Make payday smoother with payroll variance

At Deel, we’re always looking for ways to help customers and their teams have a better payroll experience. We know that while it’s mission critical to get payroll right, there are a lot of hurdles that can make it challenging to do it well consistently. One concern we’ve been hearing from clients is that employees are escalating issues regarding paycheck changes each cycle—so we got to work creating a solution to alleviate these escalations. The result is a new feature called payroll variance.

Payroll managers at Deel are now going the extra mile by identifying and providing context as to why an employee’s paycheck may vary. This added transparency is a big plus for team satisfaction and the overall employee experience.

Varying net pay is a fairly common monthly occurrence. It could be caused by expense reimbursements, bonuses or commissions, a change in employee benefits, or a change in the foreign exchange rate. More considerable variances can occur at the country level, due to specific government mandates or policies, such as 13th-Month Pay in the Philippines, or the new 2024 tax legislation in the Czech Republic that applied to non-monetary benefits. Deel’s compliance and legal teams stay on top of all of this, and work with in-country payroll experts to identify and explain any changes.

Deel has trained a team of local payroll managers, AI technology, and created a cloud-native payroll engine—which caters to 50+ countries (and growing)—to determine and add provided reasons for a paycheck change, no matter the root cause. The goal is to deliver line items of each percentage variance to customers, ensuring an accurate and precise payroll report, and eliminating potential confusion.

This capability is made possible thanks to our in-house, local payroll experts in 100+ countries. Competitors usually rely on aggregators, or “middlemen,” who are less hands-on with payroll processes and compliance, and therefore can’t provide the level of detail, accuracy, and speed that Deel does. Clarifying payroll variance is a significant, proactive step in our mission to support customers and alleviate payroll worries, so they can focus on more essential things, like growing their business. 

Payroll variance is available globally for all EOR clients and will soon be available to Global Payroll customers. You can learn more about how it works, and where to view these variance reports on Deel below: