What is global payroll?
Global payroll, or international payroll, is a system that enables companies to pay their workers in multiple locations around the world.
Why do companies need global payroll?
When companies have remote employees, contractors, or freelancers who are distributed across the world there are several legal and logistical complexities that come into play, for example:
- local employment laws
- local taxes
- time zones
- working hour agreements
For two or three countries, a company may just be able to work out a solution to pay employees compliantly, but with several workers across several countries, a global payroll solution is often the easiest option.
How does global payroll work?
There are a few different ways in which companies can set up global payroll, including:
Employer of Record (EOR) or Professional Employer Organization (PEO) services
Using EORs or PEOs is a way to outsource HR functions. With an EOR the service is essentially the employer whereas, with a PEO, you legally remain the employer while the PEO handles aspects of HR, like payroll. Find out more about the differences in our guide to employment models.
Many companies opt to use EORs and PEOs set up in foreign countries where their workers are based to handle local payroll. Since these entities are based in the localities where your workers operate, they are experts in local employment laws and taxes and can process payroll compliantly on your behalf without the stress of handling it on your own.
In-house global payroll
This option requires the company to either set up entities in multiple different countries and run payroll directly from those locations, or set up centralized payroll with in-house experts who handle the compliance issues themselves.
Does Oyster offer global payroll?
Oyster offers payroll for your team members in foreign countries and much more. Oyster operates as a hybrid EOR, meaning we both:
- operate in most countries as a global employment consulting company
- formally employ team members (employees and contractors) around the world to provide services for our customers who are looking to expand and diversify their teams
Oyster is responsible for all aspects of these team members’ employment, including global payroll, registrations, insurance, pensions, employment contracts, remote work agreements, bonuses, vacations, separations, and severance; in short, the whole employee lifecycle!
We help companies bridge the gap, and we do it compliantly in just minutes. Find out more about payroll with Oyster.
Disclaimer: This article and all information in it is provided for general informational purposes only. It does not and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.