The single HR platform you can rely on for assured global growth

As your company expands and becomes a midsize organisation, your payroll solution must evolve as well. Whether you handle payroll domestically, internationally, or both, your payroll software needs to be able to support and drive that growth.

Midsize company payroll software should offer:

• Multi-location support. Medium-sized companies commonly have employees across several locations, both domestic and international. Your payroll partner should handle multiple currencies, ensure compliance with local labour laws, and process payments through approved banks.

• Advanced capabilities. Beyond basic payroll functions, your software should include robust features such as benefits administration, tax compliance, and management of equity incentives like stock options. These capabilities are vital to support the diverse needs of a growing midsize organisation.

• Scalability. As your company expands across borders, payroll requirements grow more complex. The payroll platform you choose should scale with your business, accommodating more employees and integrating additional HR services.

Managing payroll internally for an international workforce poses major challenges. To legally pay employees in other countries, organisations generally have three options:

• Set up an entity in each country where your employees reside

• Partner with an employer of record (EOR) provider, like Remote

• Hire workers as contractors

Forming entities is costly and time-consuming, and you will still need to either run payroll internally or outsource to a specialist. Conversely, hiring contractors carries compliance risks if it is not properly managed.

For midsize companies, an EOR is frequently the most practical and efficient solution for managing global payroll. It lets you hire legally in different countries without establishing local entities, ensures compliance with local employment laws, and enables management of payroll, taxes, benefits, and other legal HR obligations efficiently.

Midsize organisations typically find outsourcing HR services more cost-effective and efficient than attempting to manage every HR function internally. The resources required for payroll, benefits, tax withholding, payroll deductions, equity incentives, and compliance can be large, even for a mid-market company.

Even large enterprises often outsource HR to access specialist expertise and technology. Typical reasons for outsourcing include:

• Cost efficiency. Organisations can access advanced HR services without making a heavy investment in an internal HR department.

• Ability to focus on core operations. Outsourcing lets businesses ensure HR tasks are handled by experts who remain current with compliance requirements and best practices, allowing the company to focus on core activities.

• Scalability. Outsourcing provides the flexibility to scale HR services in line with company growth, without constantly recruiting and training new HR staff.

• Global expertise. For growth-focused businesses, global HR challenges multiply. Outsourcing ensures compliance with local labour laws, efficient payroll processing, and proper benefits administration across different countries.

Costs for payroll services vary widely for midsize businesses depending on where employees are located, your total payroll spend, and the benefits you provide. Unlike SMBs, midsize companies often handle larger and more complex payrolls, particularly when remote teams span multiple countries.

Plan on budgeting from a few hundred up to several thousand dollars per month for payroll services, depending on scale and scope. This varies with workforce size, payroll complexity, and whether you operate domestically or internationally.

For further details on small business payroll costs across multiple countries, see Remote’s pricing page.

When evaluating an EOR provider, pose the following questions to prospective partners:

• Do they operate their own entities in each country, or do they rely on third parties in some jurisdictions?

• How do they manage compliance within complex regulatory environments?

• Which protections do they provide for IP and invention rights?

• How do they secure employees' sensitive personal information?

• Can they manage complex compensation arrangements, including equity and bonus plans?

• Can they support rapid growth and expand into new markets quickly?

• Are there any hidden fees that vary between countries?

• Do they provide dedicated local support and market-specific expertise?