Global payroll is challenging – especially when you have employees across multiple countries. One aspect of global payroll that gets more complex as you expand across countries is funding global payroll. Global money movement is complicated because of the banking regulations in each country and the currency conversions required to fund payroll in multiple currencies each month. Some countries require in-country bank accounts, while others will allow third party payments or US bank accounts to fund payroll. So how can you ensure compliance and simplify the process?
Understanding the regulations in each country is the starting point. Germany, China, and Bahrain are just a few of the countries that require a local bank account to fund payroll. If you don’t have a bank account set up in those countries, trust accounts must be set up so the in-country payroll partner can make payments in the local currency. In Australia, payroll funding is easier with several options to pay employees with or without local bank accounts. Depending on the country, payroll funding can impact your process and create additional steps for your team.
Ensuring compliance with local regulations is important so you don’t face fines or penalties. In Chile, if you don’t have a local bank account you must pay employee income tax and company taxes separately and in-country partners can only make employee net and social security payments. With nuanced laws in each country, it can be difficult to keep track of payroll funding regulations.
Blue Marble has simplified payroll funding across 150 countries and currencies with integrated money movement services. You can fund payroll in USD and settle in the local currency across multiple countries, with automated currency conversion and customized reporting in real-time. If you are struggling with multiple bank accounts, paying too much for currency conversion, or experiencing compliance issues, talk to our team about our global money movement services. Click here to learn more