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Global Payroll & Tax

Hiring a new international employee isn’t always as simple as adding them to your current payroll. Not only will you need to adhere to the new country’s employment law and tax system, which may be very different to your usual country of business, you’ll also have to incorporate or develop a local partnership which can be costly, confusing, and time-consuming. 

That is, unless you use Shield GEO as your Employer of Record (EOR). 

What is Shield GEO’s payroll solution? 

Shield’s payroll and employment solution simplifies your global HR process. We’ll act as the Employer of Record, which means taking legal responsibility for your international employees. We handle all payroll reporting, tax deductions, social security, filings, and other contributions to ensure you remain compliant in your new country of operation. This frees you up to focus on things like onboarding your new employee and integrating them into your culture.

What are the benefits of running payroll through Shield GEO?

There are three main advantages of using the Shield GEO Solution:

  • Cheaper
  • Faster
  • No surprises

By using an Employer of Record service, HR no longer has to spend time and energy researching and understanding foreign legislation, ensuring compliance, and developing new local partnerships. Instead, Shield GEO becomes your international HR resource, with in-country knowledge, contacts, and extensive prior experience. We’ll offer ongoing consultation and support as your business expands and stay up to date with any changes or updates to local regulations for you. 

What are the challenges of running payroll without an EOR?

Without using an Employer of Record service, you are left to figure it out on your own. You’ll either need to incorporate in a new country, hire local administration staff, and source vendors to help you stay up to date with employment law and tax requirements. 

You’ll likely want to standardize your approach to compensation, employment terms (e.g. notice period, IP protection), and benefits (healthcare, allowances, PTO) across all your employees. As you add more international locations this gets more and more complicated. Inevitably, you’ll come across countries where it’s very hard and expensive to apply your policies. Jurisdictions always have strict requirements on how withholdings and taxes need to be deducted, and failure to comply with these rules could put your company at risk of fines, penalties, and worse.  

Grappling with all of these requirements and responsibilities yourself can feel overwhelming and frustrating. Information can be hard to come by, and difficult to understand when you find it. You might find yourself wishing you had someone else to double-check your processes to confirm you’ve done the right thing. And yet, even if you use the best (and most expensive) global firms to advise you, the responsibility and risk for tax and legal sit entirely with you to get it right.

The time and expense required to set this up can create significant delays in entering the new market and will place your human resources department under significant strain. It is hard, time-consuming work to manage a bunch of foreign vendors. 

Because of these risks, we strongly recommend sourcing legal guidance if you are looking into a DIY approach. 

How does payroll work with Shield GEO?

With Shield GEO you don’t have to do it alone. We assign a specialist to understand what you need and build a personalized setup for your company. You can feel comfortable, safe, and secure knowing that compliance is completely taken care of, with Shield functioning as your HR Business Partner in every country you’re hiring employees. 

We’ll explain everything clearly, and contextualize it to your individual situation so that it makes sense to you.  

The basic process looks like this:

  1. Shield GEO becomes the Employer of Record and employs your staff on your behalf.
  2. You confirm payroll inputs each month. 
  3. We send you a monthly invoice showing the Total Cost of Employment (Base salary + Employers Statutory Contributions + Business Tax) and a Management Fee. Everything is itemized for your finance team to review.
  4. Your staff is paid on time, every time. All taxes and social security are deducted at source, paid, and filed to the local authorities.
  5. We provide your employees with payslips and send you regular reports.

In countries where your standard policies are difficult to apply, we will work with you to find solutions. And we handle all the operational aspects of payroll for your staff, including calculating and filing taxes, withholding, social security payments, and other statutory requirements. In most locations, we can offer additional medical insurance and the ability to make pension contributions. 

Your account manager is available whenever you need help, and behind them is a whole team of support. So, if there’s ever a problem, we’ll be with you every step of the way. 

Summary

Using Shield GEO as your Employer of Record means you’ve got a partner who will make it easy to employ and pay your international employees. We handle compliance, administration and payroll in all the countries where you want to hire. We make international employment and payroll simple.



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