Employer of Record
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Employer of Record

What you should know before you outsource payroll

Outsourcing is a core business function and usually part of their global organizations’ business strategy. Payroll is one of the critical and commonly outsourced functions in every organization, regardless of size. According to the Internal Revenue Service, one in three organizations are charged for payroll errors, with the fines reaching billions of dollars. Also, with the ever-changing nature of payroll laws, it is easy to grasp why payroll errors are regular occurrences.

Therefore, organizations outsource payroll to eliminate or minimize the challenges of managing payroll in-house. This article highlights everything you need to know before outsourcing payroll.

What is payroll outsourcing?

Third-party platforms usually offer payroll outsourcing to enable organizations to pay employees and contractors, manage their payroll, handle global payroll compliance, administer benefits, and file taxes.

Organizations use the services of third-party platforms to carry out global payroll to save time and money, mitigate payroll errors, and eliminate the need for in-house training of payroll personnel.

Accounting firms usually handle payroll outsourcing, a dedicated global payroll company, or an Employer of Record platform. When an organization uses an Employer of Record, it acts as the legal employer on behalf of its employees, enabling the organization to hire contractors and full-time employees, onboard talent, manage payroll, and ensure compliance with the countries’ employment laws and tax regulations.

What to look out for before you outsource payroll

Knowing what to look out for before outsourcing global payroll will help you choose the right platform for your global payroll management. Here are a few tips to take note of:

The reputation of global payroll partner

A reputable global payroll partner will ensure you have peace of mind regarding the security of your payroll information. It is also best practice to check out for a global payroll partner with many years of experience providing outstanding services.


Payroll management involves handling people’s sensitive information such as social security numbers, full names, and bank account details. In choosing a global payroll partner, consider going for a third-party platform that takes security seriously.


The right global payroll partner should be on top of changing regulations. Handling global payroll involves dealing with country-specific employment laws and tax regulations.


One of the goals of outsourcing payroll is to save costs. Therefore, selecting the one whose price aligns with the organization’s budget is essential in choosing a global payroll partner.

Skuad as your Global Employment and Payroll Platform

Skuad is a Global Employment and Payroll platform that enables organizations to hire contractors and full-time employees in over 160 countries without setting up an entity or a subsidiary. Skuad also helps organizations onboard talent, pay employees, manage payroll, and ensure compliance with country-specific employment laws and tax regulations.

Skuad offers several essential offerings for organizations planning to outsource payroll.

  1. Skuad’s Global Employment and Payroll Platform enable organizations to pay employees in multiple currencies. With Skuad, organizations can accurately and quickly process payroll, and employees can receive payments in the currency of their choice.
  2. Skuad’s platform allows for efficient global payroll management for a global remote team. Also, Skuad enables employers to administer benefits, file taxes, and manage insurance with just a few clicks.
  3. Skuad ensures full compliance with the employment laws and tax regulations in over 160 countries.
  4. You can track payslips and invoices with just one click on Skuad’s global employment and payroll platform.
  5. Skuad grants you access to the best exchange rates in any currency for your payments and allows you to save on extra fee charges.

To know more about Skuad, book a demo today.



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Skuad PTE Ltd

Skuad PTE Ltd