The only HR platform you need for confident global growth

As your business grows and you evolve into a midsized operation, so too must your payroll solution. Whether you’re managing payroll domestically, globally, or both, your payroll software should be able to support and power this growth.

Midsize company payroll software should include:

• Multi-location support. Growing medium-sized companies often have employees in various locations, both domestically and internationally. To support this, your payroll partner should be able to seamlessly handle payments in different currencies, ensure compliance with local labor laws, and process payments through approved banks.

• Advanced capabilities. As well as standard payroll management, your software should provide robust features such as benefits administration, tax compliance, and the management of equity incentives, such as stock options. These advanced features are essential for supporting the diverse and complex needs of a growing midsize organization.

• Scalability. As your business expands across borders, your payroll needs become more complex. Your payroll software should scale with your business, handling increasing numbers of employees and the integration of additional HR services.

Running payroll in-house for a global workforce can present significant challenges. To legally pay your employees in other countries, you typically have three options:

• Establish an entity in each country where your employees reside

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

• Hire workers as contractors

Creating entities can be expensive and time-consuming, and you will still need to either manage your payroll in-house or outsource to a specialist. Meanwhile, hiring workers as contractors can come with potential compliance risks if not managed correctly.

For midsized businesses, an EOR is often the most efficient and practical solution for managing global payroll. It allows you to hire legally in various countries without needing to establish local entities, and ensures compliance with local employment laws. It also enables you to manage global payroll and taxes, administer benefits, and address all other legal and HR obligations efficiently.

Midsize businesses often find it more cost-effective and efficient to outsource HR services rather than managing every HR function in-house. This is because the resources required to handle payroll, benefits, tax withholding, payroll deductions, equity incentives, and compliance can be overwhelming, even for a mid-market company.

Even large enterprises frequently outsource HR services to leverage specialist expertise and technology. Key reasons for outsourcing usually include:

• Cost efficiency. Businesses want to access advanced HR services without having to invest heavily in an in-house HR department.

• Ability to focus on core operations. Businesses want to ensure that HR tasks are handled by experts who are up-to-date with the latest compliance requirements and best practices.

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

• Global expertise. For growth-focused businesses, the challenges of global HR management are amplified. Outsourcing provides peace of mind, and ensures compliance with local labor laws, efficient payroll processing, and proper benefits administration across different countries.

For mid-sized businesses, payroll service costs can vary significantly depending on the location of your employees, your total payroll expenses, and the benefits you offer. Unlike SMBs, mid-sized companies often manage larger and more complex payrolls, especially when dealing with remote teams across multiple countries.

That said, you should aim to budget anywhere from a few hundred to several thousand dollars per month for payroll services, depending on the scale and scope of what is needed. This cost is influenced by the size of your workforce, the complexity of your payroll and HR needs, and whether you operate domestically or globally.

For more information on costs for small business payroll in multiple countries, see Remote’s pricing page.

When choosing an EOR provider, ask potential partners the following questions:

• Do they own their own entities in every country, or do they outsource to third parties in certain countries?

• How do they handle compliance with complex regulatory environments?

• What kind of protections do they provide for IP and invention rights?

• How do they ensure security when handling your employees’ sensitive personal information?

• Can they handle complex compensation structures, including equity and bonus plans?

• Can they support rapid growth and enter new markets quickly?

• Are there any hidden fees that change from one country to another?

• Do they provide dedicated support and expertise for each market?