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2023 Payroll Outsourcing Guide

CXC Global4 Lectura rápida
CXC GlobalApril 28, 2023
CXC Global

In today’s global business landscape, remote work is no longer new. It has become the norm for many companies to hire contractors or consultants from all over the world. 

Sure, this has many advantages—accessing global talent, improving productivity, and reducing overhead costs. However, the complexity of payroll regulations, tax requirements, and compliance obligations can be overwhelming. 

According to recent studies, the global payroll outsourcing market is estimated to grow at a CAGR of 7.2% from 2022 to 2031.  While Europe made up most of the share in 2021, the Asia-Pacific region is predicted to show the highest CAGR (at 9.7%) from 2022 to 2031. 

What does this mean? At the rate that payroll outsourcing is being adopted, it’s important for businesses in the APAC region to understand its benefits, challenges, and potential impact on their operations.

Payroll outsourcing 101: what is it?

Payroll outsourcing: delegating the management and processing of all global payroll functions to a third-party provider.
An external company will handle tasks such as:

  1. Calculating salaries and wages of all employees in different countries, whether full-time, part-time, or contractual
  2. Computation and withholding of taxes and other obligations
  3. Conducting the actual payouts and sending of payslips
  4. Ensuring that salaries and other benefits are compliant with local laws and regulations related to payroll and taxes
  5. Preparing payroll-related documents that governments might require

Here are the most crucial things you need to know about payroll outsourcing

Since payroll outsourcing is fairly new for some companies, it can be confusing at first. So we’ve consolidated the most crucial ones that can help you get up to speed quickly. 

Top benefits of payroll outsourcing

  1. Ensure compliance with local laws and regulations across multiple countries and regions.
    Laws and legislation in different countries are always changing. Constantly keeping up with thee can be the cause of a massive headache. It can be even more stressful if you’re hiring contractors in countries where you don’t have a legal entity.
    One miss, and the financial and legal repercussions can be unpleasant. The payroll outsourcing provider will stay up-to-date with the latest changes in laws and regulations, and will adjust your payroll processes accordingly.
  2. Get access to advanced software and technology that may be too costly to implement in-house.
    Outsourcing payroll management and processing gives you access to the high-end software that providers use.  Investing in the same software and managing it in-house can be more costly if you include set up, training, and the manpower needed to maintain it.
  3. Save time and resources that can be redirected towards other aspects of your business.
    Free up time and resources to focus on core business functions, such as strategic planning, product development, and marketing. Resources previously allotted for payroll processing and management, as well as being up to date on relevant laws in different countries, can now be dedicated to business functions that drive growth and profitability. It’s a win-win situation.
  4. Benefit from the expertise and support of an entire business that specializes in payroll outsourcing.
    Instead of your entire payroll being dependent on just one or two in-house staff, you have an entire business that will be accountable. This provides additional safety, security, and peace of mind that your payroll operations are running smoothly.
CXC Global Payroll Management Case Study

Here’s a short overview of the process

Once you decide to work with a payroll outsourcing provider, they will walk you through the process and next steps, but here’s how it usually goes:

  1. Alignment on payroll needs
    Some examples of the information that you will need to align on are the number of employees and contractors, the countries where you need to disburse payments to, frequencies of payouts, and other specific processes.
  2. Data collection and transfer
    Turnover of data and other documents will need to be done next, so your provider will have everything they need to start the process. Typically, they will need to migrate your data over to the software they use.
  3. Payroll processing
    The provider will then calculate taxes, deductions, and other expenses. They will also handle paychecks and deposits. You will agree on a timeline and a cadence for processing of related documents
  4. Tax filing and compliance
    All taxes and other payroll-related expenses will be processed by the provider. This also includes paying the contractors’ or employee’s contributions to other mandatory government agencies.
  5. Reporting and ongoing support
    Depending on your needs, your outsourced payroll provider will generate reports for you. They will also provide ongoing support for your questions and concerns. This also includes keeping you informed of any new regulations. 
CXC Global Payroll Service

Take the next step in growing your business and start outsourcing payroll management

The hiring landscape this 2023 will continue to focus on skills over degrees and hiring the best people for the job—regardless of location. As such, companies have their work cut out for them in juggling different countries’ payroll regulations. Not to mention taxes, documents, you name it.

Here’s the key takeaway: payroll outsourcing can be a game-changer for companies looking to streamline their operations and ensure compliance with payroll regulations

By partnering with a reputable provider like CXC Global, you can benefit from expertise, top-notch software, and support to handle your payroll processes with ease. CXC Global has experience managing payroll in over 65 countries—and our team includes legal experts who ensure that despite ever-changing regulations, your company will always be compliant

If you have any questions or are ready to start outsourcing your payrollcontact CXC Global today.


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En CXC, nuestro objetivo es el de ayudarte a ampliar tus negocios con soluciones flexibles y talentos tercerizados. Sin embargo, también entendemos que administrar una fuerza laboral contingente puede ser una tarea compleja, costosa y lenta. Mediante nuestra solución MSP, podemos ayudarte a que cumpla con todas tus necesidades de contratación, incluyendo empleados temporales, contratistas independientes y Trabajadores SOW. ¿Y si se cambian a tus necesidades? No hay problemas. Somos flexibles. Nuestra solución está diseñada para aumentar o reducir la escala para adaptarnos a las necesidades de nuestros clientes.

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