Companies hiring across borders gain access to a broader range of talent. However, one issue that crops up is how to efficiently and compliantly pay a global team with employees scattered worldwide.
It may seem simple, but many nuances go into managing international payroll, including fluctuating currency rates, potential accounting errors, etc. As a result, many businesses turn to multi-country payroll software as their global payroll solution.
Below, we’ll provide an overview of how a global payroll system compares to an Employer of Record and spotlight a few multi-country payroll providers capable of running payroll for international teams.
First, here’s a brief overview of the global payroll provider platforms we’re highlighting, their primary value prop, and pricing for their global payroll services.
What’s the Difference Between Multi-Country Payroll Software and an EOR?
The primary difference between multi-country payroll software and an Employer of Record is the scope of services each offers for managing global employment.
Multi-country payroll software is a payroll tool that helps companies pay staff on time in different countries while ensuring compliance with local laws, tax regulations, and reporting requirements. It automates salary payments, tax calculations, and compliance with local employment laws, but the company remains the legal employer of the workers.
The software streamlines payroll processing, ensuring employees are paid in their local currencies while helping maintain compliance with varying tax laws, benefits, and reporting requirements.
An Employer of Record (EOR) is a third-party service provider that functions as the legal employer of a company’s employees in countries where the company doesn’t have a legal entity.
The EOR handles payroll, employment contracts, compliance with tax laws, benefits, and HR duties. It allows businesses to hire in countries without setting up a local entity, transferring all legal and administrative responsibilities to the EOR.
TL;DR: Multi-country payroll software assists with international payroll processing, while an EOR provides a more comprehensive solution by acting as the legal employer for global employees (which often includes payroll capabilities as well).
Comparing Multi-Country Payroll Software Providers
Remote
Remote is an all-in-one solution that enables companies to pay staff and contractors in multiple countries through a centralized payroll management system.
The Remote platform handles international payroll, benefits, taxes, and compliance across numerous countries.
Remote offers a flat-rate pricing model of $50 per employee/month for payroll services and $29 per contractor/month.
Deel
Deel's locally owned entities enable it to offer global payroll services, including monitoring and flagging payroll regulatory changes. The company provides options for advances and facilitates secure and fast transactions for global workforce management.
The self-serve interface allows employees to update withdrawal details and managers to oversee total payroll spending via Deel’s self-serve interface.
Deel international payroll starts at $29 per employee/month, and U.S. payroll begins at $19 per employee/month.
Multiplier
Multiplier partners with local payroll providers and tax experts in 150+ countries to ensure compliance with local payroll and tax laws. The company can process payroll in over 120 currencies.
Global payroll service starts at $40 per contractor/month. Companies must speak with the Multiplier sales team for global payroll pricing for employees.
Oyster
Oyster provides fully compliant global payroll services, including automatic local deductions, taxes, and contributions.
Oyster allows companies to pay international employees or independent contractors in their local currency and reimburse them for out-of-pocket expenses.
The software integrates with several HRIS systems, including BambooHR, Greenhouse, HiBob, and Workday.
Global payroll services start at $25 per person/month.
RemoFirst
RemoFirst’s payroll platform streamlines international payroll for globally distributed teams. RemoFirst pays employees in their local currencies while summarizing and consolidating invoices into a single payment.
Additionally, RemoFirst’s software automatically calculates a team’s hours, time off, holidays, bonuses, and commissions. This means human resource teams only need to review and approve one monthly invoice for payment.
Global payroll services start at $199 per person/month and include full Employer of Record services. This includes assistance with hiring employees and additional HR services such as onboarding, managing employee benefits administration, and more.
There is a free tier to manage contractors, and starts at $25 per person/month to pay contractors through the RemoFirst platform.
There are no minimums, making it easier for startups and small businesses to scale as needed.
What Questions Should I Ask When Choosing a Multi-Country Payroll Software Provider?
When choosing a multi-country payroll service provider, you’ll want to confirm the service meets your business needs. Some questions to ask include:
In Which Countries Do You Offer Payroll Services?
First, you’ll want to confirm that the provider supports payroll in all the countries where you operate or potentially plan to expand. Ask if there are any limitations on the regions they cover.
How Do You Ensure Compliance?
Confirming a software provider’s compliance capabilities with local tax laws and labor regulations, as well as reporting requirements in each country where they offer payroll services, is essential.
You’ll also want to confirm they update their system regularly to reflect changes in regulatory laws.
Does Your Payroll Software Support Integrations?
For some businesses, the ability of the payroll software to integrate with their current HR software, accounting, and time-tracking systems is a deciding factor.
How Many Currencies Do You Work With?
Find out which currencies the provider can use to process payroll and how exchange rates and currency conversions are managed.
Another good question to ask is if there are options for paying employees in their local currencies.
How Do You Protect Data?
Ask how the provider protects sensitive payroll and employee data, as well as encryption and privacy protocols.
This is important when operating across multiple jurisdictions, especially those the GDPR covers.
What is Your Pricing Model?
Check on each company’s cost structure. For example, are fees charged per employee, per payroll cycle, or based on specific services? Are there any hidden costs, such as additional fees for compliance updates?
How User-Friendly is Your Product?
It’s essential to understand what the user experience will be like for both your payroll team and your employees. For example, is there a centralized dashboard for managing your entire team’s multi-country payroll in one place?
What is Your Level of Customer Support?
Some other follow-up questions to ask include:
- Is there dedicated support for each country?
- What is the availability of Customer Support agents to answer real-time questions across multiple time zones?
Which Multi-Country Software is Right for Your Business?
The answer depends on what features are most important to you.
- Remote features support from in-house local payroll experts.
- Deel offers multiple withdrawal options.
- Multiplier has a user-friendly interface.
- Oyster integrates with many common HRIS platforms.
- RemoFirst offers the lowest pricing, plus EOR services in 180+ countries.
Ready to learn more about how RemoFirst can make it easier to run your business?
