Chances are, there is an increasing number of names on your remote payroll list. Whether it’s the 13% of full-time employees who work remotely, or a growing amount of freelance talent providing their skills to the business, remote work has made payroll a whole lot more complex.
Looking to streamline freelancer payments, and avoid countless invoices, payment methods and currencies? You should check out Fiverr Enterprise, a Freelance Management System (FMS) that sources, hires, onboards, manages and pays freelancers for you, so you can save time and energy.
Keep reading for more information on handling remote payroll challenges, and putting technological solutions to work to add efficiencies where they matter most.
What is Remote Payroll?
Remote payroll is any strategy, process or technology that you implement to help manage, monitor and pay a global workforce. It may include country-specific benefits, smart tax management, and solutions for communicating globally and effectively.
Key Challenges in Remote Payroll Management
One of the first things to consider when handling remote payroll is the different time zones in which employees and freelancers are working. This can have a direct impact on communication, and make it hard to manage time tracking for shift work for example. For payroll, which is extremely time-sensitive, processes need to be synced across different time zones, so that workers have their payments in their bank when expected, not according to the time zone of the head office.
Compliance with local and international tax laws is also a critical consideration. Benefits can vary dramatically from one country to another, and even tax withholdings can be different from one state to another. Make sure to brush up on local laws where your employees are doing business, such as minimum wage, sick pay and parental leave.
When you’re paying workers remotely, they will have their own currencies and expectations for payment methods. A freelancer in the UK may want to be paid in GBP and via bank transfer, while one in Singapore may prefer SGD via PayPal. Employees will usually expect a bank transfer to their local account. All of these disparate payment methods and currency conversions will need to arrive in a timely fashion to meet your regular payroll schedule.
Remote payroll also opens up security and privacy concerns, as information is often sent through multiple third party payment processors, and remote work regularly includes the transmission and storage of sensitive information. Steps should be taken during onboarding to limit what is shared with remote workers who are regularly accessing company systems and networks from their personal or home devices.
Technological Solutions for Remote Payroll
Technology has advanced to support teams handling remote payroll and to add efficiencies to an increasingly complex process. For example, there are dedicated payroll software solutions that are meant for remote teams which can be helpful. However, many companies find it hard to juggle multiple different technologies, and make a single payroll software play nicely with other critical tools that handle communication, management, onboarding, and more.
Whichever solution you choose, it can be helpful if the new technology offers integration with time tracking and Human Resource Management Systems, or you’ll struggle to get a clear view of all of your workforce alongside their accurate payment details for each month’s payroll.
According to Workato, the fastest rising automation area is payroll processing, growing by 3,700% year on year. Automating payroll processes is a trend for a reason. It can make your HR processes more efficient, add accuracy to your organizational payroll, and save both time and money at the end of each month.
Best Practices for Managing Remote Payroll with Freelancers
When it comes to using freelancers for your workforce, many of the issues of remote payroll can be sidestepped. For example, complying with international tax laws won’t apply, as freelancers are responsible for their own taxes.
Fiverr Enterprise is a SaaS solution that gives you full visibility and control over your entire freelance workforce by allowing you to source, hire, onboard, manage and pay, all while ensuring compliance, so your teams can work faster and maximize business growth.
Here are some of our best practices for remote payroll with freelancers:
- Use Reliable Payroll Software: The technology you use will make a real difference to how easily you can pay a freelance workforce. With Fiverr Enterprise, your business can pay one single invoice each month, and Fiverr Enterprise will handle all the disparate payments, currency conversions, and payment methods. You can pay freelancers hourly, by milestone, or by project – and know that it’s all handled seamlessly on your behalf.
- Maintain Clear Payroll Policies: It’s important to be clear with freelancers about when they will be paid. Include your payroll policies on a thorough initial contract with freelancers so that they understand when and how they will be paid. Then, once you’ve made that commitment – put systems and processes in place so that they are always paid accurately and on time. That’s what makes you your freelancers’ preferred client to work with.
- Offer Multiple Payment Options: Not all freelancers want to be paid the same way, and yet for many businesses it’s far too complicated to offer different methods of payment. Fiverr Enterprise makes it simple, supporting seven different payment methods in 190 countries and across 80 currencies. Behind the scenes, every invoice is broken down by spend, PO and cost center, so nothing gets lost.
- Transparent Communication: Put a stop to endless payment negotiations, chasing invoices or sifting through email threads and spreadsheets. Your managers enter freelancer tasks and projects into a single platform, and freelancers simply request payment when the job is complete or a milestone is met. One-click approvals means everything is simple, streamlined and in one place, and both you and your freelancer can follow the payment through to completion.
Interested in seeing how it works for yourself? Schedule 30 minutes to speak with one of Fiverr Enterprises’ workforce experts.