What Is the Impact of Remote Work to Payroll?

There are many uncertainties for businesses today, and many are trying to adjust to all those changes daily. Remote work was a big change for many companies and the biggest question was how that will affect payroll. So, what is the situation now, when remote working became a long-term reality for many businesses?


Just recently we stumbled up on the case where one of the employees working at the UK company had moved to Spain, without mentioning it to the employer. It turned out after a while that the employee is pregnant and her employer continued to pay the social contributions in the UK. It turned out that in the end, she was not entitled to maternity leave benefits in Spain. So, how employers prevent this and solve the issues is the question that remains. And how the employee mobility impacts the payroll?

The question that we all have is whether labor centralization is in our past. And if so, how can companies adopt it in the best possible way? When COVID-19 just started, the shift in the labor market and changes in the workplace caught many companies off guard. However, those businesses who already outsourced a portion of their activities were more flexible and they managed to minimize their loss. Outsourcing your payroll and HR activities can help your business hire faster and change faster, which is crucial for success in today’s business world.

The broader talent pool comes with challenges 

Hiring talent anywhere in the world sounds tempting for many businesses, especially now when we are fighting labor shortages, quiet quitting, the great resignation, and other challenges related to the workforce. But how do you handle contracts and payroll if you have your team members all across the globe? You still have to be legally compliant and take care of all the other employee benefits, such as a pension, healthcare, and others. Providing a safe work environment is a legal obligation in many countries, so this is also something to keep in mind when planning your expansion. One of the solutions is to find an HR outsourcing partner who will help with payroll and more.

What about taxes?

Only companies who have tried to hire remotely know how difficult it might be to know all taxation rules since they might differ from one jurisdiction to the next. With more mobility in the workforce, companies need to pay the right taxes. Since most of the taxation issues are the employer’s responsibility, doing it in the wrong way can have major consequences.

Finding the best talent regardless of the location 

Finding the right talent is becoming more complex since the competition is fierce. Turning to remote hiring is a solution for many companies since they get a bigger talent pool to choose from. As a result, they need people with the right skills to manage the legal, HR, tax, social security, payroll, compensation and benefits, and risk and compliance challenges in many different countries. It seems that employers need to hire a team in every country where they want to hire someone, but in reality, it is much easier. All that is needed is finding the right HR outsourcing partner.

Knowing all of this shows us that you can safely outsource your payroll and don’t have a single worry on your mind. Companies that are agile and flexible are those that will manage to overcome all the challenges that the economy brings. Finding a reliable HR outsourcing partner who will handle your payroll will ensure that your employees are paid on time and correctly, and that they have a go-to person in case of a hiccup. That’s why EuroDev is here!  EuroDev is a reliable partner of over 500 North American companies. With EuroDev, you can hire abroad fast without worrying about setting up an entity. You will stay compliant in every European country of your choice, and you will have an excellent team experienced to offer the necessary HR support. Let’s chat about the next steps for your hiring in Europe

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About EuroDev

EuroDev, established in 1996 with offices in The Netherlands, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 500 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.

Source: HROToday

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