Global Payroll Management Guide

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What is Global Payroll?

Global payroll refers to the process of calculating salaries, handling deductions pertaining to existing social taxes and managing bonuses and other benefits to evaluate net pay for employees working from different countries across the world.

Besides providing every employee with the corresponding net pay from time to time, you have to maintain payroll records and make payments to government agencies and insurance companies on behalf of your employees. This is usually done using the fixed sum of money you deduct from your employees’ earnings on legal grounds.

Problems in Global Payroll Management

Local payroll management for a group of people working from a single location is complex in itself. This is chiefly because of the tax and legal parameters that are to be taken into account while processing payroll for employees.

Now, can you imagine how tough it is to process payroll on a global scale for people from different countries each backed by a different set of rules and regulations?

In fact, managing global payroll is 3X times more difficult and confusing than handling local payroll.

Countries update their labor laws and tax-based rules and regulations without any warning. This can create havoc for business owners who manage remote teams worldwide. However, this is not the only problem in international global payroll processing and there is more to it.

Yes, payroll and tax rates pertaining to it not only differ from country to country but also from one person to the other based on various factors including designation, professional experience, salary structure and much more.

Plus, when payroll processing is done manually, the employer has to collect employee data including attendance records, paid day-offs, commissions and other benefits from multiple locations and consolidate it before beginning the actual process.

Given the scenario, it is not really a surprise that payroll carries such complexity.

As a business owner handling teams based in different countries, you need to be in line with the changing International payroll trends in this digital era.

This is precisely why you must start using an automated platform to manage payroll.

Payroll software automates the entire payroll process, allowing businesses to simplify and streamline payroll administration. It reduces paperwork and eliminates manual errors, allowing payroll managers to complete payroll processing as soon as possible.

Contractor payroll software comes in handy to digitize payroll for independent contractors otherwise known as freelancers. Payroll software for contractors saves a lot of time and manpower for companies that hire them to cater to their business needs at large.

Payroll Models

To maintain compliance, stay informed of legislative changes, and work effectively with the local culture, a company delivering an international payroll must have a local presence. In today’s global payroll landscape, there are two primary models.

As a business operating with international employees, it is mandatory for your company to keep track of compliance and dynamic legal infrastructures in the countries concerned. 

There are two payroll models for companies like yours to maintain compliance and stay posted about the changes in local laws. They include the wholly-owned model and the aggregate model.

When it comes to the wholly-owned model, businesses establish physical workplaces in corresponding countries to carry out operations in-house. 

On the other hand, the aggregate model is where companies develop partnerships with one or more local companies to take care of payroll. These third parties are chosen carefully by business owners to gain technological assistance for payroll processing on a unified platform.

While the wholly-owned model looks more controlled, it is actually not that. In fact, many business owners claim this international global payroll model to be less flexible and less transparent while only being an overspending option for them.

On the contrary, the aggregate payroll model offers flexibility and process transparency which, in turn, speaks for its accountability at large. 

Opting for the aggregate model is the best choice you could ever make to manage International payroll easily without compromising on safety standards.

Why Choose Multiplier?

Multiplier is a powerful technology platform that helps you to manage global payroll without any hassle. It makes way for your organization to onboard, manage and pay your international employees easily.

Multiplier makes it possible to automate International payroll processing on a single platform. Let it be any location across the world, we guarantee you 100% statutory compliance. 

As Multiplier stands for end-to-end global payroll automation, our platform comes in handy to prevent manual errors, achieve high precision and gain complete control over your international employee payroll.

Keeping track of changes in tax-related laws of different countries is one of the major problems faced by global payroll managers. Multiplier can solve it just like that by having a constant eye for such legal concerns and maintaining updated tax tables to process global payroll in an efficient way possible.

Generating payroll reports in-house is a herculean task especially when it comes to International payroll processing. You will have to generate region-wise payroll reports in the first place and then consolidate them to come up with end results.

You do not have to carry out this tiresome process with Multiplier to back you up in every step of the way.

Yes, you can get real-time insights on everything about your company’s global payroll when using a hi-tech payroll platform like Multiplier.

Our platform provides real-time intelligence for businesses like yours in order to help you monitor International payroll activities anywhere and anytime. Multiplier generates easy-to-use analytical reports to give you maximum transparency into your company’s global payroll.

In short, we take care of everything about payroll like you would if you only had all the time required for perfect International payroll processing. 

Your satisfaction is our top priority and to stand by our word, we carry out everything with your concern. Yes, monitor payroll anytime you want and approve it with just a click.

Your employees are an invaluable asset to your company. Pay your global teams on time with Multiplier and encourage them to showcase more productivity which, in turn, helps your business to grow exponentially.

We genuinely want you to achieve business growth and expand into more international markets in the days to come. And the best thing is, being a scalable payroll platform, Multiplier can cater to your global payroll requirements no matter the direction your company chooses to expand into.

Want to adapt Multiplier for your global payroll needs and simplify payroll management like never before? Talk to our consultants today.

Hiring and onboarding using Multiplier ensures you hire remote talent with locally compliant, fool-proof job contracts, offer emphatic benefits and disburse salaries accurately with absolutely nil errors in payrolls.

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