The meaning of Global Payroll

‘Payroll’ refers to the process of a company paying its employees. So, it stands to reason that ‘global payroll’ is the same process but on an international scale.

But there’s more to an organisation’s payroll than handling employees’ salaries.

Global payroll not only requires employers to pay employees in a variety of currencies and at different intervals, but also to comply with ever-changing local payroll regulations, implement tax codes, apply deductions or bonuses, track hours worked by each employee and account for any sick days.

With so many different elements to think about, many international organisations choose to outsource their payroll requirements to a global payroll service provider — giving them the flexibility to scale their payroll up or down seamlessly.

What are the different types of payroll providers?

If you’re choosing to outsource your global payroll obligations, it’s essential that you choose the right provider that’ll work with your business to suit your specific requirements.

Typically, you’ll have to choose between a partner-dependent or an owned-entity provider. But what’s the difference?

Partner-dependent

Partner-dependent payroll providers rely on a network of third-party vendors and are typically engaged in multiple contracts with individual, local payroll providers in each country. This payroll model means that businesses liaise with a point of contact at their chosen provider, who then corresponds with a local payroll partner. These in-country experts are highly knowledgeable about each country’s employment and payroll laws, and their teams will likely be comprised of people who grew up in the country.

The simplest form of partner-dependent payroll models was introduced as the original solution for managing payroll across borders before we had access to advanced payroll technology and software.

This model is still suitable for companies with a lower headcount paying employees in just one additional overseas location. However, any businesses employing in multiple countries worldwide are unlikely to do well with a payroll provider that’s solely dependent on its partners.

Without a centrally managed platform that everyone can access, the communication chain creates scope for error. It slows down processes — risking your business falling out of compliance and often resulting in poor data management. This kind of payroll model also means you and your employees usually don’t have complete visibility over payroll data, which could cause serious problems down the line.

Owned-entity

When you work with a payroll service provider with wholly-owned entities in various countries, they won’t be working with third parties to deliver your business’ payroll. Instead, they’ll have their own in-country experts working across the globe with no involvement from external partners.

Whilst this might be a good way to keep all your employees’ payroll data under one roof, what happens when you want to expand somewhere your payroll provider doesn’t service yet? Unless you’re willing to jump ship (or work with another payroll provider simultaneously), your chosen provider will have to go through the lengthy process of setting up a legal entity in your desired location.

However, owned-entity payroll providers tend to be less expensive and can exercise greater control over their prices, helping you to avoid an extortionate fee charged by a third party. Moreover, sensitive payroll data is kept safer when it’s not being passed through multiple external partners.

What kind of provider should I choose?

Opting solely for either an owned-entity provider or a partner-dependent one comes with both pros and cons. But what if you could access the best bits of both offerings?

When you outsource your payroll obligations to TopSource Worldwide, you benefit from our comprehensive global payroll coverage. Not only do we have entities set up in almost every corner of the world — from Asia to America to Europe — but we also work closely with a trusted network of in-country partners to supplement our global payroll offering. And if there’s anywhere we don’t cover already, we’ll help you identify a tried-and-tested local third party to secure your payroll needs.

Our global payroll model prioritises you and your employees. Blending these approaches allows us to tailor our services to your business’ specific needs — as we know that one size never fits all. We still offer a single point of contact and ensure your employees’ payroll data is safe. Plus, you gain access to our centrally managed payroll and HR database, Portico, which organises and consolidates all payroll data in one secure location. Portico keeps your payroll information and reports in one place, ensuring consistent and standardised processes in every country you operate in.

We also offer a global payment solution that brings down costs, enhances compliance and improves assurance of payment delivery. Whether you’re paying staff in AUD, USD, GBP, EUR or CZK, our one-click global payments solution allows you to pay hundreds of employees in over 100 countries, all through a single consolidated invoice. We send an invoice; you pay it, and your employees get paid. It’s as simple as that.

Our global payroll solution saves time, improves compliance and guarantees total standardisation across your payroll operations, ensuring your employees get paid on time, every time. Get in touch today to learn more about how we can help.

Share this article, choose your platform!

Published On: 27/04/22Last Updated: 14/09/22

About the Author: Darshan Singh

Darshan heads the Global Payroll business unit and is responsible for global payroll sales and delivery. Darshan has over 12 years of experience within the company, and previously headed up UK payroll operations. Email: darshan.singh@topsourceworldwide.com

Subscribe to our newsletter don’t miss out

Subscribe to receive our latest posts and events straight to your inbox.

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.

Our top blog categories

Global employment cost calculator

Estimate the cost of your new hire with our new calculator.

Calculate costs

Recent posts

What makes effective HR management?

By |21/09/22|

Your workforce is the most essential component of your business. Therefore, you must have effective HR management to achieve an efficient, positive, and productive ...

Our services

Global Employer of Record

Complete employment contracts and management of employee benefits.

Find out more

Global Payroll

Fully compliant, consolidated payroll processing in over 100 countries.

Find out more

UK Payroll

Make sure your UK employees are paid correctly and on time, every time.

Find out more

India Payroll

From statutory filing and HR to employee self-service, we’ve got your India payroll covered.

Find out more

Related posts

  • Published On: 19/07/224 min readBy

    If you run a business or work in human resources, you’ll be familiar with payroll’s endless demands. Ensuring every ...

    Read the full blog
  • Published On: 19/07/223 min readBy

    Overseeing payroll in-house is no mean feat. From the intricacies of hiring and HR to ever-changing legislative compliance requirements, ...

    Read the full blog
  • Published On: 15/06/226 min readBy

    Payroll regulations are rarely the same for any two countries. And if you've looked into taking your business’ operations global, ...

    Read the full blog
  • Published On: 19/07/224 min readBy

    If you run a business or work in human resources, you’ll be familiar with payroll’s endless demands. Ensuring every ...

    Read the full blog
  • Published On: 19/07/223 min readBy

    Overseeing payroll in-house is no mean feat. From the intricacies of hiring and HR to ever-changing legislative compliance requirements, ...

    Read the full blog
  • Published On: 15/06/226 min readBy

    Payroll regulations are rarely the same for any two countries. And if you've looked into taking your business’ operations global, ...

    Read the full blog
  • Published On: 13/06/224 min readBy

    Businesses of all shapes and sizes now have remote teams situated all around the world. But if you’re looking ...

    Read the full blog

Start your global expansion journey today.

Expand faster and stay compliant in over 150 countries without a legal entity

  • Expand globally

  • Deploy quickly (in days not weeks)

  • A single global portal for all your hiring needs

  • No legal entity required

  • Experienced expert team

Contact us today & talk to an international payroll or EOR consultant

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.