The Ultimate Guide to Payroll Outsourcing

Payroll outsourcing is one option for paying workers in a domestic or foreign location through use of a third-party payroll provider. We have put together this quick guide to payroll outsourcing, to outline the pros and cons and the main reasons to outsource your payroll for employees on assignment.

Mar 11, 2019
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Payroll outsourcing is one option for paying workers in a domestic or foreign location through use of a third-party payroll provider.  We have put together this quick guide to payroll outsourcing, to outline the pros and cons and the main reasons to outsource your payroll for employees on assignment.

What is Payroll Outsourcing?

Payroll outsourcing is simply the use of a service provider to handle the administrative and compliance functions of paying employees.  It is important to note that payroll services are only that, and do not offer a local employer of record for the foreign company.  This means that local incorporation is still required, and the other aspects of employing workers must be handled DIY or by other experts.

When to Outsource Payroll?

The question of when to outsource payroll depends on several factors, such as number of employees on assignment, whether a company has a local entity and the complexity of the host country laws regarding employment and withholding.  In many cases, the time and cost of setting up and administering a local payroll cannot be justified, so the payroll functions are outsourced to another host country firm.

While many small businesses routinely use payroll outsourcing, larger companies can also benefit from this service when sending workers on international assignment to a new market...read more

Shield GEO makes international employment simple. Our customers use Shield GEO to employ and payroll hundreds of workers in over fifty countries. Find out more. 

Tim Burgess

Director, Shield GEO Services Ltd

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