Simplifying How You Pay Your Global Workforce
Managing global payroll across international borders, and multiple languages, is challenging for expanding businesses. Through laws and regulations, each country has its own approach to payroll, mandatory deductions, and tax withholding.
Horizons manages payroll on behalf of companies in more than 150 countries and regions. Our all-in-one payroll and HR solutions allows you to streamline your international payroll, ensuring on-time accuracy and full compliance with local laws.
To centralize and coordinate your global payroll cycle — in any country — consider our international payroll solutions.
Discover our payroll solutions for:
Why Choose a Horizons Global Payroll Solution?
Horizons’ global payroll solutions ensure that your international team is paid accurately and on-time. We serve as your local team on the ground, handle all administrative requirements, and coordinate payroll through a single point of contact.
What Are Global Payroll Solutions?
Global payroll solutions (also called ‘international payroll solutions’) ensure accurate payment of employees and contractors in any country around the world. We set out the different global payroll solutions offered by Horizons below.
1. Global Professional Employer Organization (Global PEO)
A global PEO becomes the legal employer for a client company’s professional workforce, all over the world. The global PEO administers payroll, withholds necessary taxes and social contributions, and acts as the ‘Employer of Record‘ with tax authorities and other regulators.
Global payroll is just one of the services included in a Horizons global PEO solution. For example, a global PEO often, recruits talent and provides additional HR services, in addition to payroll processing.
2. Global payroll for local entities
For businesses that already have a local entity in the country where they wish to make payments, we can take over payroll processing for that location. This is often known as ‘payroll outsourcing‘.
As an outsourced payroll provider, Horizons can process all payments to employees and processes employee income and payroll taxes. As the client company remains the ‘Employer of Record’, they retain ultimate responsibility for their employees.
3. Contractor payment solution
Sometimes companies prefer to hire international contractors, rather than employees on payroll. For these situations, Horizons provides a contractor payment service.
Through our contractor payment solution, we ensure that all contractors are paid efficiently, and in full compliance with the law. We deal with currency issues, and ensure that invoicing is compliant with local tax laws.
We also advise whether engaging a contractor might count as employee misclassification under local tax and employment laws.
Benefits of Using Horizons’ Global Payroll Solutions
There are a range of benefits to using a global payroll solution to pay your international team. Benefits include:
1. One partner for global payroll
Where your teams are located across multiple countries, or you would like them to be, ordinarily your firm would have staff located across each location to manage payroll. No longer.
With global payroll solutions, you have one partner who manages and distributes payroll and benefits across every international location. You pay one monthly invoice, while we make all international employee payments.
2. Payroll and benefits administration in full legal compliance
Strict laws and regulations apply to the payroll of employees. Furthermore, these laws differ significantly in different countries. For example, there is no standard way of withholding payroll taxes and social contributions and every country seems to have a slightly different approach.
By engaging a Horizons payroll solution you ensure that payroll is distributed, and employee benefits managed, in full compliance with local laws.
A Horizons global payroll solution is the best way of ensuring you are not hit by back taxes, interest, and penalties from regulators for non-compliance.
3. Reduce overall payroll costs
Payroll and benefits administration are specialized functions. This means that, in most cases, it is cheaper to hire a specialist, such as Horizons, than to administer payroll yourself.
With Horizons, you save up to 85 percent on your global payroll administration costs through our global PEO and payroll outsourcing solutions.
4. Competitive employee benefits
A central part of global payroll, besides distributing payments to employees and contractors is managing employee benefits, such as health insurance and pension funds.
As payroll experts, Horizons has access to competitive employee benefits that are not generally available to foreign companies.
5. Improve company budgeting
It is usually a requirement of payroll laws that employees be paid in their local currency in accordance with designated pay periods (e.g., fortnightly versus monthly).
For international companies, currency fluctuations turn managing payments in multiple countries at different times into a headache. With our global payroll solutions, you make one payment each month, in one currency, and Horizons takes care of the rest.
Which global payroll solution best fits your needs?
Income & payroll tax withholding
Submissions to tax authorities
Employer of Record
HR & labor law compliance
Step-by-Step Guide to Horizons’ Global Payroll Solutions
When you decide to explore a global payroll solution with Horizons, the process usually proceeds as set out below.
Step One: Discuss Payroll Strategy
For companies that already have a local entity in a country, this could be payroll outsourcing alone. For companies that do not have an entity in place, a global PEO solution could be appropriate.
Where your company has an employee based overseas, but still wishes to be paid in their ‘home country’, we can investigate whether a ‘shadow payroll‘ solution is appropriate.
Step Two: Sign Engagement Contract
Your company and Horizons enter into an engagement contract setting out the terms of the proposed service.
Step Three: We Initiate the Payroll Solution
We set up essential payroll information for each employee (such as personal information and tax numbers), as well as payment methods.
Step Four: We Distribute Payroll
We distribute payroll on a regular basis to all employees, in accordance with an agreed schedule. All essential social contributions and taxes are accounted for and withheld where necessary.
Step Five: We Maintain Communication with Authorities
We submits reports, and makes declarations, to the tax and employment authorities as required, in every country in which you are located.
Step Six: We Wind Down Payroll for Departing Employees
We ensure that final pay, benefits, leave entitlements and taxes are appropriately settled for any employees finishing up, whether due to termination or resignation.
Experience Seamless Global Payroll Management
Horizons offers global payroll solutions to coordinate and simplify your international payroll operations. We ensure accurate, on-time payroll and benefits distribution, to more than 150 countries worldwide.
Frequently Asked Questions
Yes. In addition to international payroll solutions, Horizons can recruit and hire employees, with your input. That way, we become the 'Employer of Record' for your overseas workforce.
Horizons offers global Professional Employer Organization (PEO) solutions for enterprises expanding overseas. This means that Horizons can act as the Employer of Record for your staff based overseas. As part of that service, Horizons processes and administers the payroll for your international workforce.
While Horizons can administer your payroll as part of a global PEO solution, if you prefer, you can solely outsource the payroll function to Horizons.
When you choose us as your Global PEO, we are generally responsible for withholding all payroll taxes and employee income taxes, and making required declarations to the tax authorities.
As well as managing payroll itself, Horizons also takes care of all compulsory employer contributions and employee benefits. Depending on the country, this may include contributions to insurance, pension schemes, and workers' compensation.