Making sure your workers, both foreign and domestic, get paid correctly and in a timely manner is a lot more complicated than just handing them their salary at the end of the month. The payroll processes of today’s complex international business world can be a byzantine and hectic process, made even more complicated when your business employs people across borders!
This complexity is the main reason why 75% of today’s businesses are engaging payroll outsourcing services to help them manage this important procedure. By outsourcing the process your business can have the burden of calculating payroll, making tax filings, and all the other intricate payroll-related matters lifted from your shoulders to be handled easily and efficiently by a dedicated team of payroll experts!
So, what does payroll outsourcing entail? It’s the practice of using an independent external service provider to take care of all the payroll functions for your business. A payroll service provider can make sure that all of the payroll funds are distributed punctually in accordance with your employee contracts, that payments are made with accuracy and in compliance with all local laws and business codes, and that all the necessary employee information and critical documentation is managed in a secure and safe manner.
Let’s examine just some of the advantages of payroll outsourcing:
Saves On Costs – It’s much less expensive to hire a payroll service than it is to run an in-house payroll department. In the case of a business that maintains international operations, they can save money by using one global payroll provider instead of having to hire payroll administrators and legal advisors in multiple countries, which can become very costly. Payroll outsourcing is very cost-effective and saves you money.
Reduces Non-Compliance Risks – It’s vital that you ensure your business is operating in compliance with employee payroll laws both domestically and internationally. Payroll laws can vary greatly by country, and are quite often different under local governments like states, counties, and their equivalents. The local payroll laws will dictate the ways in which employees can receive their compensation, such as in cash, cheque, or bank transfer, the time frame in which you are required to pay them, and all of the necessary payroll deductions like health insurance and taxes.
Consider a scenario in which your in-house payroll team isn’t familiar with the local labour classification laws in a foreign country you are doing business in- it would put you at risk of making a misclassification error that could lead to fines and penalties costing hundreds of thousands of dollars! When you are working with a global payroll provider with experience in the complexities of international payroll laws, you greatly reduce such risks!
When your business outsources all of its payroll responsibilities to an experienced service provider that uses local specialists in the countries you are involved with, you can rest easy and gain the peace of mind and reassurance that you are complying with all the pertinent international payroll and employment laws.
A payroll outsourcing service can make your life a lot easier, giving you and your main staff more time to focus on growing your business!
