Author: Marco Pasqualin

Global Payroll Manager

An 8-Step International Payroll Set-up Guide

While the rise of mature tooling and services have enabled companies to more easily collaborate and create value with distributed teams than ever before, a legal and compliant remote work setup needs much more than great communication tools. We have already shared what are some of the employment challenges with remote workers and why hiring them as independent contractors is a bad idea in the long term. The only viable long term solution is legally employing them and establishing international payroll processes. In this post, we offer an 8-step “Do-It-Yourself” guide to setting up international payroll operations for your company.

Five areas of international payroll you need to understand

five areas of international payroll to understand

Irrespective of where in the world it's done, payroll is the process and system by which a company pays its employees, pay period in and pay period out. It involves keeping employee financial records, calculating their paycheck taking wages, taxes, tax credits, allowances, and benefits-in-kind into consideration, and issuing those paychecks. Regardless of where the company or its employees are based, every employee must receive the accurate pay (and payslip) with all withholdings and deductions submitted to the local tax authorities. Here is what you need to understand about international payroll