Emerging trends in work environments head towards hiring top talents from different international locations. The modern business landscape embraced this new normal and utilize the mobility of their workforce. A recent study shows that 87 percent of U.S. companies agree that they need international expansion for long-term growth. Moreover, 47 percent of U.S. companies expect profits from international business activities.
If you’re a business owner or an HR leader, you will agree that payroll is one of the hurdles to your global growth. Of course, there are plenty of payroll system providers today, but have you heard about International Payroll Services?
International Payroll Explained
Most businesses want to enter a new market where they can explore opportunities. Hence, they need to employ top talents from overseas to make it run right. However, there are different local payroll practices for every country that makes expansion complicated.
By definition, international payroll service is the process where a third-party provider administers the overall payroll responsibilities for your company. This type of Employer of Record service mitigates the risk of non-compliance to labor regulations and other mandatory procedures.
International Payroll Service is the light at the end of the tunnel. It is your gateway to the limitless market that you want to tap. It also makes your remote employees happy and secure.
Now, let us talk about the factors why do you need international payroll services.
It is Practical
You can save a lot by deploying this service rather than doing it on your own. It eliminates the challenges of international banking, the barriers of local taxation, and other regulatory duties.
The Philippines is one of the best countries for outsourcing. All employers are required to give a mandatory 13th-month pay to their staff before December 24th. Foreign companies earning in the country must also pay high-income tax rates on a progressive scale.
In Indonesia, payroll compliance for foreign companies includes individual income tax for employees, capital gains tax, social security costs, sales tax, payroll tax, withholding tax, and business tax.
In Vietnam, foreign companies need to comply with tax regulations such as individual income tax, value-added tax, social security costs, business tax, withholding tax, and permanent establishment concerns.
Given these scenarios, imagine how much you will save if you hire an international payroll service. Furthermore, you can allocate your time for other aspects of the business instead of doing payroll.
Efficiency Is The Key
Who wants a burned-out HR team? No company wants that! As you move towards your global expansion, the duties of your HR and accounting team will double up. Hence, additional daily work means more possibilities of error and wasted resources.
Now, imagine if you have an international payroll service at your side. These experts know the ins and outs of local regulations. Thus, they will free your team from exhausting tasks ahead of them. This service will also deliver an efficient process from implementation to reporting.
The Simpler The Better
Leonardo Da Vinci said that simplicity is the ultimate sophistication. The idea of simplicity here is making better choices to bring peace of mind and happiness. It may reflect in your outlook or the success of your organization. International payroll service gives you the chance to simplify the complicated process of entering the global market. Of course, it is not a one-size-fits-all service, but with modern technologies in a cloud-based platform, you can never go wrong with international payroll.
If you want to learn more about this kind of Employer Of Record Solution, you can contact us to cover more details.
Olivia Yu has decades of experience in the Human Resources industry. She’s the Regional Director for Asia Pacific of a famous international HR company. Olivia’s international experience inspires her to write articles about human resources and global staffing.