In the midst of a global talent crunch, it’s not unusual to have to look beyond your own borders to find the kind of people that will drive your business forward.
The good thing is that the rise of remote working has made assembling a top team of global talent more accessible than ever. But, while hiring talent from overseas is a breeze in comparison to 20 years ago, numerous payroll challenges still present themselves.
It’s easy to make costly payroll mistakes when you’re managing an ever-growing workforce—especially when you’re pinging payments all over the globe.
In this article, we’ll go through everything you need to know about payroll problems and solutions. More to the point, we’ll explore challenges in payroll processing and tell you what you can do to ensure international success — including contributions from experts including Global Payroll & People Leader Ian Giles and Multiplier’s Michael Nierstedt, Payroll Product Director.
Major payroll challenges in 2025
Did you know? The global payroll services market is projected to reach $73.37 billion in 2025. That’s testament to factors like the increased globalization of businesses and hot competition for global talent.
Paying international employees is starting to become common practice for businesses across sectors. But, as we mentioned: nobody said it was easy. Here are the main global payroll challenges you should know when it comes to paying employees in 2025.
Employee confidentiality
One of the biggest challenges of managing payroll—whether locally or globally—is safeguarding employee data. In an era where cyber threats are becoming more sophisticated, protecting sensitive payroll information is non-negotiable. At the local level, compliance with data protection laws like GDPR (for the EU) or CCPA (for California) is critical to avoid costly penalties and reputational damage. However, when expanding operations internationally, these challenges become exponentially more complex.
Each country has its own set of data privacy regulations, and non-compliance—intentional or otherwise—can lead to hefty fines and legal repercussions across multiple jurisdictions. A global payroll system must not only adhere to international frameworks but also remain agile enough to comply with region-specific requirements, such as Brazil’s LGPD or Singapore’s PDPA. Beyond compliance, it’s essential that your payroll system conducts rigorous, ongoing security checks to prevent breaches—no ifs, no buts, no compromises.
Without these safeguards in place, businesses risk exposing sensitive employee data, jeopardizing trust, and potentially facing severe consequences on a global scale.
Lack of integrated software
Lack of integration is another of the major payroll challenges for companies. As Ian Giles explains, the demand for integration exists on both the employee and payroll side. “Teams need to manage employee information in real-time to enhance efficiency, reporting, and compliance,” he explains, “Meanwhile employees expect streamlined processes when accessing pay slips, benefits, and PTO requests.”
Often, payroll software can’t keep up with modern payroll demands, as Michael Nierstedt explains. “Solutions are often built on outdated software,” he says, “They can’t deliver all the features you need, but they come with lock periods that make it hard to integrate with other solutions.” How can you integrate with timesheets if data can’t come in after the lock period, for example?
In 2025, as more businesses expand across borders, increasingly complex payroll challenges will force companies to make a critical decision: continue struggling with outdated payroll systems that can’t keep pace with global demands or transition to an integration-first approach that centralizes data, automates compliance, and ensures seamless payroll management worldwide.
Payroll processing errors
Payroll challenges don’t stop there. Errors are more common than you think, with the average business making 15 errors per payroll period. Naturally, payroll issues only grow when managing payroll on a global scale.
The more manual your processes, the higher the risk of costly mistakes. That’s why our best piece of payroll advice is this: automate your payroll processes with a global payroll platform that’s designed to reduce manual work, make paying employees across the world easy, and keep you compliant across multiple regions.
While following payroll best practices can help minimize global payroll mistakes, leveraging automated payroll features eliminates guesswork and significantly reduces the risk of human error.
Global versus local
As businesses grow, they must decide whether to stick with a network of local or regional payment systems or consolidate payroll into a unified, global platform.
While some decision-makers prefer maintaining local systems to address region-specific nuances, others recognize the value of centralizing payroll into one integrated platform. Consolidating payroll processes ensures consistency, reduces administrative burden, and provides a comprehensive, real-time view of payroll across regions.
However, striking the right balance between regional flexibility and global efficiency is key. Opting for a solution that accommodates both will allow businesses to scale smoothly while maintaining compliance and operational control.
Historically, many businesses have relied on fragmented, manual approaches to managing international payroll, often setting up individual regional entities—an approach that drains internal resources and increases costs. Establishing foreign payroll entities in multiple regions is not only labor-intensive but also introduces a host of additional costs, including HRMS licenses, compliance overheads, and administrative expenses.
To drive efficiency and reduce these unnecessary costs, a centralized global payroll system is essential. It minimizes manual processes, automates compliance, and provides a streamlined way to manage payroll across multiple countries—empowering businesses to grow without being bogged down by logistical headaches.
Reducing risks in global payroll
Considering the innate payroll challenges that come with managing a global workforce, investing in a tech-driven solution can certainly help consolidate processes and reduce errors. But while choosing the right global payroll platform is crucial, minimizing payroll risks involves more than just picking the right technology. A well-rounded approach that includes process optimization, compliance management, and ongoing workforce education can make all the difference.
Here’s a deeper look at how to reduce global payroll risks beyond tech adoption:
Compliance as a continuous process
Staying compliant with international payroll regulations isn’t a “set and forget” task. As labor laws, tax regulations, and data privacy mandates (such as GDPR and CCPA) evolve, businesses need to establish a system of ongoing compliance audits and updates. This reduces the likelihood of errors, fines, and reputational damage.
Standardizing processes
Fragmented payroll processes across regions can lead to inconsistencies and inefficiencies. Standardizing internal workflows—such as setting uniform payroll cycles, defining clear approval chains, and ensuring consistent data entry practices—helps minimize discrepancies, regardless of where employees are located.
Training and upskilling HR teams
Payroll errors often stem from manual mistakes or knowledge gaps. Empowering your HR and payroll teams with ongoing training in international labor laws, compliance requirements, and technology updates can prevent costly oversights. In fact, well-trained teams are better equipped to spot and address payroll discrepancies before they escalate.
Prioritizing vendor due diligence
When choosing a global payroll provider, don’t just focus on features. Assess the vendor’s track record, security protocols, and scalability. A provider that offers continuous system upgrades, real-time data encryption, and multi-region support can better safeguard your sensitive payroll data.
Leveraging data
Global payroll data can provide powerful insights into workforce costs, compliance patterns, and operational inefficiencies. By using data analytics to identify trends and risks early, businesses can make informed decisions that prevent future payroll disruptions.
Choosing the right tech: A checklist for success
As remote work continues to reshape the global hiring landscape, building a streamlined, scalable payroll strategy is no longer optional—it’s essential for long-term success.
While technology plays a significant role, adopting a holistic approach that factors in compliance, process consistency, and team education ensures that your payroll operation remains resilient as you scale.
Still, when it comes to technology, selecting a global payroll solution that aligns with your organization’s growth and complexity is a key piece of the puzzle. After all, 75% of businesses that have implemented a global payroll solution report a reduction in payroll errors, and 68% note improved compliance with local regulations.
The ideal solution:
- Integrates with various payment methods (bank transfers, PayPal, Wise, etc.)
- Syncs with existing HR, accounting, and time-tracking platforms
- Scales effortlessly as your business expands across regions
- Offers robust security, encryption, and compliance management
- Handles seamless currency conversions worldwide
- Provides accessible payroll analytics and expense tracking
- Delivers reliable customer support and expert guidance
Get the Multiplier advantage
For companies looking for a comprehensive way of overcoming payroll challenges, Multiplier’s Global Payroll offers a unified solution that ensures compliance, accuracy, and efficiency across all regions.
Multiplier processes payroll in 100+ currencies with 99.95% accuracy in every cycle. No need to switch between multiple vendors—just one reliable, efficient solution that offers real-time visibility into every stage of the payroll process. Access data-driven insights, including headcount, gross-to-net details, and cost center reports.
By consolidating payroll under one platform, you reduce risks and administrative burdens while also gaining complete control and visibility over your workforce’s compensation. Book a demo today.
