As many companies expand overseas, the costs associated with managing international employees can be prohibitive. Global payroll outsourcing is the fastest-growing segment of the human resource outsourcing market. Many organizations are utilizing global payroll companies to reduce costs and ensure compliance. There are many processes that can be outsourced, from HR services, tax and compliance, and processing global payroll. Companies that manage their own international payroll spend up to 20% more than companies who outsource the same functions. Time and attendance, onboarding new employees, benefits administration, and payroll are time consuming functions that can be outsourced effectively to save money.
Overseas Payroll
When looking to expand overseas, you need a partner who utilizes in-country experts to manage the compliance and financial changes within each country every year. Many companies find that if they try to manage overseas payroll and HR functions, many compliance issues arise from regulatory changes in each country that are constantly changing. Ensuring payroll benefits, mandatory tax payments audits are handled within the laws of each country is crucial to success in a new market.
Payroll often times is an area of non-compliance, as the laws and requirements in each country change each year. Over-paying taxes is common, with companies trying to ensure they pay the correct amount, but it can be difficult to recoup in a timely manner depending on the country of business. Under-paying taxes can cause major fines and indicate to local governments that you may have other areas of non-compliance in the company as well, causing unwanted attention and auditing. By utilizing a global payroll partner, you can avoid costly fines and audits and ensure compliance within each new country you expand into.
Sources:
ReportBuyer
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