3 common myths about international payroll25th Jun 2018
International payroll can be hugely beneficial to organisations, but there are still some myths and rumours that put multinational organisations off embracing it. For some organisations, outsourcing payroll from an international services provider can be the difference between a large fine and a flourishing HR and payroll department.
It’s sometimes hard to differentiate fact from fiction, so here are some common misunderstandings in international payroll.
Myth: There’s only one option available
There are various international payroll services that are available to multinational organisations. These services can scaleup with the business, and can be tailored specifically to HR and payroll teams depending on international needs. Here are three examples:
Software as a Service (SaaS): The HR and payroll team manage the payroll in-house, with the outsourced provider simply setting up and hosting the software.
Managed Payroll Services: The middle ground between SaaS and Comprehensive Services. This allows the HR and payroll teams to choose which services they require, and what services they want the outsourced provider to complete and manage.
Comprehensive Payroll Services: Fully serviced payroll, with the outsourced provider managing the entire process.
For example, SD Worx’s 3-layer approach offers flexibility and agility to its customers, something that is not offered by all providers. A 3-layered approach gives organisations a choice in governance, services and tools, all combined within a single integrated solution. This gives customers peace of mind that their payroll is running successfully.
Tailoring international payroll services to the organisation’s needs are essential. Many organisations believe that when it comes to international payroll, one size fits all, but this is far from true.
Myth: It uses up valuable time
Although international payroll sounds daunting, it actually saves HR and payroll teams time. There are various levels of services available to international businesses, so in-house teams can decide how many tasks they want to outsource, and can adapt accordingly.
By outsourcing international payroll, HR and payroll teams can complete more important and human-facing tasks, leaving the mundane tasks to be automated or managed separately.
Myth: It’s costly to the business
Investing in international payroll capabilities sounds costly, but it can save the organisation thousands of euros per year. HR and payroll teams often save money from reduced IT and payroll costs.
In addition to saving money on payroll and IT, ensuring that the international payroll is managed correctly can even save the business from fines from non-compliance. International payroll might sound costly, but it can save businesses a lot of money long-term.
By understanding the facts around international payroll services, businesses are much more likely to reap the rewards of outsourcing international payroll and avoid the risks.
To learn more about what the Payroll Services Alliance can do for your business, please get in touch.
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