A global workforce is not just a passing trend, but has undoubtedly become the new normal. There is immense access to an exceptional global talent pool, and this is something that many businesses across the globe are tapping in to.
As your business expands globally, you’ll likely be hiring new staff in different countries across the globe. When it comes to international expansion, this inevitably comes hand in hand with international payroll.
What is international payroll processing?
International payroll refers to paying employees in various countries worldwide. These countries are situated beyond an organisation’s country of residence.
International payroll services involve payroll and payroll management for employees at offices located overseas. It also refers to independent contractors, freelancers and staff employed through agencies.
Many jurisdictions have very complex tax laws. Many jurisdictions seeking to attract a particular skill base may provide incentives such as greatly reduced tax rates for expertise. Other jurisdictions may incentivise by reducing taxes or increasing allowances for various types of contractors, whether by skill, by nationality or a period of time. Very often, there are multiple options of payroll schemes to choose from depending on your position. Expenses may or may not be permitted and statutory expenses such as mileage allowances may apply.
In general, the area of international payroll services is extremely diverse as there are numerous contracting jurisdictions across the globe, as well as several schemes applicable to each location depending on the contractor’s circumstances.
Difficulties of In-House Payroll Processing
Payroll is a notoriously complex and difficult administrative procedure that is also very time-consuming. For many businesses, this is one of the most complicated processes, where even a minor error can ruin the entire process. What’s more, if you are processing international employees, you will inevitably have to deal with different legal and financial systems, rules and laws.
When processing international payroll, employees have to be classified into various employment types, such as fulltime employees, part-time employees, freelancers, temp workers, contractors, interns and more. Each of these employees may be entitled to different benefits and compensation, depending on the laws in place for regional and national payroll.
Payroll also involves calculating attendance and leave. As an organisation grows beyond ten employees, it can become incredibly time-consuming and complex keeping track of days off, working hours and overtime, particularly if employees are working remotely and from various locations.
When processing payroll, it’s essential to classify each employee correctly, otherwise this could lead to a number of tax compliance issues. What’s more, you need to be aware of payroll laws, which are ever-changing, while navigating legal compliance can be tricky.
Benefits of Working with an International Payroll Company
Working with an international payroll company, such as Chesterfield, is a superb way to navigate the complexities that arise from processing payroll. This is a popular way to streamline internal processes, and reduce the administrative burdens that naturally arise as a result of processing international payroll in-house.
International payroll companies take care of every payroll element for you, including payment calculations, payment processing, reporting to the relevant tax authorities and more. These companies possess in-depth expertise, as well as knowledge of compliance with international laws and legal regulations.
When it comes to international payroll, it’s important to remember just how complex the process is. The international payroll landscape is ever-changing. Fortunately, this is exactly what payroll companies specialise in. Their job is to keep afloat of the latest international guidelines and legislation in a range of jurisdictions, and remain up-to-date with what data is needed, which rules apply and how to act within them.
They also provide individuals and businesses with a single, dedicated account manager who knows the ins and outs of your business and payroll systems. This avoids having to chase in-house payroll staff in different offices and time zones, and facilities the intricacies of the entire payroll process.
Finally, payroll companies use accurate, accountable systems to manage international and domestic payroll.
As you can see, outsourcing international payroll brings countless benefits that will make a positive impact to your organisation.
International Payroll with Chesterfield
At Chesterfield, we are experts in the field of international payroll. We have a dedicated team of professionals who are able to provide a personal domestic and expatriate payroll service in almost every country across the globe.
Often contracting staff may operate in several jurisdictions with the same tax year, and can seamlessly integrate payroll processes, no matter which country you require payroll for. Our payroll administrators have extensive knowledge of all local requirements, wherever you may be based.
We are incredibly proud of our state-of-the-art technology and infrastructure, which enable us to execute a consistently seamless and efficient service.
When you partner with Chesterfield, you benefit from a high level of regional legal knowledge, experience and expertise. Aside from processing payments, many other details are attended to, including generating payslips, sending notifications, filing reports with tax authorities and numerous other responsibilities that need implementing.
At Chesterfield, we possess a global portfolio of clients, and have helped each and every one of them to optimise their processes. By outsourcing your international payroll needs to Chesterfield, this ensures a streamlined payment process, month after month.
Contact Chesterfield to speak with one of our specialists about your international payroll needs.