
If your organization is in constant need of international talent and if you're looking for a secure way to hire onboard and pay contractors worldwide, this platform might be for you.
If you do not need to hire internationally or if your hiring needs are not out of control.
Rippling
Rippling stands out from other global payroll companies because it handles every aspect of the payment process. Very few global payroll companies directly administer all of the steps needed to pay employees across the globe.
PROS
- Nested within HRIS
- Hire, pay, and manage people under a single system of record
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- Not advisable for very small companies with slow growth
- While you can buy a base tier and add payroll, the real “magic” of this system requires total immersion in the Rippling environment
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling went the extra mile on their global payroll product. They solved a business problem better and before anyone else in their weight class. At this point in their growth, they are agile enough to move quickly, but have just enough mass and inertia to put thousands of hours of labor into doing a complex thing right.
As we pointed out before, Rippling’s global payroll suite stands out from other global payroll companies because it handles every aspect of the payment process; from tracking hours to calculating and filing taxes. Very few global payroll companies directly administer these kinds of steps while also offering a full HRMS to plug it with.
With the exception of payroll titans like Workday, most businesses offering global payroll services are actually “aggregators” of other businesses– they arrange connections between an array of third-party vendors who are unified under one company name. This has some serious drawbacks. Like a game of telephone, a lot can be lost in translation as data is passed from one entity to another.
Built-in is better. This feature’s proximity to the HRIS means the integration process is simple. According to Rippling, it takes “about 90 seconds” to set up an employee for global payroll if you’re already using Rippling. Being built-in also results in seamless access across all dimensions of employee information.
Best For
We mainly used it for W2 and 1099 payroll, onboarding, offboarding, and reporting. For an added fee, you can utilize some of their workflow automation tools to optimize some of the more manual workflows.
- Domestic U.S. payroll: Rippling is recommended for a predominantly salaried workforce. There is a very basic timekeeping system that we utilized for our hourly non-exempt workforce for time off tracking and 1099 contractors. The salaried payroll is very easy to use; however, the state registration for payroll can be a bit complex. Reaching a payroll support person can also be a bit of a headache, especially during a payroll crunch, but there are also many helpful payroll support people. You can utilize chat, or they can call you to resolve issues. One of the biggest challenges we have faced was opening a payroll ticket and taking days, up to weeks, for it to close if it was a complicated issue. You do not get a dedicated customer support representative so definitely take that into consideration.
- International payroll: International Payroll: International Payroll is not supported, however, you can store HR Information for international employees. It's a bit more of a hassle to keep their information and turn off their payroll info, but helpful for having a full scope of the employee base.
- Onboarding / offboarding: The integration for onboarding with greenhouse ATS was a bit clunky. Names and basic information would transfer over from Greenhouse, but you would have to search the name on the Rippling end. Creating the onboarding packet was not too difficult, the user interface is pretty basic, but easy to set-up and administer for e-signature. Offboarding can be done in advance of a departure, and access points, notifying IT, etc. can be set up in an easy to use workflow. Departed employees can still access a limited version of their employee portal to see their W2s and Paystubs via Rippling after they've departed the company which is extremely useful.
- Laptop Inventory Management: We originally had paid for this service as we were a small HR team of 2 with no IT department at first. It's helpful to have as a service, but unfortunately it over promises and under delivers. There are frequent inventory shortages for laptops, so the best thing to do is purchase in bulk or purchase laptops to have on-site and send them out to new employees outside of the system. If you have your own IT department, in-house is a better way to go since this does cost a significant amount of additional charge.
- I liked that Rippling provides robust reporting across their different functionalities.
- Rippling does a great job at making a user-friendly interface to navigate.
- I like that it has all the bells and whistles you need for a small to medium sized business.
We started off using Gusto as our Payroll/HRIS. Our team grew from under 50 to about 110 in 6 months. Unfortunately, we quickly outgrew Gusto's Benefits, Reporting, and HRIS capabilities.
A nearly all-in-one system is difficult to find. Coming from Gusto, we knew we wanted to keep our benefits, payroll, and HR information in one system, with great functional reporting across these data points. This cross functional data helped us create great reports that helped us visualize our YoY growth, retention rates, benefit enrollment data, headcount, and much more.
- They nickel and dime every part of the platform, so you'll end up with hidden costs for unlocking parts of the platform that are usually included in others, and you'll end up with a larger cost than you originally thought. Ask for an upfront detailed overview of the costs of all the modules.
- Subpar customer service with not a lot of dedicated support.
Overall, it's a good competitor for small to medium-sized HRIS solutions because it includes HRIS/Payroll capabilities. They extend into all facets of HCM, but they do payroll, benefits, and reporting best. I appreciate they delve into different avenues, but a perfect all-in-one is impossible, so it's best to stay with what you're best at. In terms of an "all-in-one" solution, if your team is under <500 employees, it's a decent solution. The platform and company is still growing, so be patient with changes and bugs. But overall, 7/10 experience utilizing Rippling. They do listen to customers, advocate for change within the system, and move quickly.
- Budget - Rippling can start off inexpensive, but when you add the bells and whistles, it can get quite expensive. Make sure to ask what each module costs independently.
- Payroll Audience - If your population includes a significant population of hourly time keeping needs, this may not be the best platform. You can also integrate various time tracking tools as well.
- All-in-One - Unfortunately, there still isn't a perfect solution. It's important to know which modules to prioritize. If you care about your payroll, HRIS, and benefits admin in one, this is a good system for a small to medium-sized company.
- Customer Support - If you need significant customer support, Rippling may not be the best fit. It was a challenge getting a hold of our reps at times. For payroll support, you don't get a dedicated person so it can be a challenge. If you prefer to have white-glove service here, this may not be the best unless things have changed.
- App Integrations - Rippling is a closed environment, meaning you cannot create your own integrations. However, they do have a lot of APIs available for many of the largely popular apps/tools. Most of our tech stack was already aligned to what we used within Rippling so it wasn't too difficult, but it's a serious point to consider for things like your accounting system, time tracking system, expense management, etc.
Since the time we started utilizing Rippling, they have implemented significant changes to their platform. They added PEO services, global payroll, LMS, pulse surveys, and a few other new functionalities. They truly are innovating to become the all-in-one mid-enterprise platform.
I believe Rippling is great for companies under 500 employees with a predominantly salaried workforce. This tends to be more common in tech centered environments. Also when you have a lean team around Payroll/HR, it can be a great system to utilize.
A predominantly hourly non-exempt workforce. I think the platform would not be great for 500+ or <50 employees. It would be expensive for <50 employees, and be too manual for 500+, even with its workflow automation because of the integrations not working properly.
Globalization Partners
Globalization Partners are the makers of a global Employer of Record platform, putting together professional services and AI for more than just payroll.
PROS
- Their G-P Meridian platform is heavily focused on the EOR space, but it’s offered in several plans that can cater to varying needs, even those that might only need to hire people as contractors.
- Using their tool also implies access to a team of HR and legal professionals with significant experience in each country they operate in.
- Their UX has evolved continuously and gotten more intuitive and modern each time we delve into the product.
CONS
- Customizing a contract is only possible with the G-P Meridian Prime plan.
- Features like background checks, equity management, and IT equipment— to name a few— are only available as add-ons.
- There is no way to try out the software product unless you sign up for a demo and request a proposal.
Globalization Partners combines professional HR and global payroll services with an AI-driven platform. Through their offering, you can hire team members in any of the 187 countries they operate in. Their platform & services go well beyond payroll, helping with onboarding, managing, benefits, and compliance.
Since they own a business entity in almost every country on earth, they can let you hire talent globally within a matter of days. Naturally, all this is done without you having to handle any legal, tax, or HR burdens yourself.
Zeeto
Pricing details are not provided by Globalization Partners. The best way forward is to request a demo and they’ll work with you to provide a custom quote.
Best For
Companies that want an employer of record provider with a platform to manage it all.
TFY
TFY packs features for applicant tracking, freelance management, payroll and more in a single platform. Not only that, but the platform supports diversity hiring, and can support you in planning and running a host of Corporate Social Responsibility (CSR) initiatives.
PROS
- TFY offers features for applicant tracking, freelance management, payroll and more in a single platform.
- TFY’s platform supports diversity hiring, and can support you in planning and running a host of Corporate Social Responsibility (CSR) initiatives.
- TFY has simple and transparent pricing which is something software users always appreciate.
CONS
- According to user feedback, TFY’s UI feels outdated and takes some time to get used to.
- Interested users cannot create trial accounts on their own from TFY’s website.
- TFY doesn’t have prebuilt integration modules, but they do offer API access to connect with tools in your tech stack.
- TFY currently doesn’t have a mobile app.
TFY’s global payroll solution allows you to transfer payouts to your employees and independent contractors in over 150+ countries and over 130 currencies, including more than 20 cryptocurrencies. You won’t need to collect and store bank account details or monitor foreign currency exposures. Simply define the frequency for recurring payments, number of payouts, etc. All of these capabilities and more can be combined with TFY’s Employer of Record services and Vendor Management System, so you can hire seamlessly beyond your borders and have better visibility over your external workforce.
TFY serves companies of different industries. Some of their most notable customers are Zigurat Business School, Exante, Kissflow, WeWork, Revolut, B-caused, and RedHat.
TFY price their ATS and FMS separately as follows:
- FMS: $5 per team member, billed monthly. This includes everything you need to manage and pay remote teams, consultants, and freelancers.
- ATS: $50 per posted job. This plan provides insights into candidates’ skills and salary expectations.
Best For
TFY is best suited for companies looking to hire and manage over 100 freelancers. The platform would also make a good addition to companies looking to implement CSR activities.
WorkDay
Workday is a popular HR software that includes payroll functionality. It focuses on enterprise needs and offers international payroll solutions for the US, Canada, the UK, and France.
PROS
- Ability to make changes and update payroll in real time.
- Customizable automated calculation engine streamlines payroll processing.
- Provides audits for compliance and payroll accuracy.
- Employee self-service to pay slips, W-2s, W-4s, and payment elections.
- Offers pay on-demand.
- Automatic tax updates
- Support mergers and acquisitions (M&A).
- Accessible customer support from the community, live chat, and telephone.
- Compatible with 300 HR systems such as ERP/GL, CRM, HR, and PSA.
- Configurable dashboard with AI and ML-driven insights.
- Ability to maintain real-time alignment of budgets and workforce plans.
- SOC 2 Type 2 compliance.
CONS
- Enterprise-focus; not a great choice for smaller businesses.
- Time-consuming and complicated setup process.
- No free trial. Undisclosed pricing.
- Mobile app lacks stability and user-friendliness.
- Undisclosed pricing.
- No free trial for its talent management software.
- Time-consuming implementation period (average 4.5 months).
- Challenge navigating for first-time users may require training.
- Issues with logging in were reported by users.
Workday's payroll software is scalable, highly secure, and great for enterprise companies. However, user reviews on the mobile app and implementation vary. It covers the US, Canada, the UK, and France and integrates with Activpayroll for 140+ country coverage.
Workday's payroll software excels on the tech front. It ensures accurate deductions and tax information through automatic updates and audits. It offers flexibility with multiple pay cycles based on employee groups and supports workers' financial well-being by providing a pay-on-demand option for accessing accumulated wages before the scheduled payday.
Workday's mobile app offers customizable dashboards with access to payslips, time off, and time tracking. However, user feedback suggests that it lacks ease of use, with reports of app glitches and logging-in issues.
While Workday boasts impressive scalability and valuable HR features for large enterprises and global companies, it may not be ideal if your company is looking for a simple setup and a super-intuitive mobile app.
Quicken Loans, AstraZeneca, Target, Dell, Bank of America.
The exact pricing details of Workday are undisclosed. Contact Workday’s team for a quote.
Best For
Large enterprises looking for a global payroll solution within a broader HCM suite.
My organization uses Workday for everything within Talent Management. More specifically, we use Workday for compensation, advanced compensation, recruiting, onboarding, compliance, training, analytics, etc.
We also have custom processes built into the system for progressive discipline that we've created from scratch. Workday is used daily by most of our staff and our HR team is in Workday to support almost everything we do during the day. It truly is a one-stop shop for everything.
1. Ability to have all of our offerings under one system.
2. The user experience is easy to navigate and has a modern feel and approach.
3. The system allows for a ton of customization by the customer meaning a lot of configuration can be done without the support of Workday directly to meet your needs.
Our organization purchased Workday to bring all of our previous systems under one offering. We had four different vendors supporting our HR needs at the time and we were able to bring everything under Workday.
Our previous HRIS was lacking updates that supported our team's needs and we wanted to offer an experience to employees internally that was easy to navigate and understand. Workday is easy to use, understand, and looks and feels very modern.
Also, they allow us to have payroll, recruiting, onboarding, performance, training/compliance, etc. all under one offering. Personally, I have used Workday since the fall of 2019.
1. Everything is tied to one system meaning you are glued to the ecosystem making it hard to make a switch in the future, if needed.
2. The amount of customization available is a ton making it at times hard to understand for more complex business processes.
3. The cost. It's an amazing system, but the cost is steep if that is a concern.
Overall, it's different in that everything is able to be under one offering. It's amazing to have the ability to customize your Workday for what the organization needs and it's great that they only release two updates a year for system updates.
The updates are also pushed out to all Workday customers at the same time so everything is working off the same version, unlike other offerings we've used. The ease of use and modern feel is also much different from many of its competitors. It's a great offering!
Overall, when looking at an HRIS like Workday, it's important to consider whether you are looking for a system that can house all your offerings under one system - truly, that's the benefit of getting Workday.
If your organization does not want/need that, you could find alternative options that likely could offer a great experience at a more reasonable cost.
However, for our organization, this was something we needed, and have found great value in offering to create a better experience with more efficient processes.
Workday releases two system updates a year and they are pushed out to every customer at the same time. We have seen so many good updates since we implemented Workday and many of their updates come directly from Workday Community where Workday customers give feedback and ideas for recommended system changes.
For example, there have been significant improvements to the recruiting offerings in managing requisitions, which has really helped our team more efficiently manage requisitions. Another example is when Workday added COVID vaccine tracking very quickly to meet the needs of customers when the government was requiring employers to track vaccinations.
This was outside of the normal twice-a-year releases, which was really appreciated so we were in compliance. They care, listen, and make updates when needed to support their customers.
From my experience, Workday is great for larger organizations because it's such a robust offering. If you are a smaller organization, it may be a bit overwhelming and the expense may be hard to justify.
However, if you are looking for an offering that can be a one-stop shop for everything, offer an easy to navigate experience for staff, and the ability to customize the system for your needs, Workday is great!
If you are a smaller organization, concerned about budget, or if you are not concerned about bringing everything under one offering, Workday may not be a great choice.
Oyster
Among several global payrolls in the market, Oyster stands out for being flexible enough to manage payroll in over 120 currencies while integrating features for expense reimbursement, time-off request, and bonuses.
PROS
- Oyster’s global payroll supports salary payouts in over 120 currencies.
- You can sign up to explore the platform, help docs, and HR tools, only paying when you hire someone.
- Provides transparent flat rates for employees and contractors and a tool that can quickly calculate potential costs and risks of hiring in a new country.
- Whether your employees are in one country or 100, Oyster can accommodate them accordingly, and this is a feature few platforms can boast of.
- Helpful customer support and help center. Thorough guidance on global employment (available for only the highest-priced plan, though).
- Intuitive: The platform is easy to navigate and makes logical sense.
- competitively priced: The flat rate for employees and contractors makes cost comparisons simple, and is competitive in the market.
- Targeted for a remote workforce: Whether your employees are in one country or 100, Oyster can accommodate them accordingly, and this is a feature few platforms can boast.
CONS
- There may be some salary delays in transfers.
- Only supports bank transfers for payments.
- Monthly pricing varies by where the employees are based.
- Slight delays in processing times for payments in the local currency are somewhat common.
- Immediate communication via phone support is not an option, but they do offer live support via Zoom when necessary.
- An initial security deposit is necessary to begin the engagement and is refundable.
- The platform lacks native time-tracking functionality and provides only an in-app tool for managing time off.
- If you’re looking to co-employ your employees and partially outsource HR responsibilities, Oyster isn’t for you. They are more akin to employer of record services (EOR) than a Professional Employer Organizations (PEO).
Among several options in the space, Oyster is flexible enough to manage payroll in multiple currencies and locations globally and has integrated features for expense reimbursement for traveling employees. Running payroll on Oyster was easy. We could process both employee and contractor payroll in one platform and choose the preferred currency and payroll frequency (monthly/bimonthly), depending on country payroll regulations. We’re also happy with its simplicity in managing tax withholding and accounting. While Oyster did well in ensuring employees working under different currencies are paid correctly and compliantly, we wished to see more withdrawal options in the platform rather than just bank transfers.
Oyster is one of a few vendors that can accommodate teams hiring people in over 180 countries. The platform also provides a self-service portal where employees can request time off and reimbursements. We liked that each time one submitted a request, we instantly saw it in Oyster’s admin dashboard, highlighted under the Requiring Attention section. Related tools like the cost calculator, global recruitment guides, and invoice management were placed right in the dashboard, making it easier to access and get the needed help.
Some of Oyster's customers are Juno, Demodesk, Chili Piper, Quora, Wagestream, Impala, and Grover.
Oyster has three pricing plans:
- Contractor: It starts at $29 per contractor per month and includes hiring contractors in 180+ countries, drafting, editing, signing compliant contracts, processing invoices, and paying contractors in 120+ currencies.
- Employee: The plan starts at $499 per employee per month when billed annually and includes features for hiring full-timers in 120+ countries with compliance and liability coverage, automation, IP protection, global payroll, expenses, allowances, and bonuses in 120+ countries.
- Scale: The plan has custom pricing and includes a discounted rate, dedicated client service, and support to navigate global employment and bulk hiring.
- Local benefits plans are provided as add-ons for Employee and Scale plans.
- You can create an account, explore the platform, and access Oyster’s HR tools and resources for free. You’ll only pay once you’ve engaged a team member.
- Discounts are available for nonprofits and businesses hiring refugees.
Best For
Distributed teams whose current and future contractors, employees, or both are based in countries listed on Oyster’s 120+ country coverage. Nonprofits and businesses looking to hire refugees in countries where Oyster has local entities would also benefit from the platform’s special discounts.
I’ve used Oyster during a one-time project with a client who was developing a nearshore consulting practice in South America. The tool was used to hire contractors abroad (Brazil).
- Great interface which creates a very positive experience while using the tool.
- Easy to stay compliant to local labor laws.
- Easy onboarding process for new clients.
I helped a client to develop a nearshore consulting practice in South America.
Oyster definitely makes it easy to hire and manage employees abroad, which can be a challenging task due to labor laws intricacies. I have only used the tool during this project’s duration (1 month), but my experience was very positive.
- I wish there were more subscription package options available.
- The cost can be a barrier for startups.
- The resource tools are very helpful, however I’ve identified a couple of inaccuracies in some of the country guides.
Easy and efficient onboarding process.
Ensure that your internal processes are well defined, so you can meet the monthly deadlines to share your company’s information.
Analyze if the solution fits your needs, I’d highly recommend using the free trial that they offer.
Evolution and adaptability are definitely key characteristics when offering a global payroll solution, given the challenge that is to ensure compliance to the labor law complexities of some countries.
Companies that are starting to test or implement a workforce globalization project.
Super large companies that already have HR functions around the world.
Atlas
Atlas is an EOR and HR services-focused global payroll provider. They work well for teams of all sizes and offer a good combination of in-house expertise and a functional tech platform.
PROS
- Hire people through direct EOR entities in 160+ countries.
- They are a services-focused company with the tech to back it. For example, with the help of a locally-versed expert to guide you through the process, you can onboard employees and process their payroll in any of the 160+ countries they cover – and it can all be done online.
- Strong focus on compliance: regulations, taxes, local labor laws, etc.
- Atlas has legal entities in over 160 countries. They’ll help you take care of employee onboarding and payroll processing in any of those countries, eliminating the need to engage any local service providers.
- The platform simplifies how you hire, manage and pay employees and contractors abroad, without needing to set up an operation where they are located.
- Atlas helps you stay compliant with local labor laws and frees you from employer liability.
CONS
- Some users noted communication with support can be tricky. An individual expert (or one representing a small team) may be involved in addressing compliance issues specific to a geographic region. Though this has been reported to slow the process, our reviews suggest ongoing improvements.
- No native integrations, but they do have API
- Atlas currently doesn’t offer global managed payroll for non-employer of record (EoR) clients; so if your company doesn't need Atlas to take on from you as EoR, but need to use Atlas' global payroll services, you can't do so at this time. Do note though that the team at Atlas is planning to offer this service next year.
- Atlas currently has limited prebuilt integration modules but they do offer API access for users to plug in third-party tools.
Atlas is a comprehensive global payroll and direct employer of record (EOR) solution that empowers businesses to hire and compensate talent across the globe effortlessly. We’ve seen a demo of Atlas and tried the tool, finding them a solid company to entrust with your legal employer responsibilities.
What does this mean? We found that Atlas can dependably manage most of the operations aspects of the employee life cycle, for several employees, in several countries, from a single platform.
Atlas is used by over a thousand companies, including Toyota, CACI, Bath & Body Works, Coupa, PAE, and Namely.
- Essential: For $99 per month, this plan encompasses features and services that help users navigate the labor & employment laws in over 160 countries (+50 US States), manage employee lifecycle, compliance information between countries, be compliant with their accounting for travel and business expenses, receive personalized notifications, as well as have moderate access to expert insights and HR templates (which are priced separately).
- Premium: For $149 per month, this plan packs everything in the Essentials plan, plus compliance audit interactive checks, people analytics and planning features as well as dedicated account management.
- Enterprise: The pricing of this plan varies according to the number of purchased licenses and customer needs. You can reach out to Atlas’ Sales team for a custom price quote.
Add-ons:
- Contractor Pay: Starting at $49 per contractor per month
- Employer of Record: $595 per employee per month
- Visa & Mobility Sponsorship: Starting at $2,500 per visa
Best For
Companies of all sizes would find an ally in Atlas, but it’s especially good for those looking for a service-oriented offering rather than a DIY, employee-driven, self-service platform.
Why Use Global Payroll Software
Multi-country payroll software 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, since there are a myriad of solutions for that (some of them used by international payroll companies), but about being able to run payroll in multiple countries as if you had a registered company in each of the nations that at least one of your employees 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 software takes 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 a global payroll tool 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, to put it that way, 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 software vendor, these can include social security, health insurance, retirement funds, disability, and more. It also means that taxes are handled for them using the same tool. This is what global payroll software vendors mean when they tout full compliance.
Key Considerations & Pitfalls of Multi-Country Payroll
There are just certain considerations that you need to have before assuming that the right international payroll solution will do the heavy lifting for you, make sure your people are paid on time, and present everything in a user-friendly way.
- Knowing local laws: Just because a software company/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 or HR professional, you should know which laws and tax regulations you must adhere to in each country where you’ll pay someone. This not only helps with making sure that you’re staying compliant through the tool. It also aids when creating a budget, deciding whether to hire someone, shifting from contractor status to full-time, etc.
Note: Most of the top vendors put together resources to educate their user base on this. For example, Globalization Partners’ Globalpedia, Papaya Global’s super-detailed CountryPedia, Remote’s Country Explorer, and Deel’s Global Hiring Guide. - Know your costs: Fees for some of these international payroll companies 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. When choosing a global payroll solution, you should look towards those that do the most automation and outsourcing, freeing 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.
Pricing: What Global Payroll Solutions Cost
Most multinational payroll providers charge a fee per full-time employee and a smaller fee for contractors. While not every vendor discloses its initial pricing scheme online, since many will provide a custom quote upon requesting a demo, we’ve put together the following chart for your convenience:
Note: All figures are in USD.
Worried about the cost of international payroll processing? Check out our eBook on how to get the best possible pricing when buying HR tech.
Key Components of Global Payroll Software
When we speak about global payroll, it means much more than paying people internationally, likely with a money transfer company, and using a different system to manage and onboard them. In the full sense of the term, global payroll should let you do all this while offering the following services or payroll models:
- Global employment services: This is when you don’t own a business entity where your remote employees live, so you can set up a legal entity in the country or use employer of record companies to employ workers on your behalf. This is essential if you intend to hire people full-time in a country and don’t plan on opening a new branch where they live. Precisely because of that, it’s an excellent way to go if you plan on hiring as little as one person or a bigger team.
Through this model, you'll get access to a team of payroll experts who are well-versed in the local regulations when hiring international employees. A thing to note here is that many companies in the global payroll space don't own the EOR entities they use but work with local firms in each country and aggregate their services in a software tool that presents it all as a streamlined version for you. While this can certainly work, we've been seeing more companies own as many EOR providers as they can (or only use the ones they own) in order to reduce risks and simplify payroll operations for everyone. - Contractor payment services: This type of service is suitable when one side prefers contractor status as opposed to full-time employment. Essentially, this means that the worker acts more as a service provider and is legally a self-employed person. An international payroll company should also offer this type of service, with a key component being the assurance of full legal compliance.
In other words, a global payroll provider (or contractor management tool, in this case) helps manage payments to an international contractor and ensures that all the local legal requirements of working with said worker are met and avoid non-compliance. If you plan to hire people overseas solely on this model, do check out our pick of the top freelance management systems. - Localized payroll services: Then we have the case of a company with a legal entity in a country that require a local payroll solution. Naturally, most global payroll providers can also help with this since they don’t need to employ the workers for you to process payroll for them. In that case, they can handle payroll and benefits just like any local payroll provider would. At the same time, you are the legal employer of your people and thus responsible for the legal obligations that stem from that relationship.
As you probably imagine, multi-country payroll partners can offer a mix and match of these services, letting you choose different methods for different countries depending on what’s more comfortable and efficient for you. Suppose you're unsure whether you will stick with hiring people overseas on a contractor status or eventually move into an EOR or PEO model. In that case, we'd recommend looking at tools that offer a good mix of both.
One way in which this software category has evolved is by having more players in the space that offer both models instead of focusing exclusively on one.
The same goes for the number of capabilities an international payroll provider can offer. Some of these cloud-based tools now also include a fully working HRMS, a benefits administration suite, or even an IT management product, in the case of Rippling.
Demo Questions: What To Ask To International Payroll Companies
As with any software purchase, once you select 2-3 options for your global payroll provider, you should try each of them, likely through a demo and maybe even by doing a free trial. With both scenarios, it’s a good idea to step into the process with a list of the critical questions you need to answer.
To put this list together, you should consult each stakeholder within your team, including remote employees and contractors overseas. This list should reflect your unique business needs when it comes to employing people in different countries, but we’ve put together a basic list to get you started:
- Which countries do we need payroll in, or do we plan on needing payroll in, and in which of those do we need the full service, such as EOR?
- What kind of benefits would I like to offer to my global workforce?
- What are the key features I want to try out and validate?
- What kind of workflows are possible and maybe automated?
- What kind of tax regulations do we need to be concerned with if we hire in X or Y country?
- How will this solution fit into the rest of my tech stack and therefore what integrations do I need?
- How will others in the organization use this solution?
- How can this tool improve the experience of our workers?
- What are the things that would make me or my coworkers nervous about switching our current processes to this platform?
- How is employee data kept safe if trusted to this vendor?
- What conclusions can I start to make about the quality of customer support? Is there a help center? Are the support articles clear and easy to read?
- How will this solution fit our current plans for global expansion?
Alternatives to Global Payroll Software
We’ll now expand into one of the points we touched upon above— what are your alternatives if you decide that global payroll software is not the way to go for you just yet? Mainly, these are the two following:
- Payroll services: Most of the vendors we mentioned offer a combination of payroll services and a platform to manage and keep track of them. But of course, you could also opt for partnering with a company and letting them take care of it themselves. This requires you to get more familiar with each kind of payroll service and the fees they charge. It will also require much more direct communication with those payroll professionals.
- Money transfer companies: The other option is to just solve the issue of an international money transfer. Suppose your contractors overseas are okay with handling taxes & benefits themselves. In that case, this can be a less costly and time-consuming option, particularly helpful while you figure out what to do in the long term. There are many ways to pay people internationally these days, but we’ve put together some of the more convenient and trustworthy ones:
Global Payroll FAQs
What is Global Payroll?
The term “global payroll” refers to the compensation that a company needs to make to its foreign employees, independent contractors, and freelancers. Typically handled by the HR or finance departments, it includes salaries, tax withholdings, invoicing, benefits, bonuses, PTO, overtime, commissions, and of course, international bank transfers.
What is an EOR?
EOR stands for ‘Employer of Record’. It is an essential component of an internationally compliant payroll since it’s what most providers use to be the legal employer of a worker in their country. Through this practice, a company doesn’t need to set up a legal entity in that country to stay compliant with the local labor laws.
What is a PEO?
Essentially, a PEO (Professional Employer Organization) is a company that offers a wider range of HR services to other businesses, including payroll operations, of course, but also benefits administration, HR consulting, hiring, onboarding, and even training. This can be quite helpful for companies that don't have a big internal HR team, as it allows them to stay compliant while focusing on other responsibilities for their in-house concerns.
So, PEO goes way beyond employing people on your behalf to ensure compliance but goes into the territory of absorbing more of your HR tasks.
Those last company roundups do include most vendors from this list, but also some new ones that focus specifically on each employment method. If, on the other hand, you're ready to do a vendor comparison, consider starting with our side-by-side overview of Deel vs. Remote.
Last Advice on Buying a Global Payroll Solution
Setting up an international payroll properly is quite a project. It’s not only about setting up direct deposits to people and staying within the boundaries of the law but investing in creating the best possible experience for them. If your workers feel that they’re properly taken care of, they will feel enabled to perform their best and stick with you in the long run.
Because of this, it is essential that you choose the provider that is right for your business needs. Take your time, ask a lot of questions, figure out what the right mix is for you and your team, and you’re likely to gain an edge over your competitors while saving time, cutting costs, and making your employees happier and more productive.
Lastly, to stay organized during the demoing process, use our HR and Payroll software buyer organizer.
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