Nothing can beat a distributed team when it comes to diversity and flexibility. As a result, business organizations have been hiring their global workforce to give them an edge over the competition. It’s the best way to jumpstart international expansion.
However, when making long-term plans to expand globally, it’s essential to keep your remote staff engaged without increasing the complexity of doing business locally. Here is a quick how-to to help you make the payroll process easy for your company.
Do-it-yourself Process For Your Global Staff
The payroll process isn’t just depositing money to your employee’s account. There are more things to consider like withholding, submitting, and depositing different taxes. You will also deposit for social contributions and health insurance mandated by law.
There are many options for paying your international team. However, they can be expensive in the long run. For example, you can wire the money through the bank. Keep in mind that there’s a $20 to $40 wiring fee for every transaction. If you add it up, the wiring cost is like wasting thousands of dollars every month or every year.
Other companies use freelancing platforms to pay their remote teams. However, these platforms have a large percentage cut somewhere around 10% to 20% based on earnings.
Meanwhile, successful organizations hire payroll service providers to facilitate their HR duties. These providers offer cost-effective solutions with their local expertise regarding payroll and taxes. Hence, your company will always be in full compliance with labor regulations. It also ensures that your remote employees get what they deserve on benefits and perks.
How to Deal with Taxes?
There are different tax laws in every country. You may be required to follow specific regulations. In most cases, your remote staff needs to register as self-employed to handle their taxation. Nonetheless, that’s an additional burden for them. There are also high tax rates for freelancers in certain countries that may affect their income.
By deploying a payroll service provider, they will handle everything to make it easier for your team. They will cover all local labor and tax regulations, including payroll, overtime, benefits, retirement, health insurance, paid leaves, etc.
A Simplified Approach: Hiring an International Payroll Service Provider
The process of payroll for your remote staff comes with legal circumstances. However, there are ways to simplify the process rather than doing it yourself. For example, hiring an international payroll service provider will save you time. It also prevents the possibility of losing thousands of dollars in tax penalties and fines.
Employ provides a top-notch international payroll solution for businesses. We collaborate with local HR specialists to meet all requirements for your payroll and taxes. Our global reach extends to countries in America, Asia, Europe, Australia, and Africa. Hence, have the peace of mind that your remote employees receive the finest healthcare, insurance, and social security benefits.
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.