Guide
A Guide to International Payroll Costs
Global payroll
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Expanding your global team? One of the biggest financial considerations when entering a new market is payroll costs.
Without the right payroll systems, staying compliant can be challenging, especially for small businesses hiring full-time employees abroad. Exchange rates and local payroll requirements further complicate the process.
What’s Inside?
This guide breaks down international payroll expenses across key hiring destinations to help you save money and plan expansion effectively. We analyze the payroll management landscape in:
- Argentina
- Australia
- Brazil
- Canada
- Chile
- China
- Colombia
- France
- Germany
- Ireland
- Italy
- Japan
- Malaysia
- Mexico
- Morocco
- Netherlands
- Pakistan
- Philippines
- Spain
- Sri Lanka
- United Kingdom
- United States
- Uruguay
While this guide does not cover all payroll costs in every country, it does feature the countries with the most complex payroll requirements as well as the top countries hiring globally/being hired from as per Deel’s State of Global Hiring Report.
Why Read This Guide?
- Understand payroll taxes and employer payroll costs in different markets
- Learn how to run payroll and stay compliant
- Compare payroll software and payroll systems for international hiring
- Find ways to work with a global workforce and optimize costs
- Navigate the challenges of paying employees across borders
Who this guide benefits
- Expansion teams looking to identify best-fit market opportunities
- Finance teams seeking insight into international payroll costs
- Founders and CEOs eyeing a new market for expansion
FAQs
What is the international payroll process?
International payroll involves calculating wages, withholding payroll taxes, and ensuring compliance with local labor laws. Companies must decide whether to use in-house payroll management, hire local providers, invest in global payroll solutions, or use a hybrid model.
How to set up international payroll?
To run payroll internationally, businesses must register with local tax authorities, set up compliant payroll systems, and manage exchange rates. Many companies use multi-country payroll providers to streamline the process.
How much does it cost to have payroll done?
Payroll costs depend on the country, payroll software used, and compliance requirements. Expenses include payroll taxes, administrative fees, and potential penalties for non-compliance. See Deel's payroll pricing.
How can a US company pay a foreign employee?
A US company can pay employees abroad by opening a local entity, using an international payroll provider, or working with an Employer of Record (EOR) to handle compliance.
Is there a global payroll system?
Yes, global payroll systems help businesses process salaries across multiple countries while staying compliant with local payroll requirements. These solutions integrate with payroll management tools to simplify reporting. With Deel Global Payroll, you can manage payroll for all your entities in one place.
Deel is an all-in-one platform for global payroll and HR. It enables teams to manage local payroll, international payroll, IT, benefits, immigration, and more, all in one platform.
What is an employer payroll cost?
Employer payroll costs include salaries, payroll taxes, social security, and other legally mandated contributions required to pay employees in each country.
Can I do my own payroll for free?
Companies can manually run payroll, but compliance risks and payroll challenging regulations make it difficult. Investing in payroll software or outsourcing to a payroll management provider can help save money in the long run.
Disclaimer: Payroll costs and rates included in this guide are accurate at the time of publishing but are subject to change. Always confirm the latest rates and requirements before running payroll.