Many people think that outside payroll services are unnecessary, but it’s common for business owners, corporate leaders, and operations managers to overlook the potential complexity involved in corporate payroll services. For example, companies working in the infrastructure, process, or energy fields must often go where there is work. Bidding on contracts and projects in a number of different countries at the same time is relatively common, but it also creates the potential for all kinds of complications and issues related to accurate payroll services and international law compliance.
Whether your company relocates existing staff to remote work sites or hires local talent and mobile contractors for each individual project, compliance is always a concern. Your company can’t afford to make big mistakes when it comes to paying staff or withholding and paying employment taxes. Mistakes in these areas can damage your reputation with potential clients as well as with your staff or contractors. It can also cost you money in the form of fees, fines, or penalties. Working with a full service payroll company can help reduce the chances of an expensive mistake impacting your work.
No matter how skilled and experienced your internal accounting or payroll department staff may be, they likely only have experience with and knowledge of the laws in the country where you base your operations. Even those who have some experience with international payroll will likely only know the laws in a few countries outside their home nation. International payroll can become complicated very quickly. After all, each country has its own laws regarding employee pay and taxation. If your company relocates staff to various project sites within one location or multiple countries, tax requirements can quickly become complex.
Typically, the country where your staff claims citizenship and the country where you complete each project will require the payment of payroll taxes. Proper withholding and payment is essential to compliance with these laws. Failure can mean increasing your tax burden, leaving your workers with unpaid taxes or legal action if you do not quickly correct mistakes or oversights. These are just a few issues why many companies that work internationally secure the help of payroll service providers. The best payroll service companies can ensure compliance wherever you are working.
Needing to learn the legal requirements of a new country’s tax regulations every few weeks can prove to be quite stressful. Confusion and oversight could each cause a host of issues for your company, your workers, and your financial future. Choosing to work with a company that understands tax laws and payroll regulations for the countries where you operate is key to ensuring ongoing compliance and the ability to attract and retain the best workers and contractors.
At Airswift, full service payroll is just one of many managed services and solutions we provide. Our team of experienced professionals are spread across more than 60 offices worldwide, and they the local knowledge and industry insight to ensure payroll compliance for your business locations.