In the past decade, globalization has had a massive impact on human resources. With teams scattered all over the globe, it has become increasingly difficult to manage payroll, compliance, and benefits in a way that is both efficient and effective. In this blog post, we will discuss the basics of global payroll and how a great payroll platform can help you manage contractors around the globe quickly and easily.
The basics of global payroll
How can you ensure compliance with local laws and regulations when paying workers around the world? This is where global payroll comes into play. Global payroll is the process of gathering all the payroll data from your diverse team across the world, getting this data standardized, and then sending out payments to everyone in their local currency in such a way that you remain compliant with local laws.
Fines, penalties, and litigations are the cost of not understanding or mitigating the risks associated with a global workforce. In many countries, the penalties and fines for not operating compliantly can be in the thousands and even lead to imprisonment.
The easiest way to handle global payroll is with an Employer of Record (EOR). An EOR has no employee minimum, assumes liabilities, serves as a legal employer, allows globalization, and can even provide workers comp. You may have heard of other similar solutions like PEO and AOR; here’s how you can tell these options apart based on what they mean for you.
With an EOR in place, you can be sure that your contractors are being paid on time and in compliance with all local laws and regulations. This will free up your HR team to focus on more strategic initiatives, rather than worrying if invoices have been paid in the right currency.
Why a global payroll platform is critical for global expansion
The most common and costly mistake organizations make is failing to realize that foreign markets operate differently from the U.S., a fact which can lead organizations into difficulty as they attempt global expansion. When a business expands globally, it’s important to consider whether to establish a subsidiary in another country or work with a preferred global payroll platform that’s an Employer of Record (EOR).
If you’re expanding your business into multiple countries, it can be exceptionally difficult to manage payroll in each country. This is where a global payroll platform comes in handy. A global payroll platform will help you standardize your data and make sure that everyone is being paid on time and compliant with local laws. To learn more, here are 3 Things You Need to Know About Taxes and Global Expansion.
You may be expanding globally to increase revenue, reduce costs, and diversify risk. Maybe you’re doing it to attract or retain top personnel. Either way, working with a global payroll platform will help you achieve these goals by making the expansion simple from a hiring and payment standpoint.
How a great payroll platform can help manage your contractors globally
Clearly, global payroll is no small endeavor. But a great payroll platform can make the process much simpler.
The benefits of using a global payroll platform include:
- The ability to manage compliance with ease even amidst changing regulations
- Flexibility to make payments based on your unique cash flow
- Visibility at your fingertips into consolidated data
These are just a few of the benefits you can expect from your global payroll platform. For more benefits, here are the 5 Key Elements of a Great Payroll Service Provider.
Keep in mind, global compliance isn’t just about avoiding getting in trouble with the law. Compliance is also about making your workers feel safe, valued, and cared for. That’s exactly what GreenLight created our global payroll platform for. We’re a global EOR ready to make sure your people are paid safely and on time as you hire abroad with ease.
Schedule a demo today so you can see how our platform integrates directly into your existing workflow.
