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In the complex global landscape, technology has become our ally. Fortunately, modern global payroll solutions, armed with robust compliance and reporting capabilities, simplify the lives of payroll and HR managers.
Imagine all challenges related to calculations, error checks, and payment timing are consolidated under one roof – the global payroll software.
Efficient global HR /payroll software should create time through automation, especially as your business expands and faces higher workloads. In this guide, we will explore the key criteria for selecting the best payroll software.
Let's start by identifying the underlying problem.
Before delving into the complexities of global payroll, it’s critical to pinpoint the challenge you aim to address.
Perhaps there's a need for:
For each scenario, I recommend evaluating specific attributes in global payroll software.
Different countries have unique tax laws, labor regulations, and reporting requirements. For example, during December, there might be a Christmas package recorded in an HR payroll software, and employees could receive a small token.
In places like Thailand, service awards may not be monetary; they could be a gift, like a paperback notebook. Staying compliant entails attention to such details.
An effective international payroll system needs to consider these differences to align with multiple jurisdictions.
If you have only a handful of employees in a particular location and establishing a foreign entity would not pay off, an Employer of Record (EOR) service might help. A global payroll provider might cover the legal liabilities of hiring foreign workers. Plus, they generally offer you a mix of global HR onboarding software and an international payroll platform to give you control over the multi-stage process.
An Employer of Record typically takes care of payroll, administration, and reporting, ensuring everything aligns with local rules.
When stepping into new territories, especially places like India with different labor laws in each state, teaming up with an EOR makes onboarding and international payroll much simpler.
Comprehensive global payroll reporting is crucial to avoid oversights. With detailed payroll reports, managers can communicate both positive and negative outcomes to the C-suite, adjusting business roadmaps.
When choosing global payroll software, opt for solutions offering the following data sets:
Stakeholders and the C-suite frequently turn to global payroll data and particularly to a gross-to-net report. Considering the breakdown of an employee's gross pay, taxes, contributions, and local accruals, they can adjust strategic decisions.
Ensure you can see on payroll processing software the taxes and social security paid in each country.
Software for HR is like a wise counselor who suggests cost-effective decisions for global payroll distribution. Using the metrics like total cost per employee, you can avoid overpaying for the same type of work in different regions.
A lot is going on in the area of pay equality and salary transparency at the moment.
Payroll software should help in establishing DEI policies and adhere to foreign regulations.
It should provide insights into questions such as:
Modern global payroll solutions are designed not only for administrators but also with employees in mind. In the last year, many companies have been considering adding payroll options such as earned wage access.
This allows employees to request a certain portion of their pay once they have worked, instead of having to wait until the end of the pay period to receive the full amount.
Why is it becoming popular? In regions facing a cost of living crisis, some employees may have to choose between heating or eating. Moving employee payments from monthly to weekly, or even daily just within a global payroll software might solve their problems. It really impacts the mental health.
However, whether employees can control payroll tools and plan the timing of the payment is up to you. There is no one-size-fits-all solution.
Consider how well HR and payroll software integrate. Well, most integrations are standardized. However, in some cases creating a bespoke integration per solution per country may be necessary.
Which strategy from the list are you planning to try first? If your specific struggle isn't addressed, you can explore additional options for global payroll implementation for SMEs, startups, or large companies on the Juggl global payroll website.
