Remote payroll and compliance are probably some of the most tricky, yet important areas for companies hiring remotely. Deciding to employ a remote and global workforce is a decision that can be both exciting and challenging due to many factors, including the sync and smooth management of payroll and compliance across different countries. 

Information availability chaos, differences in tax regulations and ever-changing laws across countries, currency conversions and delayed payments can all be real issues, frustrating both you and your employees.


Working with small to mid-sized businesses that hire remote employees, we noticed that they  often struggle to find a suitable solution that simplifies compliant hiring and payments for their global workforce.

Some of the most common challenges they face are: 

  • Legal issues - keeping track of ever-changing tax and payroll laws and regulations across different countries is a real challenge as not only tax laws but also other labour laws apply to remote workers operating in various countries (and states in case of the US). There are differences in regulations that apply to managing retirement plans, benefits, healthcare and overtime that you need to be aware of as an employer. 

  • Type of contract - choosing between hiring someone as an independent contractor or an employee can be a challenge due to differences of the definition of an independent contractor in different countries (e.g. New IR35 regulation in the UK)
  • Transition to remote payroll -  hiring remotely as well as managing your team’s payroll and contracts differ from the standard procedures for in-house teams. That’s why even your in-house HR professionals can struggle with applying the existing system to the new, remote reality and it’s important to support them with relevant tools and knowledge to ensure a smooth transition.

  • Complex processes - when building remote teams, in addition to regulations regarding taxation and data protection, you suddenly need to manage numerous data streams in different styles, formats and languages for both employees and contractors while ensuring that everybody gets their payment on time. A good remote payroll tool can help you simplify this process.

  • Risk of accidental non-compliance - as laws are susceptible to change, compliance is crucial to get done right to avoid a potential risk of fines and penalties. The best way to avoid this risk is to use an automated payroll system backed by experts who stay on top of all the legal changes and will alert you if you need to make any changes. 


Until recently, companies had three options to deal with these issues: 

  • Bringing on independent contractors, which can be a grey area in terms of compliance and doesn’t solve the problem of handling international payments. International laws and regulations regarding independent contractors  are currently being discussed and changed in many countries, so what seems like a good solution now might not be sustainable in the long run

  • Setting up a foreign entity, which can be costly, time-consuming and maybe not even feasible if you’re employing contractors from more than one country

  • Hiring a full-time employee (on an employment contract) through a third party provider or employer of record service can liberate you from having to handle formalities and compliance issues, but usually implies paying a fee which in the end can affect the total cost of the employee you want to hire.

None of these solutions are ideal, especially for small businesses that need to hire fast with limited budgets and that are in need of easy, clear, and streamlined processes.

Payroll & Compliance software  

Over the last few years, we’ve observed a rapid growth of great remote payroll and compliance software, which can help companies make these operations efficient, secure, and up to date with the international laws. 

There’s a variety of tools to choose from depending on your business needs, but if you’re a startup or a small-to-medium business, your best bet would be an all-in-one tool that lets you run a foolproof payroll and compliance for remote teams.

Why should you consider using a remote payroll and compliance tool? 

  • You can save a lot of time and money by automating manual tasks 

  • You can keep all the relevant data in one place, which gives you clear overview of your payments and localized compliance in one system of record

  • These tools  can help you manage payroll and compliance even if you’re not an expert or don’t have a HR department in your company

  • International payments, taxes and benefits can be difficult to manage according to local and international laws - professional tool can help you manage them seamlessly


One of the examples of reliable remote payroll and compliance software is Deel which helps onboard and manage payroll for remote employees from more than 150 countries. 

What’s unique about Deel is that it takes the whole regulatory liability and GDPR compliance on itself with more than 200+ law experts on board.

How can Deel benefit your business? 

  • Fast-track global hiring

Select the country of your new contractor, fill in some details and get instant access to an auto generated contract template that is compliant with local laws

  • Avoid compliance mistakes

Collect and store country-specific documents and stay on top of the current tax regulations. Double-check them with the help of local legal experts. The system will automatically recognize which documents that the candidate needs to provide and gather this directly without you having to spend time on it.

  • Pay with one click

Fund payroll in seconds with mass-payment and let team members withdraw their earnings using any supported payment method.

  • Hire full-time employees

Bypass setting up a legal entity with Deel as an EOR with compliance, taxes, payroll, and benefits in one place. Once all details are added, you'll get access to a transparent price overview to clearly understand the cost picture and which actions that are needed from both you and the candidate in order to proceed.


Deel platform dashboard


Special Offer - Deel x Nixa

We believe that compliantly hiring, paying, and scaling teams without borders should never  be a blocker for companies

To enable this and ease those processes for our Clients, we decided to partner up with Deel - a one-in-all platform for creating compliant contracts, onboarding and payroll for your employees in 150+ countries. By offering unparalleled access to tools and resources, Deel enables anyone to create locally compliant contracts in seconds, hire full-time employees in minutes, and process payments with just one click! 

To make it even easier for you to get started and to test this out, we are happy to let you know that all of our clients will be getting 3 months free access to Deel for managing your contractors and even 20% off Employer of Record services. 

This means that you can get started straight away with payroll of independent contractors without having to pay anything up front! 

If you’re looking for more reasons to test out Deel, find more info here. 

And if you’re looking for help building and scaling your remote team, get in touch and see how we can help you with attracting talent for your roles.

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