Global payroll services let you hire and pay anyone, anywhere — without the headache. Read our guide to learn more.
Is your contractor payroll working for you?
Keeping on top of invoices from multiple vendors and ensuring everyone gets paid on time can be tricky. And if your workers are international, there’s a whole other world of compliance, reporting and tax obligations to think about. Whether you just have a handful of contractors or thousands, we can help — in more than 100 countries worldwide.
What is global payroll?
Global payroll is the process of calculating and paying a worker’s salary when they’re working in a different country from your HQ. It involves withholding taxes, calculating benefits and bonuses, and transferring funds to your workers across a variety of countries in their local currencies.
At CXC, we provide payroll services to all kinds of clients, from those with just a handful of remote workers living abroad to those that need to manage a whole workforce across several countries. We also provide in-country payroll services to those organisations that don’t have an international component but still need help managing payroll for their contractor workforce.
How does global payroll work?
When you manage international payroll in-house, you need to have a legal entity in every country where you have workers. You also need a strong understanding of local laws, regulations and payroll customs. Most companies don’t have these things — so they use external global payroll solutions instead.
An employer of record (EoR) is a company that hires employees on behalf of its clients. That means that if you use an EoR to manage your global payroll, it will be your workers’ legal employer.
Using an EoR is a popular solution for companies expanding their operations overseas (or hiring remote employees) since it allows them to pay workers without the…
An Agent of Record (AoR) is an employment solution that helps organisations to manage and pay independent contractors.
When you find a contractor you’d like to work with, the AoR will enter into a master services agreement with them and create a Statement of Work (SOW) that defines the services they’ll provide.
Then, the contractor will provide you…
A Professional Employment Organisation (PEO) is a type of global payroll provider that’s typically used in the US.
Because employment laws and requirements vary significantly between states, many organisations choose to use PEOs to compliantly pay their remote workers.
There are also International Professional Employment Organisations (IPEOs).
Want to learn more or need help?
Challenges of paying workers internationally
Paying your international workers can be a tricky business. Here are some of the challenges you should be aware of if you’re expanding overseas or considering hiring remote workers in another country:
Should you pay everyone the same salary regardless of their location, or take local living costs into consideration? Should you account for government benefits that apply in one location but not another? Setting the compensation you’ll pay your international remote workers isn’t impossible — but it does take some thought.
Employers usually have to withhold taxes for their employees. But how much? How does it work? And what about contractors or other non-permanent workers? If you have workers in several countries, things can get complicated, fast. Working with a global payroll provider can help you to make sure you’re operating compliantly.
Worker classification challenges
Different countries have different ways of defining who’s an employee and who’s a contractor — and it’s important to get this right. If you don’t, you could face fines, penalties and even legal consequences. Hiring workers overseas means you need to review your worker relationships regularly — something that a global payroll provider could help you with.
Do you know who owns the intellectual property when a remote employee produces their work overseas? If you don’t, you should — but the law is different in every country. Working with a global payroll provider can help you to protect your IP.
Payroll customs and labour laws
In some countries, employees are paid their salary in 13 instalments, not 12. In some, it’s 14. And in others, it’s customary for employees to be paid every week or every two weeks, instead of once a month. Local workers will expect you to know and understand these customs — or work with a partner who does.
Permanent establishment risk
Do you know if you’re at risk of permanent establishment? If you have a stable, ongoing and significant presence in a country, you could be — which could mean you’re liable for local corporate taxes. Working with a global payroll provider with a deep understanding of the law can help protect your organisation.
Compliant payroll in 100+ countries
We operate through a vast network of legal entities around the world. That means we can help you hire and pay workers almost anywhere.
Full IP ownership
We provide strict governance and control measures to make sure your intellectual property is protected — wherever your workers are.
Effective risk mitigation
Our team are experts at minimising exposure and keeping your business safe from worker misclassification, tax non-compliance, permanent establishment and more.
Team of global experts
Our global network of HR specialists, labour law experts and dedicated partners know their stuff. If you’ve got questions about compliant global payroll, we’ve got the answers.
Fast, flexible, seamless payroll
No more getting held up by complex international banking regulations or confused by local payroll customs. Your workers will be paid on time, every time, in the way they expect.
Consistent worker experience
CXC can handle everything from onboarding to managing to paying your international workers — giving them a consistent experience from start to finish.
Global payroll solutions from CXC
At CXC, we understand the challenges involved in global payroll. We also understand the importance of expanding your business, tapping into new markets and hiring the best remote workers, wherever they are.
That’s why we’re committed to making international payroll as smooth and seamless as possible for our clients and their workers.
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If you’re interested in seeing what CXC can do for you, or if you have any questions about how to improve your contingent workforce program, please contact us today.