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How to process global payroll

Making accurate payments to your employees on time is an essential work function. It is crucial that it directly influences your workers’ productivity and commitment to the organization’s vision and goals. As the workforce is undoubtedly an important arm of every organization, their salaries can be described as the fuel that drives their daily operations and a productivity boost.

Payroll processing is an essential business function in every organization, regardless of its size. However, the way global payroll processing is handled varies across different organizations. Therefore it is important to fully understand global payroll processing and how it can be optimized in your organization.

This article highlights the different stages in processing payroll.

What is a Global payroll process?

Global payroll processing is a crucial business activity that involves multiple steps to ensure that an employee’s salary is accurately calculated, systematically tracked, and paid while withholding the right deductions for taxes and company benefits. In other words, the global payroll process is every action resulting in an employee receiving their net pay after the organization handles the statutory deductions.

The global payroll process can be handled manually or automatically using a global payroll solution. However, global payroll processing is challenging and tedious because it involves crucial calculations of employees’ salaries, tax filing, monitoring employees’ work period records, and ensuring payroll compliance in different countries. Therefore, while it is beneficial for organizations to partner with global payroll solutions like Skuad, it is important to understand the different steps involved in the global payroll process.

Stages in global payroll processing

Different stages come into play when you plan to establish a global payroll process. Therefore, it is essential to understand the stages and the steps to not miss out on essential payroll operations. For example, in the first stage of global payroll processing, collating some documents is key to unlocking payroll processes, but without collating, it can be detrimental. Thus, these global payroll processing stages can be divided into three.

First stage

The first stage of global payroll processing involves the pre-payroll activities involved in employees’ receiving their salaries. This stage involves the following steps:

Crafting an organizational payroll policy

Before attempting to pay employees, it is necessary to have a defined payroll policy that governs how you pay employees, the work hours attendance policies, leave policies, and benefits administration.

Collecting employee information

After a defined payroll policy, a crucial step is to have documented information about your employees. This information includes their tax information, eligibility to work from their country of residence, and every country-specific or state-required document.

Establishing pay periods

Every organization operates and determines the pay schedules that work for them and provides this information to their employees. However, monthly, bi-weekly, and weekly pay periods are common for most organizations. Whichever pay frequency schedule your organization uses, it is essential to communicate this information to your employees.

Second stage

The second stage of global payroll processing involves the actual payroll processing of employees’ salaries. It involves everything that results in the employees receiving their salaries, like payroll calculations, tracking work hours, and utilizing a global payroll solution to automate the processes.

Payroll calculations

The organization can calculate an employee’s salary with the necessary statutory deductions using the above information. However, for an organization to carry out accurate payroll calculations, having in-depth knowledge of the necessary deductions is important. Therefore, the employers or HR must carry out due diligence before sending out the employee’s net pay.

Payroll compliance

Managing a global remote team means having a workforce comprising employees from different countries. Therefore, global payroll processing will require the employer to comply with the different employment and payroll laws of the countries of employment.

Managing global payroll compliance can be challenging as laws evolve, and keeping tabs on multiple countries’ laws is difficult. However, it is a crucial payroll practice, and every global organization must find a way to simplify the process.

Pay employees

After calculating payroll, nothing is left other than to pay the employees. Organizations can choose to pay employees via direct deposits, pay cards, printed checks, or a third-party platform. Whichever payment method works best for the organization, it is essential that the employees receive accurate and timely payments.

Using a global payroll solution

A global payroll solution integrates and automates your payroll processes so that your organization can carry out global payroll processing without recording errors and reduce the burden of global payroll compliance for your workforce. In addition, a global payroll solution ensures payroll activities are precise, timely, and consistent with HR data.

Choosing Skuad as your global payroll solution

Skuad is a global payroll solution that allows your organization to handle global payroll processing efficiently. Skuad’s platform lets you easily integrate your global payroll functions and quickly process them for your global team.

By automating and integrating payroll activities with Skuad’s global HR platform, you can handle global payroll processing and take advantage of the following benefits:

  • Skuad’s global payroll platform enables organizations systematically automate and handle global payroll processing on time and accurately. With Skuad, you can administer benefits, file taxes, and provide payslips for your remote team from Skuad’s powerful dashboard.
  • Skuad allows organizations to pay employees in multiple currencies and the currency of their choice.
  • Skuad helps your organization streamline global payroll processing with ease. You can centralize your remote team’s payroll process via Skuad’s global HR platform.
  • Skuad helps organizations manage and handle compliance in most countries in the world.
  • Skuad provides world-class benefits for your contractors and employees in over 160 countries.

Book a demo with Skuad to know more.

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