Global Payroll: How To Pay Your International Employees?

Working with international talent has many benefits but can also include some complications. Especially when it comes to all the paperwork regarding the payments and dealing with local laws and regulations.

Here at Native Teams, we specialize in offering solutions to make remote work easier and accessible for everyone – for employees as well as for employers.

Take a look at our tips for paying your international team the easiest way!

Understanding global payroll and local tax compliance

Global payroll is a centralized process of calculating salaries, taxes, contributions and benefits. All while delivering payments to your employees in different countries and staying compliant with their local laws.

It’s more complex than local payroll since your employees come from different countries. That’s because different countries have different employment laws, currencies, available payment methods, benefits, tax regulations, etc.

Penalties for not following the local regulations can be pretty high. That’s why many companies decide to outsource the full employment and global payroll processes. That way, they can save time, money and energy on handling it in-house.

How to pay your international employees?

The way you can pay out your global employees depends on their skills and location. You have a few options, for example setting up a local business entity, hiring your new talent as contractors or using the employer of record service, such as Native Teams. 

The last option is probably the easiest, cheapest and most convenient option for expanding globally. But let’s take a look at all three of them.

1. Set up a local business entity and run payroll locally

Opening a new local business entity is a complex process that takes time, effort and requires people with knowledge of local laws. However, once you open a local business entity, you will operate as a fully functional company and can run domestic payroll for your local employees there.

2. Hire remote workers as contractors

If you require short-term or project-based support, you may want to consider hiring independent contractors. That way, you will be your contractor’s client and you won’t have to own a business in their country to hire them legally. 

You are responsible for paying the invoice in their local currency and under the agreed terms and conditions. The contractor is also responsible for paying their own taxes and taking care of their benefits.

The contractors you hire can very easily invoice your company directly with our Native Teams invoicing system.

3. Use an employer of record service

An employer of record (EOR) is a company that owns and operates business entities in several countries. That way, it can hire employees for other companies and spare them from having to set up their own business entities.

It’s often the preferred method to pay international employees. It takes care of all the local employment and automates payroll on your behalf. Not only that, but it’s also much cheaper than setting up local entities, especially if you plan to hire in several countries.

Native Teams makes global hiring and payroll easy

Native Teams offers employer of record services and payment options for more than 30 countries around the world.

Native Teams is your best solution for everything regarding global employment and payroll. You can hire, onboard and pay out your team all within one platform.

We have legal local entities in more than 30 countries around the world. That way, you can grow and access new markets without having a business entity. We handle the entire process and help you employ, onboard and pay your team globally with full legal compliance.

How can I set up payroll for my global team with Native Teams?

Super easy, actually!

You should first sign up for our Employer package and select the country which you want to hire from.

Then, you should determine your employees’ salaries as well as the currency you want to pay them. You can easily calculate that with our payroll calculators. We’ll take on all employment liability, handle all legal contracts through our legal partners as well as take on all the HR admin stuff for you.

You can send invites in bulk, set up the payroll for all your team members in their local currency and manage your employees’ payroll with just a few clicks.

Curious to know more?

Visit Native Teams For Employers for more information, contact us directly or book a free demo call with our local experts.
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