Five things that your organization can do today to have a more efficient international payroll management

Payroll management is for most companies a mission critical structure. If employees aren’t paid they don’t work, and the entire operation grinds to a halt. To maintain efficiency and fluidity in this structure should therefore be a top priority for all employers.  In this article Internago shares five quick takeaways from our payrolling expertise to help you run a more efficient payroll and ensure that you use the right global payroll services. 

1. Establish a straightforward system

Payroll management is a system with (potentially) a wide variety of moving parts. In other words, it can easily get extremely complex. In most cases that Internago comes across, the level of complexity is generally unnecessary. Components such as exact time attended, detailed comments surrounding expenses and associated reimbursement, holiday pay, planned time off, commissions and bonuses are a few that often clog up the system. Review your company policy! What details absolutely need to be recorded for the sake of continued efficient operations and compliance? Are there aspects which can be simplified? Both your payroll administrators and your employees will likely be grateful. 

2. Automate your tax obligations as much as possible

Not only will this action save time for your staff and payroll partners responsible for payroll management, but it will also minimise the risk of penalties.  Fines for late tax payments are one of the most common easily avoidable expenditures among companies, especially among SMEs. In some cases, the costs can be significant, depending on the countries you operate in and the number of employees associated. In many countries, a percentage of the total tax amount is added on top of the original amount on a daily basis. 

3. Digitise

It may sound simple in this day and age, but while software is continuously evolving, companies even in their first few years of existence start building legacy, not least within payroll management. As such, this guide is just as applicable for small business payroll.  A surprisingly large share of payroll management and employment softwares grows archaic very fast. This may be because the developer hasn’t kept up with legal developments, or because it simply doesn’t cover the geographies that your organisation operates in.  Changing software or other structures that dictate the global processing of payroll that your organisation has established over the years may seem risky, or complicated, given that payroll is a “load bearing” part of the organisation.  If you are still running a payroll that is even partly analogue, or if it has been a few years since you updated your system, you will likely have a lot to gain by digitising your payroll management system.  We highly advise you to, from time to time, review what digital solutions are available on the market. Internago’s payroll portal is one of the most advanced and user-friendly payroll solutions on the market. 

4. Make sure it’s future-proof

Much in connection with the above points, this action will save you time and effort down the line. Not only does legislation evolve, in many countries even on an annual basis, but your organisation will, if your business – as we presume you intend! – continues to flourish, growing more complex. Today, your payroll may be clear and structured, with only a single or small amount of legal frameworks to consider. But if you’re even starting to consider expansion to new markets it makes sense to have an agile system that can cater for complexity which, at the moment you move beyond your home market’s borders, increases exponentially.  Consider tax withholding rules, benefit charts, social security obligations, collective bargaining agreements and union relations, etc, etc. Your payroll organisation has over time built up competence in these areas, but once you cross another country’s border and employ people in new markets, all this work starts from scratch. Ensure you have a system in place beforehand which can cater for the same. 

5. Outsource your payroll

The wider your organisation grows, involving employment of individuals in additional markets, the more relevant payroll outsourcing becomes. Often, your employees’ expensive time can be used for better, more constructive (and income generating) activities than ensuring legal compliance. A classic case that Internago often sees is how an organisation’s payroll team spends similar amounts of time on handling a single employee’s payroll in a new and unfamiliar market, as it does for its 100+ employees in its home market! 

Internago’s team of experts are based in-country, and already have the competence to handle your international employment and payroll matters for you faster, and at a lower de facto cost, than your internal payroll officers might achieve. It’s a classic case of avoiding to reinvent the wheel!

Do you want more information or need help with employment and payroll ?

Internago can assist with cost calculations and full payroll service on most European markets. Please click here to find more information, or if you prefer contact us directly at


Please note that this blog post only gives an overview and provides some introductory examples to payroll. In practice, there are more detailed aspects to consider, which is why this blog post should only be seen as a general guide. For a more in-depth discussion, do not hesitate to contact us at

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