Businesses around the globe were thrown into a reactionary tailspin this past spring, dusting off dated business continuity plans or coming up with innovative procedures to accommodate the new way of working. Steve Thompson - from TransferMate Global Payments - explores solutions to make the international payroll process more effective.
While some businesses had systems to manage the COVID, most were looking for different solutions for their suddenly remote global workforce. For those managing international payroll, our new world is creating challenges, but those challenges can be met with solutions that make original processes more reliable and cost-effective.
The process of international payroll has its own challenges without a global pandemic. The complexity of payroll becomes greater when a company is dealing with unique international withholding and income taxes, social insurance and deductions, compliance and tax authorities. That doesn’t even include the actual delivery of payroll, which can take on various forms – some better than others.
Payroll processors complete 40 per cent of payroll payments in the U.S., according to CFO.com. Payroll processors who can often take the headache out of managing multiple offices and varied workforces. However, when it comes to international payroll, foreign exchange capabilities with local delivery in multiple countries is not something many payroll processors can offer.
By using an international payments firm – like TransferMate Global Payments – that can standardize funds flow globally for payroll, companies can save thousands of dollars on reduced bank fees and FX markup. There is complete compliance with each country and allows the payroll to be transferred to the recipient locally in their country. There are also a series of ways companies can automate the process and reduce administration time. Without one firm managing international payroll, a company must manage bank accounts and legal processes in multiple countries or have separate agencies to do the work in each country.
During COVID-19, a series of new complex support grants and tax deferments have added another level of complexity. Each jurisdiction is operating in its own environment related to the global pandemic.
Initially, organizations were looking for ways to move away from some physical processes as employees became remote workers. Companies needed to reevaluate their IT infrastructure, access to data, staff availability and the releasing of bank payments, when it came to payroll. Now, companies are looking for ways to improve processes and keep costs low.
There are many ways companies can streamline international payroll. With TransferMate, companies are able to fund from their existing local currency and transfer to the employees’ bank accounts in their currencies. This eliminates bank account maintenance and creates a globally standardized process. Payments are automatically reconciled and tracked, so there is complete accuracy and the full value is received on time. For many organizations, transfers can go missing or there is unintended lost revenue related to payroll activity. The cost of payroll leakage is as high as 2.5 per cent of labour costs, according to a study by Deloitte.
The international payroll solution from TransferMate, companies can automate their payroll with the company’s payments technology. It even integrates with many existing systems. Global payroll from TransferMate eliminates time delays and multiple parties in the critical path. Instead, there are same-day transfers and no bank fees. The full salary is received on the correct date with no discrepancies, saving payroll staff tremendously.
For more information on payroll solutions from TransferMate, visit the company’s global payroll solutions page.
Businesses around the globe were thrown into a reactionary tailspin this past spring, dusting off dated business continuity plans or coming up with innovative procedures to accommodate the new way of working. Steve Thompson - from TransferMate Global Payments - explores solutions to make the international payroll process more effective.
While some businesses had systems to manage the COVID, most were looking for different solutions for their suddenly remote global workforce. For those managing international payroll, our new world is creating challenges, but those challenges can be met with solutions that make original processes more reliable and cost-effective.
The process of international payroll has its own challenges without a global pandemic. The complexity of payroll becomes greater when a company is dealing with unique international withholding and income taxes, social insurance and deductions, compliance and tax authorities. That doesn’t even include the actual delivery of payroll, which can take on various forms – some better than others.
Payroll processors complete 40 per cent of payroll payments in the U.S., according to CFO.com. Payroll processors who can often take the headache out of managing multiple offices and varied workforces. However, when it comes to international payroll, foreign exchange capabilities with local delivery in multiple countries is not something many payroll processors can offer.
By using an international payments firm – like TransferMate Global Payments – that can standardize funds flow globally for payroll, companies can save thousands of dollars on reduced bank fees and FX markup. There is complete compliance with each country and allows the payroll to be transferred to the recipient locally in their country. There are also a series of ways companies can automate the process and reduce administration time. Without one firm managing international payroll, a company must manage bank accounts and legal processes in multiple countries or have separate agencies to do the work in each country.
During COVID-19, a series of new complex support grants and tax deferments have added another level of complexity. Each jurisdiction is operating in its own environment related to the global pandemic.
Initially, organizations were looking for ways to move away from some physical processes as employees became remote workers. Companies needed to reevaluate their IT infrastructure, access to data, staff availability and the releasing of bank payments, when it came to payroll. Now, companies are looking for ways to improve processes and keep costs low.
There are many ways companies can streamline international payroll. With TransferMate, companies are able to fund from their existing local currency and transfer to the employees’ bank accounts in their currencies. This eliminates bank account maintenance and creates a globally standardized process. Payments are automatically reconciled and tracked, so there is complete accuracy and the full value is received on time. For many organizations, transfers can go missing or there is unintended lost revenue related to payroll activity. The cost of payroll leakage is as high as 2.5 per cent of labour costs, according to a study by Deloitte.
The international payroll solution from TransferMate, companies can automate their payroll with the company’s payments technology. It even integrates with many existing systems. Global payroll from TransferMate eliminates time delays and multiple parties in the critical path. Instead, there are same-day transfers and no bank fees. The full salary is received on the correct date with no discrepancies, saving payroll staff tremendously.
For more information on payroll solutions from TransferMate, visit the company’s global payroll solutions page.