Global payroll technology: how can a payroll solution transform your business?

If your business wants to expand globally, you need to understand the complexities of international payroll.

And, like everything else in the modern business world, understanding and adopting technology is key to this.

But what exactly is global payroll technology? And — more importantly — how can it help your business?

In this article, we’ll explain everything you need to know and help you choose the right solution for your organization — starting with the basics.

What is global payroll?

When you have employees in multiple countries, paying them is just one part of the process. You must also manage their taxes and comply with their country’s labor laws. All of these activities come under the umbrella of global payroll.

The main components of this process include:

• Calculating salaries

• Paying them on time

• Tracking and reporting payments

• Distributing pay slips

• Withholding and paying taxes

• Complying with local labor laws

What is global payroll technology?

Global payroll technology refers to the tools and software organizations use to manage payroll processes across borders.

It enables businesses to automate and standardize payroll operations, including payroll processing, tax compliance, time and attendance tracking, benefits administration, and reporting.

It also helps solve many of the key challenges of global payroll management, such as:

• Differences in (and the complexity of) local tax laws

• Social security requirements

• Employee misclassification risk

• Permanent establishment risk

• Labor law compliance requirements

• Currency exchange rates

4 global payroll technology trends to watch out for

Payroll tech is constantly evolving, especially with remote work creating a global talent pool. So, it’s crucial to keep up with the latest trends. Below are the four top trends in payroll technology across the globe.

1. Artificial intelligence and machine learning

Artificial intelligence (AI) and machine learning (ML) are all the rage in payroll since they go beyond simpler forms of task and process automation. These technologies can adapt and learn to a larger degree, helping with areas that change regularly, such as compliance.

AI and ML can also learn internal payroll processes and deadlines, sending alerts and notifications to the right people when it’s their turn to complete payroll tasks. Similarly, they can notify employees of various payroll responsibilities, such as clocking in and out.

Pairing AI chatbots with employee self-service (ESS) can help employees answer simple payroll and HR queries faster and more smoothly, too.

AI and ML won’t necessarily replace the entire payroll function, though. According to the Society of Human Resources Management, it will instead take on more of the rote tasks. That’s good news since it allows payroll and human resources teams to focus more on strategic initiatives in their functional areas.

2. ESS

ESS allows employees to handle nearly all their employment-related HR and payroll details themselves. For example, it can let them:

• Manage their work hours

• View their paychecks

• Update their direct deposit information

• Find answers to questions using the company knowledge base

This saves HR and payroll time on onboarding employees, updating information, and dealing with employee questions. And this improved employee experience leads to higher employee satisfaction.

ESS also gives employees a sense of autonomy and control over their information. They can check and make changes to their info without having to wait for an overloaded HR or payroll department to help.

3. Pay access

On-demand pay is a technology that lets employees tap into their paycheck when earned rather than wait until payday.

According to an ADP study, about three quarters of employees find on-demand pay access to be an important benefit. Plus, 82% of employers who didn’t offer it at the time of the study were considering it.

And it’s easy to see why.

With on-demand pay, employees get more flexibility and financial security while building on the sense of autonomy that other trends like ESS and AI offer. It’s easier for them to budget, pay their bills, and avoid going into debt or using their savings for urgent expenses.

All this reduces external stress, making employees happier and more productive. Plus, it makes you a more attractive employer, giving you a competitive edge in the global talent marketplace.

4. A more diverse mix of worker classifications

2021 saw an explosion of independent contracting, primarily due to pandemic-related shutdowns forcing people to seek alternative forms of work.

Employees got a taste of working for themselves and discovered they could start offering their skills as self-employed individuals, becoming business owners in the process. They got to set their own rates, hours, schedules, and more.

Meanwhile, employers realized that independent contractor arrangements could offer more employer-side flexibility while saving money. No need to manage benefits packages, handle tax withholding, or keep employees around for fixed work hours after they’ve completed their tasks for the day.

As of 2023, 64 million Americans have worked as freelancers at some point, representing 38% of the US workforce. That’s up 4 million from the previous year.

The rise in remote work, especially when it comes to global expansion, creates a few challenges, though:

• Compliance: Staying in line with local employment and payroll laws and regulations

• Employee classification: Avoiding the financial and legal consequences of misclassifying employees as contractors and vice versa

• Financial aspects: Paying different employees the right amounts based on their respective classifications and locations

What are the benefits of global payroll technology?

If your business is expanding across borders, then a reliable global payroll platform — like the one offered by Remote — can deliver a wealth of benefits.

Specifically, it enables you to:

Streamline your payroll processes

By reducing manual input, you can save time and ensure your employees receive accurate, timely compensation. This includes automating tasks such as data entry, salary calculation, deductions, taxes, and other payments.

Additionally, you can gain real-time access to financial data across all locations worldwide.

Moreover, global payroll systems allow you to integrate data from multiple systems (such as HR and finance), providing a comprehensive view of your payroll expenses.

This integration ensures that all payroll-related data is current and accurate, resulting in fewer discrepancies and less reworking.

Comply with employment and tax laws

Every country you hire in has different employee rights, taxation obligations, and social security contributions. Complying with all of these requirements can be daunting — for any organization.

Global payroll technology can automatically incorporate any changes in regulations, reducing the risk of penalties, legal disputes, and reputational damage resulting from non-compliance.

Bolster your data security

With a reliable global payroll platform — like the one built by Remote — you can securely track, manage, and store employee data, such as personal information and payroll expenses.

It helps ensure that sensitive information is not lost or compromised, reducing the risk of costly data breaches and cybersecurity threats.

Increase the efficiency and accuracy of your payroll

When you automate payroll processes, you can allocate resources more efficiently, saving significant time and cost. By avoiding manual inputs, you also reduce the likelihood of errors.

This technology can give you real-time visibility into your payroll expenses, enabling you to make informed decisions about budgeting and forecasting.

Additionally, it provides enhanced reporting capabilities, allowing you to generate customized reports and analyze your payroll data more effectively.

See also: How to save on your payroll expenses

Onboard (and offboard) more smoothly

Payroll technology automates tasks such as data entry, paperwork, and setting up direct deposits, which reduces the time and effort required for onboarding.

Similarly, when an employee leaves, global payroll systems automate the offboarding process, as well. This ensures that all payroll-related tasks — such as final paychecks and tax forms — are dealt with accurately and promptly.

Easily track PTO, attendance, and pay slips

Payroll technology allows you to track and manage employee time off more effectively, which ensures compliance with local labor laws.

Additionally, technology with ESS capabilities gives employees easy access to their pay slips, attendance data, PTO and leave, and other payroll information.

This reduces the need for manual inquiries while enhancing the employee experience.

How to set up global payroll

To set up payroll in multiple countries, there are two primary approaches you can take.

These are:

Outsource to an established payroll partner

A payroll partner can manage your global payroll through a dedicated solution. In most cases, it eliminates the need to establish a legal entity in all the countries where you have employees and is arguably the quickest and easiest way to set up and manage international payroll.

Remote has extensive experience as a payroll provider and can quickly set up and manage your global payroll.

Set up your own in-house global payroll

You can manage your global payroll internally, but this requires a significant amount of time, money, and resources. To succeed with this approach, your company would need to be able to:

• Establish legal entities in every country where your employees work — a time-consuming, costly process in itself

• Ensure that the payroll process is centralized and monitored

• Find and retain legal representation in each country

• Connect with local benefits administrators

• Navigate the intricacies of payroll, benefits, and taxes in every country you hire in

This approach is unrealistic for most small and mid-sized businesses, and a more cost-effective method is required.

See also: Should your small business outsource global payroll?

How to select the right global payroll technology provider

If you do decide to outsource, it’s crucial to select the right global payroll platform. Here are a few key factors to consider when choosing a provider:

Processing capabilities

Your provider should be able to handle all your administrative payroll requirements while juggling multiple currencies, tax codes, and employment laws. The payroll process should also be timely, including error correction and data validation.

To learn more about the requirements of global payroll processing — and how a reliable provider can make all the difference — check out our dedicated guide:

Global awareness

Your provider should fully understand the global payroll landscape, including local regulations, compliance requirements, and taxation policies. This knowledge should enable them to manage payroll processes effectively across various countries.

Flexibility and ease of use

Your provider's payroll software should be intuitive, user-friendly, and customizable to your organization's unique needs. If the interface is loud and complex and requires intensive training to understand, it will drain time and resources.

The software should also integrate seamlessly with other HR and finance systems, including enterprise resource planning (ERP) and specialist accounting software.

Compliance

Your provider should have a robust compliance framework that ensures you are always compliant with local regulations and taxation policies across various countries.

It is also vital for your payroll provider to remain fully current with any changes in compliance requirements and promptly implement these changes into the platform.

Payment methods

Look for payroll technology solutions that support an array of payment methods while prioritizing the most widely used ones. This will help you support more employee preferences, making acquiring, retaining, and paying your workforce easier.

Critical payment methods to offer include the following:

• Direct deposit

• Paper check

Other methods that aren’t mandatory but could help out include the following:

• Digital wallets

• Mobile payments

• Crypto

• Prepaid cards

Some of these are context-dependent. For example, crypto payment capabilities may not be necessary if you’re in an industry with a workforce that’s less savvy about cutting-edge technologies, like crypto.

Now, multi-currency is vital if hiring internationally. Without it, you can only pay people in your country — which limits your talent pool.

Customer service

Customer service can help you if you run into issues or need help setting up software. Some solutions even offer a white-glove setup as an included service or for an added fee.

Phone, live chat, and email support are helpful. Tech solutions should also offer a knowledge base of help articles around general payroll/HR topics in addition to using the software itself.

Data security

As payroll data contains sensitive information, your provider must have solid security measures in place to safeguard against potential threats.

Look for providers offering encryption, two-factor authentication, and regular software updates to keep your employee data safe. For instance, Remote provides enterprise-grade employment data protection with built-in payroll security, as well as a dedicated security team, Remote Data Protection Guard, two-factor authentication (2FA), single sign-on (SSO), and more.

Integration capabilities

As mentioned, your payroll platform should be able to integrate with other HR and financial systems, such as accounting software and employee management systems.

For example, accounting software integration is among the most crucial. It helps large amounts of payroll data flow into the correct accounts, streamlining bookkeeping and increasing accuracy while taking a lot of burden off the accounting and finance teams. This leaves these professionals to handle higher-level tasks, such as budgeting, forecasting, and monthly/yearly closes.

Your provider should also provide an application programming interface (API) to integrate your payroll data with other business applications.

Reporting and analytics

To make sound decisions about payroll processes, you need a provider that offers real-time reporting and advanced analytics.

Your provider should also provide customizable reporting to meet the specific needs of your business.

Pricing and plans

Ideally, pick a pricing plan that scales with you. Costs only increase when you grow and need more capacity or functionality, aligning the price of the software with your financial resources.

If you ever need to downsize, your costs will shrink accordingly.

For example, Remote has several plans for different kinds of companies. Each plan has different price points, but they all scale to some degree.

Look for free trials or demos, such as those Remote’s plans offer. These let you see the software in action before committing.

A forward-thinking approach

As with all forms of technology, payroll is constantly evolving. The advancement of innovative technologies like AI, ML, and blockchain has transformed the function and capabilities of payroll processing.

As mentioned, AI and ML can analyze large amounts of data quickly and accurately, which is highly useful for complex payroll calculations. They can also help identify data patterns and trends, allowing for more accurate predictions about your future payroll needs.

You can also securely and transparently store (and transfer) sensitive payroll records using blockchain technology. This allows employees to access their data through a secure digital platform while ensuring its safety.

As a result, you should choose a provider that has integrated (or plans to integrate) these technologies into their platform and is always looking to understand how new technologies can add value. Review some of the trends we mentioned earlier for more ideas of what to look for.

How Remote can help

As you can see, global payroll is a complex process. If you’ve got limited resources, it can be costly, time-consuming, and totally overwhelming.

Outsourcing to third-party providers in the countries you hire in is one solution. However, finding a provider that offers multi-country services can be difficult, meaning you may need to work with partners in multiple countries. This can easily lead to inefficiencies and unnecessary staffing costs and make it difficult to build trustworthy relationships.

Remote solves this problem by providing one optimized solution for your organization. Specifically, our platform enables you to:

Consolidate payroll processing and minimize administrative tasks

Remote can streamline payroll processing and minimize administrative tasks for your in-house teams. It is especially useful if you have local entities in multiple countries that lack in-house administration or rely on multiple providers.

Ensure compliance with local labor laws

One of the biggest benefits of using Remote is the assurance that you comply with local payroll regulations and labor laws in every country you hire in. Besides giving you peace of mind, it also means you don’t need to dedicate resources to researching and understanding these laws.

Reduce payroll costs and streamline processes

By centralizing your global payroll administration, you save money on the resources and infrastructure you would otherwise need to support payroll processing in multiple countries.

Remote simplifies your payroll processes, reduces the possibility of errors, and guarantees timely payments, enhancing efficiency across the board.

Make international payments and capital cash transfers

Dealing with global payments across different countries can be daunting and time-intensive.

Similarly, capital cash transfer can be a challenge. You may need to transfer funds between countries to support payroll operations, which involves navigating complex regulatory requirements and foreign exchange processes.

With Remote's integrated solutions — and proven expertise in this area — these obstacles are also removed.

This frees up time and resources for your HR and finance teams, allowing them to focus on other critical areas of operations.

Outsource tax deductions and tax returns

Complying with local tax regulations is a crucial part of global payroll. And if you have employees in multiple countries, tax deductions and returns can take a lot of time, effort, and expertise.

By outsourcing this intense administrative burden to Remote's qualified, knowledgeable experts, you reduce a significant burden on your company.

Setting up global payroll

Global payroll can seem impossible, but with the right technology and support, it doesn’t have to be. With payroll services in countries across the globe, Remote can do all the heavy lifting for you, giving you peace of mind and allowing you to focus your time, money, and resources elsewhere.

To learn more, speak with one of our friendly experts — and discover how Remote can help transform your business.

Global HR —

21 min

What is global payroll?

Learn the details of global payroll operations and find out how global payroll providers can help you start hiring fast in the international market.

What is global payroll technology?

Global payroll technology refers to the tools and software that organizations use to manage payroll processes across borders.

It enables businesses to automate and standardize payroll operations, including payroll processing, tax compliance, time and attendance tracking, benefits administration, and reporting.

It also helps solve many of the key challenges of global payroll management, such as:

• Differences in (and the complexity of) local tax laws

• Social security requirements

• Employee misclassification risk

• Permanent establishment risk

• Labor law compliance requirements

• Currency exchange rates

What are the benefits of global payroll technology?

If your business is expanding across borders, then a reliable global payroll platform — like the one offered by Remote — can deliver a wealth of benefits.

Specifically, it enables you to:

Streamline your payroll processes 

By reducing manual input, you can save time and ensure your employees receive accurate, timely compensation. This includes automating tasks such as data entry, salary calculation, deductions, taxes, and other payments. Additionally, you can gain real-time access to financial data across all locations worldwide.

Moreover, global payroll technology allows you to integrate data from multiple systems (such as HR and finance), providing a comprehensive view of your payroll expenses. This integration ensures that all payroll-related data is current and accurate, resulting in fewer discrepancies and less reworking.

Comply with employment and tax laws

Every country you hire in has different employee rights, taxation obligations, and social security contributions. Complying with all of these requirements can be daunting — for any organization.

Global payroll technology can automatically incorporate any changes in regulations, reducing the risk of penalties, legal disputes, and reputational damage resulting from non-compliance.

Bolster your data security 

With a reliable global payroll platform — like the one built by Remote — you can securely track, manage, and store employee data, such as personal information and payroll expenses.

It helps ensure that sensitive information is not lost or compromised, reducing the risk of costly data breaches and cybersecurity threats.

Increase the efficiency and accuracy of your payroll 

When you automate payroll processes, you can allocate resources more efficiently, saving significant time and cost. By avoiding manual inputs, you also reduce the likelihood of errors.

This technology can give you real-time visibility into your payroll expenses, enabling you to make informed decisions about budgeting and forecasting.

Additionally, it provides enhanced reporting capabilities, allowing you to generate customized reports and analyze your payroll data more effectively.

See also: How to save on your payroll expenses

Onboard (and offboard) more smoothly 

Payroll technology automates tasks such as data entry, paperwork, and setting up direct deposits, which reduces the time and effort required for onboarding.

Similarly, when an employee leaves, the offboarding process is automated too. This ensures that all payroll-related tasks — such as final paychecks and tax forms — are dealt with accurately and promptly.

Easily track PTO, attendance, and pay slips

Payroll technology allows you to track and manage employee time off more effectively, which ensures that you are complying with local labor laws.

Additionally, it gives your employees easy access to their pay slips (and other payroll-related information), reducing the need for manual inquiries.

How to set up global payroll

To set up payroll in multiple countries, there are two primary approaches you can take. These are:

Outsource to an established payroll partner

A payroll partner can manage your global payroll through a dedicated solution. In most cases, it eliminates the need to establish a legal entity in all of the countries where you have employees, and is arguably the quickest and easiest way to set up and manage international payroll.

Remote has extensive experience as a payroll provider, and can quickly set up and manage your global payroll. 

Set up your own in-house global payroll

You can, of course, manage your global payroll internally, but this requires a significant amount of time, money, and resources. To succeed with this approach, your company would need to be able to:

• Establish legal entities in every country where your employees work — a hugely time-consuming and costly process in itself

• Ensure that the payroll process is centralized and monitored

• Find and retain legal representation in each country

• Connect with local benefits administrators

• Navigate the unique intricacies of payroll, benefits, and taxes in every country you hire in

For most small and mid-sized businesses, this approach is unrealistic, and a more cost-effective method is required.

See also: Should your small business outsource global payroll?

How to select the right global payroll technology provider

If you do decide to outsource, it’s crucial to select the right global payroll platform. Here are a few key factors to consider when choosing a provider:

Processing capabilities

Your provider should be able to handle all your administrative payroll requirements, while also juggling multiple currencies, tax codes, and employment laws. The payroll process should also be timely, including error correction and data validation.

To learn more about the requirements of global payroll processing — and how a reliable provider can make all the difference — check out our dedicated guide:

Get your Global Payroll Guide for expert advice on outsourcing

Learn how to manage global payroll for your team and keep your company compliant with international labor laws.

Get the guide

Global awareness

Your provider should fully understand the global payroll landscape, including local regulations, compliance requirements, and taxation policies. This knowledge should enable them to manage payroll processes effectively across various countries.

Flexibility and ease of use

Your provider's payroll software should be intuitive, user-friendly, and customizable to your organization's unique needs. If the interface is loud and complex, and requires intensive training to understand, it’s going to drain time and resources.

The software should also integrate seamlessly with other HR and finance systems, including enterprise resource planning (ERP) and specialist accounting software.

Compliance

Your provider should have a robust compliance framework that ensures you are always compliant with local regulations and taxation policies across various countries.

It is also vital for your payroll provider to remain fully current with any changes in compliance requirements, and promptly implement these changes into the platform.

Data security

As payroll data contains sensitive information, your provider must have solid security measures in place to safeguard against potential threats.

Look for providers offering encryption, two-factor authentication, and regular software updates to keep your employee data safe. For instance, Remote provides enterprise-grade employment data protection with built-in payroll security, as well as a dedicated security team, Remote Data Protection Guard, two-factor authentication (2FA), single sign-on (SSO), and more.

Integration capabilities

As mentioned, your payroll platform should be able to integrate with other HR and financial systems, such as accounting software and employee management systems.

Your provider should also provide an application programming interface (API) to integrate your payroll data with other business applications.

Reporting and analytics

To make sound decisions about payroll processes, you need a provider that offers real-time reporting and advanced analytics.

Your provider should also provide customizable reporting to meet the specific needs of your business.

A forward-thinking approach

As with all forms of technology, payroll is constantly evolving. The advancement of innovative technologies like artificial intelligence (AI), machine learning (ML), and blockchain has transformed the function and capabilities of payroll processing.

For instance, AI and ML can analyze large amounts of data quickly and accurately, which is highly useful for complex payroll calculations. They can also help identify data patterns and trends, allowing for more accurate predictions about your future payroll needs.

You can also securely and transparently store (and transfer) sensitive payroll records using blockchain technology. This provides employees with access to their data through a secure digital platform while ensuring its safety.

As a result, you should choose a provider that has integrated (or plans to integrate) these technologies into their platform, and is always looking to understand how new technologies can add value.

How can Remote help?

As you can see, global payroll is a complex process. If you’ve got limited resources, it can be costly, time-consuming, and totally overwhelming.

Outsourcing to third-party providers in the countries you hire in is one solution. However, finding a provider that offers multi-country services can be difficult, meaning you may need to work with partners in multiple countries. This can easily lead to inefficiencies and unnecessary staffing costs, and make it difficult to build trustworthy relationships.

Remote solves this problem by providing one optimized solution for your organization. Specifically, our platform enables you to:

Consolidate payroll processing and minimize administrative tasks

Remote can streamline your payroll processing and minimize administrative tasks for your in-house teams. It is especially useful if you have local entities in multiple countries that lack in-house administration or rely on multiple providers.

Ensure compliance with local labor laws

One of the biggest benefits of using Remote is the assurance that you are complying with local payroll regulations and labor laws — in every country you hire in. As well as giving you peace of mind, it also means that you don’t need to dedicate resources to researching and understanding these laws.

Reduce payroll costs and streamline processes

By centralizing your global payroll administration, you save money on the resources and infrastructure you would otherwise need to support payroll processing in multiple countries.

Remote simplifies your payroll processes, reduces the possibility of errors, and guarantees timely payments, enhancing efficiency across the board.

Make international payments and capital cash transfers

Dealing with global payments across different countries can be daunting and time-intensive.

Similarly, capital cash transfer can be a challenge. You may need to transfer funds between countries to support payroll operations, which involves navigating complex regulatory requirements and foreign exchange processes.

With Remote's integrated solutions — and proven expertise in this area — these obstacles are also removed.

This frees up time and resources for your HR and finance teams, allowing them to focus on other critical areas of operations.

Outsource tax deductions and tax returns

Complying with local tax regulations is a crucial part of global payroll. And if you have employees in multiple countries, tax deductions and returns can take a lot of time, effort, and expertise.

By outsourcing this intense administrative burden to Remote's qualified, knowledgeable experts, you reduce a significant burden on your company.

Setting up global payroll

Global payroll can seem like an impossible task, but with the right technology and support, it doesn’t have to be. With payroll services in countries across the globe, Remote can do all the heavy lifting for you, giving you peace of mind and allowing you to focus your time, money, and resources elsewhere.

To learn more, speak with one of our friendly experts — and discover how exactly Remote can help transform your business.

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