BLOG: Processing international payroll
As the world has become a smaller place, it is now common for businesses to pay employees who are located in other countries. They might work remotely or they might work out of international offices but they may need to form part of your international payroll.
Where Do You Begin?
International payments in their simplest form are relatively easy given that there are many platforms available to use, but there is more to it when you delve into finer details. Many of these platforms or tools require specialist knowledge and, in many cases, it can mean that businesses lose money through exchange rates and fees. This is where it is important to ensure that you utilise the services of international payroll experts. This will ensure that they work with your best interests as a priority.
What Needs to Be Considered?
There are many varying factors that need to be considered when it comes to setting up international payments. This is the reason why you should call on the expertise of international payroll specialists.
Government Regulations – According to government guidance, how you calculate and pay PAYE tax and National Insurance contributions for employees who work abroad, depends on where they’re working and how long you expect them to be working there. Other factors to consider include social security contributions and exemptions, depending on location
Tax Compliance – Different countries have different tax laws and you are going to need to understand them. If you are not tax compliant then it could result in hefty fines. So, to minimise the impact and to avoid fines, you might want to consider speaking with experts as a way of gaining an understanding of what is expected of you.
Keep Business Efficient – Cultural differences and alternative ways of working can slow your business down. As a result, you are going to need to gain an understanding of communication styles, values and the best way to improve the payroll process.
Foreign Exchange Rates and Fees
Exchange rates are going to become an influential factor in the way in which you make international payments. As a result, you could consider working with a foreign exchange and international payment specialist. Expert guidance will help you to manage all aspects of processing international payroll. It will allow you to take a hands-off approach while benefiting from an understanding of the influential factors that can cause exchange rates to fluctuate.
A specialist foreign exchange provider, such as NewbridgeFX, have the tools and knowledge to help you to save considerable time and money on international payroll operations, enabling the use of mass payments, and bulk beneficiary uploads via an online platform. This ability to manage the whole process in bulk is very pertinent for international payroll, and means the whole process can be very efficient with multiple payments being processed with a few clicks via an online platform.
The products and services we offer, such as the ability to transact 24 hours a day from multiple devices, hold multiple currencies and view multi-currency balances, make fast, secure payments to 212 countries via Local Pay-outs and Swift, and see real-time reporting and tracking for all conversions and payments, make the payroll process very effective.
In addition to our process, there are no fees when processing payments, as well as getting very competitive exchange rates, either via Spot or Forward contracts, which means international payroll becomes very cost effective, having a positive impact to your company’s payroll costs.
To discuss how NewbridgeFX can help you when processing international payroll, please don’t hesitate to get in contact