If you have staff overseas, you may be issuing payroll payments in more than one currency. Alongside the additional administration of making payments in multiple currencies which can have a resource cost, currency fluctuations can mean that the final wage bill will vary month to month. International transfer fees add further to the cost and can make paying overseas staff a complex operation.
What is the best way to set up an international payroll?
There isn’t a one-size-fits-all solution for international payroll. The first step is to take a closer look at your requirements – from the number of currencies needed on the payroll for international employees to all costs, including the cost of currency fluctuations, currency transfer fees and the resource cost of managing payments in multiple currencies. This will give you a clear picture of your requirements and the potential cost benefits of changing your approach and from there you can set up an international payroll solution that suits your needs.
How do I set up an international payroll for my employees?
There are a number of ways to set up an international payroll and make currency payments to employees across the world. International payroll services allow businesses to outsource international payroll, or all payroll as required. This reduces the in-house resources required for management of the payroll, but it does mean a higher cost of delivery. An alternative to outsourcing international payroll or complex, in-house procedures via a UK bank is to use the moneycorp global payments solution for international payroll.
What are the benefits of global payments platforms for international payroll solutions?
Using our global payments solution, businesses can set up, track and manage all international payroll payments from a secure online account. The global payments solution allows for payments in multiple currencies, real time tracking and management controls. This allows an administrator to set up all wage payments and the funds will be released once they have received management approval in the system. The global payments system also retains recipient information and has the facility to set up automated regular payments to further cut down the amount of administration required.
How do currency fluctuations impact the cost of international payroll?
Currencies fluctuate all the time – this means that between pay cycles there may be a difference in the cost for set amounts of currency. In some cases, the difference may only be minor, but during times of political uncertainty or rapid change, there can be greater volatility. It’s not possible to control or predict fluctuations in the currency market.
However, there are specialist currency tools available to mitigate the risk of currency volatility. If you’re managing international payroll, it’s worth taking the time to speak with a foreign exchange specialist about the current performance of the market and any potential changes for an accurate assessment of the costs. A specialist can also provide guidance and support on tools to track, target or even fix exchange rates for currency transfers to hedge against currency risk when paying your overseas team.