You have employees in several different countries; you’ve decided to enlist the help of a global payroll provider; and now you need to figure out the best way to get everyone paid.
Best practice is to choose a provider who will partner with you to make the process simple and seamless. Traditional banking methods often fail to deliver accurate and sustainable solutions, often resulting in:
- Incorrect and late payments to employees and third parties
- High costs and transaction fees imposed on the customer
- Lack of transparent pricing provided from the banks
- Complex or insufficient reconciliation processes
- Unidentified intermediary bank charges being applied
- Difficulty in tracking payments due to complex routing of the funds
- Regulatory compliance issues resulting in penalty charges
Employee and employer payment rules vary by country and there are often a multitude of funding currencies. The payment process should be defined and built into the managed payroll service deliverables for each payroll.
Key features to look for in a Payment Platform
- Simplified payments processing with country payment validation
- Highly accurate, compliant and secure payment delivery
- Segregated client account ensuring full transparency; reconciling is made easy, as you will have your own log-in to the payment platform
- Reporting facilities – allowing searches by payment/ country/ month
- Built-in foreign exchange conversion that can be substantially less expensive than those usually charged by banks with intelligent routing of funds across a global network
- Direct access to the largest global payment network, providing scalability opportunities in even the most challenging of countries
- FX Solution – fund multiple payrolls in just one transfer of any major currency and let us purchase the local currencies required at favorable rates
- Tracking – full track and trace capabilities, enabling status reporting for all payments
- Control of Intermediary fees – Ensuring delivery of the full payroll amount to the beneficiary.
Funding your Payrolls
Organizing the funding for international payrolls can be a complex task as there are many factors to consider:
- Does the business already hold local funding for each of the currencies in scope?
- Can the funding be centralized (e.g. total funding required internationally sent to vendor in one currency from one site)? Vendor to purchase currency on behalf of the customer.
- Is the preference to keep payments in house or allow vendor to manage the end to end process from calculation of the payrolls all the way to disbursement of payments?
It is important to partner with a vendor who can provide options in relation to the funding and payments process for employees, so that you can select what works best for your company. Funding options you should look for include:
1. Local Funding – Your payroll department transfer funds in local currency to each of the vendor’s in-country affiliates, to make the direct net payments to your employees alongside any third party and statutory payments.
2. Centralized Funding – Vendor receives a single funds transfer from your payroll department in a major currency £, $, € which will enable vendor to purchase the local currency and execute the direct net payments to your employees alongside any third party or statutory payments.
3. Payment Output File – This would be suitable for clients who hold local funds for each of their payrolls but would like the payment process to remain in house.
The iiPay Solution
Through our international payment platform, we offer an effective solution to the time-consuming processes, risks and high costs associated with making payroll payments internationally; combining access to one of the world’s largest global payment networks with cutting-edge payments technology.
Our flexible and scalable solution makes global payment runs easy; when you choose iiPay, you are selecting a truly global payment solution – with the ability to pay in 130 currencies to 180 countries. With built in features that ensure compliance with in-country payment regulations, iiPay delivers a highly accurate, compliant and secure payment delivery every time.
iiPay offers all three above-mentioned funding solutions, along with an assured and accurate process, enabling our clients to pay their employees and third parties globally, irrespective of the currency and location of the recipient back account. The benefits of using iiPay’s international Payroll Payments Solution include: Comprehensive Solution; Cost Effectiveness; Speed; Tracking; Notification and Reporting; Flexibility; Compliance; Ease of Use; and Control of Intermediary fees.