How To Handle Remote Employees' Payroll
More and more employees are working remotely. As technology improves, it is becoming easier and easier to work from home, or at least out of the office. Dealing with a remote employee payroll brings a new set of challenges including; saving money while paying over multiple geographic regions, complying with local and tax laws, and keeping track of employee hours.
Paying Over Multiple Geographic Locations
Paying employees or contractors in different locations can be challenging, especially if they are in different countries with different currencies. There are exchange rate fees, transfer fees, and issues with sending and receiving payments. As the payer, you want to minimize any fees and find the easiest way to send and receive money. There is also the issue of local laws regarding paying employees or contractors and taxes.
Local and Tax Laws
Local laws regarding payment of employees or contractors will vary; the same is true for tax laws. The common theme is that governments want to make sure they control the flow of money and get their piece of it. How they go about this is different from place to place, but as a payer you have to comply with these laws to avoid penalties to you or your payees.
Keeping Track Of Remote Employees' Work Hours
Depending on the type of work arrangement you have set up with an employee or contractor, this can get complicated. When work is paid on a time basis you have to have a way of keeping track of time units. Project based work is a easier to deal with since the time units don't matter.
Automated is good when it's dependable and available. If you are paying a payee at regular intervals then you can automate your payment process. Project payments vary, so these are not easily automated.
Simplifying the Confusion
There is a lot to deal with just to pay someone for their work. There is help, however, that can take the burden off you and allow you to focus on your business instead of worrying about how to pay your people. Payroll companies handle all of these employee payroll services. They make it easy for you to do payroll and get on with other business.
There are both local and online employee payroll companies. Either one can work, but you want to find a company that has experience with your industry and payee situations. For example, if you have people to pay in India and your company is located in the US, you want a company familiar with the best ways to do this.
Payroll can be complicated when dealing with remote employees, often it's worth it to pay for payroll roll company and save yourself the headache.