Choosing an International Payroll Services Provider

Payroll management - 4993949

Organizations find that, as they venture into new overseas markets, it becomes ever more difficult, expensive, and tedious to comply with local regulations and laws. Remember that in each country, there are regulations that direct how businesses operate in that country. Some of these rules regard taxes, pay schedules, and withholdings. This leaves international businesses with the only option of outsourcing their payroll function to a local payroll service provider. This way, such companies are better able to operate in these countries while not deviating from their core business.

However, as many HR and legal teams have found out, choosing the right payroll Schweiz is easier said than done. One of the reasons for this is that these teams do not have the criteria to follow to get a company that is the perfect fit for your organization. In understanding these, you need to know what a payroll service entails, the different types of services they offer, and what factors to consider when choosing a vendor. Fortunately for you, we have covered all this in our comprehensive article. Keep reading to learn more.

What are payroll service providers?

Firstly, you need to understand what is meant by a payroll service provider. In a nutshell, this is a company that specializes in providing payroll services to other businesses that do not have the expertise and knowledge about running payroll in-house. When you have a multi-national corporation that has branches in different countries, the best solution is to outsource the function to a local expert vendor. This is not only cheaper, but it also lets your organization focus on its core competencies.

What services do international payroll providers offer?

You probably think that this is a rhetorical question that needs no answer. In truth, however, not many people fully understand the roles that these vendors play. Here is a list of the services that payroll vendors offer:

  • They calculate gross pay and also deductions for all your workers.
  • They withhold income tax in addition to deducting other statutory contributions like social security.
  • They process paychecks
  • They help you to manage paid time-off and sick leave
  • They compute and remit payroll tax and social security deductions on behalf of the employer.
  • They file and also pay all payroll-related taxes.
  • They keep proper custody of all payroll records
  • They provide comprehensive reports
  • They not only report but also register new workers with the relevant authorities
  • They provide you with a software solution that works smoothly with your current systems.

You may find that a payroll service provider describes itself as a full-service payroll vendor. This means that, other than doing the basic stuff like computing pay and admin, it will also handle depositing salaries and wages into the bank accounts of your employees.

What Should You Consider When Choosing a Payroll Provider?

Adaptability to business growth

It does not matter that your global expansion is still in its nascent stages with only a handful of remote teams keeping the operations of your business alive. Things will surely change and when they do, you don’t want to go to the market to start looking for another provider. When you finally grow bigger, you will want a flexible and adaptable payroll provider to be on hand. This enables it to meet the needs of your growing team and be able to provide payroll services efficiently and according to the law. Before you choose a payroll provider, therefore, you must ask them if they will be ready to meet your business needs if you grow and bring more employees on board.

Data security

Few things are more sensitive than payroll data, which means that, wherever it is being processed, it must be done so with maximum protection. And if you are using a global payroll, the issue of data security is even more complex since data gets gathered in multiple jurisdictions that all have different staff data protection requirements. This data is then transferred to one or more locations for storage and analysis. Therefore, before you choose a payroll provider, the one question you will be interested in is how they protect and keep data secure.

Integration with other tools

Companies that have branches in several countries tend to rely on software programs that allow them to simplify as possible the management of their remote teams. This means that the global payroll Schweiz solution that you choose must work seamlessly with your current tools and should include interfaces that allow it to integrate easily with other software programs. Thus, the one thing you will be keen on is to see whether the system can be easily integrated with other management and HR tools and platforms.

Employee experience

If you are operating a global payroll, chances are that you will prefer a standardized system that works similarly for all your markets. However, it isn’t simply enough to pick a global payroll vendor that offers a system your HR and management teams can use easily. Before you make a decision, it is advisable to also consider the needs of your employees. Does the system give them an account that allows them to view their payslips and account status, etc?

Keep Communication Open

After choosing an international payroll partner, you must not close communication channels with the provider. Establishing lucid relationship goals with a regular reporting schedule and follow-up enables you and your payroll Schweiz partner to build a firm foundation for future working engagements.

Another suggestion is to review your account annually. This way, you can examine the inefficiencies that arose, discuss growth opportunities, and explore new services that offer extra benefits.


The importance of choosing the right international payroll service company cannot be gainsaid. Nailing the perfect one can help you expand your business to international markets by ensuring that you are compliant with tax and payroll requirements in overseas markets. Some of the things you will want to take into account include data security, employee experience, how easy the system can integrate with your existing tools, and scalability to future growth.

Interesting Related Article: “How to Streamline Your Employee Payroll Systems