Avoid The Headache With International Contractor Payroll Solutions
Using international contractors opens the doors to a much wider talent pool than at home. However, the taxes, regulations and payroll details for your own country are complicated enough. Are you really ready to take on the ins and outs of another country? While it does stop some employers from hiring their dream contractors, it doesn't have to be as complicated as it sounds.
You have several options for handling international contractor payroll. The first and probably the one you default to is to handle everything yourself. After all, it couldn't be that hard especially if you use a payroll software that covers multiple countries. Wrong. If you miss a single detail, you could end up spending much more than the total cost of employment on fines and penalties. Not to mention, the time taken to incorporate a local entity or register your company to process payroll as an overseas based employer.
The second option is to work through international payroll or contractor management solutions that handle everything concerning payroll. You inform them of the terms of the contract and they will give an exact quote with detailed payroll calculation. They ensure that the contractor is bound by any terms or special conditions in their services agreement. You receive a bill from the umbrella company and they pay the taxes and social contributions. Once paid, they pay the contractor minus their own fee. They also hold all the necessary insurances and certifications required to run a payroll within the country. They take on the burden of understanding what individual countries require and keep that knowledge up to date, so you don't have to. It takes the pain out of setting up international payroll and allows an easy transition to bringing payroll back in house should that be required in the future.
Unless you truly know how payroll works in other countries, it is in your best interests to use an experienced third party solution for international contractor payroll. But this raises the issue of how to select an International Payroll Provider? We recommend using one of our vetted partner companies. You will be assured of
- reliable processing
- excellent customer service through a dedicated account manager
- full compliance with local tax and employment legislation
- no hidden or surprise costs
- accurate and timely quotes
- detailed payslips and reporting