How to Overcome Global Payroll Challenges in 2021

Do you have plans on extending your workforce globally? Then you will need to look for a good strategy to hire and retain global top talents.?

And an international expansion needs a good foundation of a remote team payroll strategy.?

According to the survey of the 2021 Work Study Index, about 70% of employees are in favour of continuing flexible working options and the development of technology has enabled companies to expand to new markets and hire people anywhere in the globe.?

However, to make remote work sustainable for employees, employers need to establish scalable global payroll solutions.?

The challenges in creating successful good global payroll operations for people include the complexity of local tax and workplace compliance, contracting and other factors concerning remote work.?

The global payroll delivery being on a manual level would not be sustainable for global payroll teams, especially that there will be a rapid placement and onboarding of international employees. This method of managing payroll data and validation will create unmanageable limitations for payroll professionals and teams.?

Here are essential aspects that you add to your global payroll operation strategies.?

Global Remote Compliance Solution

In remote workforce hiring, companies need to consider the differences of each contract and compliance and type of work. In onboarding global talent coming from different states, you must abide by certain jurisdictions and local laws.?

These differences sometimes required manual work from payroll professionals, which increases the risk of human error and failure in compliance with the local labour laws.?

That is why the payroll teams must be advanced in the preparations for strategies in hiring in different places and countries.?

The first thing your company must do is to establish is a clear payroll policy that your remote workforce must follow. Keep it concise and specific when determining work focus and expected work to do and obligations to compliance.

Seek legal advice from a local professional counsel to further understand local specificities that you need to consider as an employer.?

Complexities of Contracting and Tax Systems

When globally hiring, employers must assess local contracts of specific locations and ensure that employment is aligned with federal, state and tax laws.??

However, it can be challenging as classifying the workforce should be accurately filled. If not, employees will not be able to access the significant work benefits, such as healthcare and overtime pay.?

Doing contracting and filling for taxes at a manual level can put a significant strain on your workforce.?

That is why it requires a systematic and advanced approach which must also be complementary to your long-term plans and strategies.?

You can standardize workforce classification and automate your contracting by accessing a proper support system.?

Payroll Equity within Remote Teams

As employers, it is your obligation to ensure that you’re team is being compensated fairly for the work that they’re doing and not denied of their rights to work benefits.?

This is why companies must also establish a good company-wide policy where each member can get what they equally deserve.?

Though work benefits can vary from independent contractual to employees. That is why establishing payroll equity within remote teams can get challenging.?

To avoid resentment or issues arising from these differences, employers must have to consider adding perks and hear out the concerns, especially the ones needed to be addressed early.?

Every company must have flexible remote team policies to ensure the goal of fairness among employees is received by all and it must be accompanied by transparency and good partnership from local and international teams.?