We’re not the only players in the global payroll business, and we believe in giving credit where it’s due. There are plenty of international payroll services to go around: connecting cross border and keeping track of compliance, payroll taxes, and employment laws across multiple jurisdictions is a technological, legal and logistical challenge, even for international payroll service providers.
A challenge of that size attracts innovation – the human resources payroll software market is estimated at around a cool $16 billion, after all.
By choosing one of the top international payroll processing providers on this list, a small business or large enterprise can enjoy payroll benefits and ensure that their global payroll solution needs are taken care of, allowing them to focus on what they do best: growing their business.
So we’ve put together our own round-up of the top 5 global payroll solutions companies in 2022, using three main criteria:
- Global payroll coverage: how many different countries does the service provider open to you?
- Offering: does the provider allow you to onboard both employees and international contractors?
- Customer service: do you get ongoing customer support and up-to-date tech solutions to the problems you face?
Here’s the cheat-sheet version, in no particular order:
- Globalization Partners
But first, let’s dive into why international payroll solutions are so important and why there are so many providers too choose from in 2022.
Why is it so important to use a global payroll provider?
Managing international payroll solutions for businesses that operate across multiple countries can be a challenging task. As these companies expand into new markets, they need to run payroll and navigate various complexities, including tax law, employment contracts, work permits, and workforce management. By partnering with an international payroll provider, businesses can streamline their payroll processes, reduce errors, and ensure compliance with local regulations.
When expanding globally, businesses may face the challenge of finding and hiring international contractors in each new country where they operate. This can be a daunting task, as businesses need to navigate the complex web of regulations around independent contractor classification and tax withholding.
However, using an international payroll solution can help businesses avoid the need to rely on global contractors altogether. Global providers often offer Employer of Record (EOR) services, which enable businesses to hire employees directly in the new country without having to establish their own legal entity or navigate the complexities of independent contractor classification.
With EOR services, the global provider acts as the legal employer of the business’s employees in the new country. This means that the provider takes care of all legal and administrative tasks related to international hiring, including compliance with local labor laws. The business retains control over the day-to-day activities of global employees, while the global provider takes care of the legal and administrative tasks.
Tax laws and compliance
One of the most significant challenges of expanding globally is navigating the complex web of local laws and compliance regulations in each new country. Tax laws can vary widely from one country to another, and compliance requirements can be complex and time-consuming to manage.
However, using an international payroll provider can simplify law and compliance for businesses expanding globally. Global providers typically have extensive knowledge and experience working with law and compliance regulations in multiple countries, making them well-equipped to handle these challenges on behalf of their clients.
For example, a global provider can help businesses navigate local compliance requirements, ensuring that they are in full compliance with all applicable regulations. They can also provide payroll support and guidance on issues such as tax filing, tax payments, and other tax-related matters.
Employee portal and workforce management
Portals and workforce management are essential components of global payroll services. They enable businesses to manage their employees’ payroll and HR-related activities seamlessly.
The portal is an online payroll platform that provides employees with easy access to their payroll payments and benefits information, such as pay stubs, tax forms, and benefits enrolment. It provides employees with a centralized location to manage their personal information, update their direct deposit information, and view their compensation history.
With workforce management tools, businesses can manage their employees’ schedules, time off requests, and performance evaluations in a streamlined and efficient manner. Workforce tools also provide businesses with valuable insights into employee productivity, attendance, and overall job performance.
Business entities and payroll management
One of the crucial decisions to make is the type of business entity you want to establish in the new country. The type of business entity you choose will have significant implications for your payroll system.
Different entities have different payroll and tax obligations, and an international payroll provider can help you navigate these complexities. Some common entities include sole proprietorship, partnership, limited liability company (LLC), corporation, and branch office.
Sole proprietorship is the simplest form of business entity, and the owner is responsible for all aspects of the business, including payroll. In contrast, a corporation is a separate legal entity that pays its own taxes and is responsible for its payroll. A global payroll services provider can help you determine the best business entity structure for your expansion plans and oversee payroll costs for each entity.
Why are there so many top global payroll providers to choose from?
There’s no shortage of top international payroll and Employer of Record (EOR) organizations out there. They’ve emerged to help companies to expand their global footprint and compete for the best remote talent management with employee benefits. Some international payroll services provide Employer of Record services first and foremost, while others are HR companies that double as payroll companies.
The rise of technology
The rise of technology and the internet has also played a significant role in the growth of international payroll services. With cloud-based global payroll software and tools, you can have real-time data access, automated processes, and enhanced data security. These technology-driven solutions have made it easier for businesses to manage their global payroll across countries and entities, providing greater flexibility and scalability.
The use of artificial intelligence and machine learning algorithms is also transforming payroll, allowing for predictive analytics and customized reporting to support payroll data-driven decision-making. As technology continues to advance, we can expect to see even more innovative solutions from the best international payroll services.
As businesses expand globally, the complexity of payroll increases. Each country has its own unique set of regulations, laws, and compliance requirements that can be difficult to navigate. For instance, some countries require employers to make social security contributions on behalf of their employees, while others require mandatory health insurance contributions.
These complexities can be further compounded by language barriers and time zone differences, making it difficult for businesses to manage their payroll effectively. However, by partnering with global payroll providers, businesses can benefit from their expertise and experience in navigating these complexities. They can also ensure compliance with local regulations and avoid costly mistakes that can result in fines and penalties.
Payroll management has become highly specialized, with complex processes and regulations that vary by country and region. This specialization requires a deep understanding of foreign exchange fees, local tax laws, labor regulations, and compliance requirements.
In-house payroll teams may lack the expertise required to process payroll across countries, and the cost of hiring and training new staff can be prohibitive. Global payroll providers, on the other hand, specialize in managing payroll across different countries and have a team of experts who are up-to-date on the latest regulations and compliance requirements.
By outsourcing payroll to a global provider, businesses can ensure that their payroll is managed effectively and efficiently, freeing up their teams to focus on other important areas of the business. Furthermore, by leveraging the specialized expertise of global providers, businesses can reduce their risk of compliance-related issues and penalties, which can have a significant impact on their bottom line.
Data security and privacy
In today’s digital age, data security and privacy are critical considerations for businesses operating in any industry. With the increasing prevalence of cyberattacks and data breaches, it is essential for businesses to take a proactive approach protecting employee data, including payroll information.
Global providers are well-equipped to manage data security and privacy, with the resources and expertise necessary to implement robust security measures and comply with local data protection regulations. This can include implementing strong access controls, encryption, and multi-factor authentication to protect sensitive data from unauthorized access.
In addition, a global payroll solution can provide businesses with detailed information on the protection laws and regulations in each country or region where they operate, helping businesses to stay compliant and avoid costly fines and penalties. By outsourcing payroll to a global provider, businesses can benefit from the peace of mind that comes with knowing their data is secure, while also minimizing the risk of data breaches and other security incidents.
The top 5 global payroll processing providers in 2022
These are the best international payroll providers that we think are knocking it out of the park in 2022.
Deel: the rising star in payroll services
Deel is a rising star in the payroll service provider industry, offering comprehensive global payroll solutions. Founded in 2018, Deel has quickly gained popularity among businesses of all sizes and industries, thanks to its innovative technology, user-friendly payroll platform, and excellent customer support.
One of the key features that sets Deel apart from other providers is its all-in-one platform, which allows businesses to manage payroll, compliance, and international contractor payment to the right bank accounts all in one place. This makes it easier for businesses to streamline their operations and ensure compliance with local regulations.
Deel also offers a range of customizable payroll solutions to meet the unique needs of businesses of all sizes. Whether a business needs basic payroll processing or more advanced services such as tax compliance and benefits administration, Deel has a solution to meet their needs. Additionally, Deel’s platform is available in multiple languages, making it accessible to businesses around the world.
Another factor that has contributed to Deel’s success is its easy to use platform. The platform is intuitive and easy to navigate, with a dashboard that provides insights into payroll and compliance metrics. This makes it easier for businesses to pay employees and contractors and manage their payroll operations, while also providing a positive user experience for employees.
Deel also has an excellent reputation for customer service, with a team of dedicated experts available to provide support and guidance to businesses at every step of the payroll process. This has helped to build trust and loyalty among Deel’s customers, who appreciate the personalized attention. They have quickly become one of the best international payroll services.
Remote: Employer of Record (EOR) meets Human Capital Management (HCM)
Remote is a leading provider of Employer of Record (EOR) services, offering a unique solution that combines EOR with HCM software. This innovative approach to payroll has earned Remote a reputation as one of the best international payroll providers looking to run a payroll process and compliance for their international workers.
At its core, Remote’s EOR service allows businesses to outsource their payroll responsibilities to a third-party provider. This means that Remote becomes the legal employer of the workers, they assume responsibility and take care of compliance with local labor laws and regulations, while the business maintains control over day-to-day operations.
Remote’s HCM software, on the other hand, provides businesses with a comprehensive suite of tools to manage their global workforce. The software includes features such as time tracking, benefits administration, compliance management and other payroll processing solutions, making it easier for businesses to manage their operations more efficiently and effectively.
Remote offers customized employment contracts, support when using contractor tools, specialized protections for your intellectual property and invention rights, and more
One of the key benefits of Remote’s combined EOR and HCM approach is that it allows businesses to access a wider range of payroll services, without the need to engage multiple providers. This streamlines the payroll process, reduces costs, and minimizes the risk of errors or compliance issues.
Globalization Partners: industry heavyweights in EOR partnership
Globalization Partners offers some of the best EOR partnership services on the market, with an impressive customer satisfaction rating to match. Founded in 2012, the company has rapidly expanded to become a leading player in the global payroll solutions space, offering a range of EOR and related services to businesses of all sizes and industries.
One of the key factors behind Globalization Partners’ success is its focus on building strong partnerships with businesses looking for a payroll solution to expand their international workforce. Globalization Partners works closely with its clients to understand their unique needs and goals, and to provide tailored solutions that meet those needs.
Globalization Partners offers a comprehensive suite of EOR services, including compliance management, payroll processing, benefits administration, and risk management. By assuming responsibility for compliance with local labor laws and regulations, Globalization Partners enables businesses to focus on their core operations and growth strategies.
Another factor that sets Globalization Partners apart from other EOR providers is its proprietary technology platform. The platform offers a range of features designed to streamline payroll and save time, including an intuitive dashboard, real-time data analytics, and customizable reporting tools.
Oyster: remote-first in over 180 countries
Oyster makes the world, well, your oyster! With an impressive network of entities covering over 180 countries, Oyster lets you onboard global talent quickly and easily as a reputable EOR. The company’s focus is on providing seamless, compliant, and efficient payroll and HR services for remote-first and distributed teams.
One of the key advantages of Oyster’s remote-first approach is that it allows the company to tap into a global talent pool, resulting in a diverse and highly skilled team that can offer local expertise to businesses operating in various countries.
Oyster’s team consists of professionals with extensive experience in HR tools, payroll, compliance, and employment law, ensuring that clients receive expert advice and support no matter where they operate.
Oyster’s payroll and HR solutions are designed to be flexible and scalable, enabling businesses of all sizes to pay employees and manage their international workers with ease. The company’s platform offers a range of features, including automated payroll processing, benefits administration, and compliance management, all of which are accessible through a single interface.
One of the most notable aspects of Oyster’s service is its commitment to compliance. The company takes compliance seriously and ensures that all payroll and HR processes are fully compliant with local labor laws and regulations. This helps businesses to avoid costly penalties and legal issues, and provides peace of mind that their international employees are being managed effectively.
Playroll: veteran talent, fresh strategy
Needless to say, we’re taking notes at Playroll. We know our corner of the SaaS world and we’re driven to provide a payroll solution to every challenge. We’ve spent 25 years building our fully-owned global employment infrastructure as part of the VAT IT Group, which services half of all Fortune 500 companies.
That’s one of the reasons Playroll is so well positioned to navigate global payroll, at exactly the time when international payroll services are needed the most. We’re not an HRIS platform that doubles as an EOR. Instead, we focus on opening doors for you to hire international employees and pay international contractors anywhere you like, and stay compliant with local regulations throughout the relationship.
Our payroll service platform offers a range of features, including automated payroll processes, benefits administration, compliance management, and more. The platform is easy to use and provides businesses with live access to their data. This enables businesses to stay up-to-date with their HR and playroll operations and make informed decisions about their international employees.
And while we offer a cutting-edge platform that provides state of the art data analytics and enterprise resource planning, we also understand the need for balance: we provide human support to help our clients make the most of our platform.
Friction-free global expansion
If you’re looking for global payroll solutions to kickstart your global expansion, there’s really only good news. With a wealth of the best international payroll service to choose from, you’re in a position to sift them all to find a solution that fits your needs.
Expanding your business globally can be an exciting prospect, but it can also be a complex and time-consuming process. From navigating local labor laws and tax regulations to managing a remote workforce, there are many challenges that businesses must overcome to achieve success on the global stage.
At Playroll, we understand these challenges and are dedicated to providing businesses with a friction-free solution to global expansion. Our platform offers a range of features and services that make it easy for businesses to manage their international employees and comply with local regulations.
One of the key features of our platform is that its automated. Our platform enables businesses to process quickly and accurately, regardless of where their employees are located. This eliminates the need for businesses to navigate complex payroll regulations and ensures that their employees are paid on time, every time.
If you’re considering Playroll as your EOR or contractor management partner, it’s time to put us through our paces. Let’s talk about how we can power this new, exciting phase in the life of your small international business or large enterprise, for 2022 and beyond.