While attending the HR West conference this past week, I was reminded of a reoccurring theme with companies that are expanding their global footprint: they are struggling to understand the arrangements they have with their global employees, the regulations in each country, and how to determine requirements for new countries where they are planning to expand. This trend is not only unique to those I spoke with last week, but common across companies I speak with daily. So how do you pay employees and maintain compliance in each country?
“Oh, we just pay them as contractors” is another common response to that question, along with confusion on what the legalities are around paying employees as contractors. Most companies don’t understand that US entities are typically not allowed to pay an individual living in another country to perform work unless they have established some type of formal employment agreement. While the employee may be self-employed, each country has different regulations and may still require taxes and other statutory payments to be made. Companies can face fines and strict penalties for non-compliance with employee payroll and benefits.
Another common issue companies face is that establishing and maintaining a presence in each country you operate in can be cumbersome and costly. While each country has varying regulations, companies often find themselves out of compliance with employment agreements, payroll and tax payments, and no reporting to monitor what is being paid to employees in each country. Compliance with local labor laws, language requirements, and employee payroll and benefits is vital to success in any new or existing country you operate in.
Blue Marble has taken the challenge out of global payroll and operations, with a US based team and in-country experts in 145+ countries to ensure you maintain compliance, manage local labor and tax requirements, and pay your employees accurately and on time. Our easy-to-use technology provides secure, compliant payroll, and our aggregated customized reporting lets you view your payroll across all countries and currencies in real-time. Our global consulting services team helps set up business entities, create customized employee agreements and handbooks, and ensures compliance in any country you have employees.
If you’re thinking of expansion, you need to focus on your core business and hiring the right talent in each country. Let Blue Marble help you navigate global expansion and simplify your global operations! Click here to learn more