Best Global Payroll Services 2022

By 
Alon Rajic
Alon Rajic is the managing director of Finofin, the company behind Money Transfer Comparison. He was previously a senior manager for XLMedia PLC (LON:XLM). His financial commentary could be found on INC, Forbes, Entrepreneur, The Motley Fool, Nasdaq.com, Yahoo! Finance and more.
Read more about Alon Rajic
Last Edited Jun 25, 2022

Global payroll solutions are definitely in style now. Employment is nothing like it used to be prior to the pandemic as global hiring bolstered many folds during this period, and more and more companies are now proudly referring to themselves as “multinational employers”. Whether it’s through a subsidiary or a franchise abroad, or without it, they need to figure out a way to make international payroll payments, while remaining compliant with local laws and regulations.

As such, they need to find a safe, cheap, prompt and easily-integratable international payroll service (or best global PEO, if you need the complete HR functionality) that has enough reach to cover all the locales in which employees are hired. Global payroll services in 2022 enable employers to hire internationally with less overheads and trouble, while saving money, and without any geographical limitations of any sort.

 

Who Need a Global Payroll Solution and Why

Companies are searching for the best global payroll options, or more advanced solutions, like PEO (Professional Employment Organization) or EOR (Employer of Record), for a variety of reasons, which include the following:

  • Automating global payrolls to reduce workload and hassle
  • Saving money on international payroll payments
  • Streamlining international hiring software/processes and payrolls
  • Hiring overseas without requiring a local entity abroad
  • Aligning payrolls to local tax requirements and other legal requirements
  • Getting access to premium global payroll software that will synchronize automatically with the company’s accounting software (and/or other relevant SaaS services).
  • … and more.

Myriad of Solutions to Pay Payrolls Globally, But Hard to Navigate

Propelled by great technology, heavy funding, and significant global presence in a multitude of locations, there are international payroll providers companies currently on the market that can turn an international payroll processing into an easy plug-and-play solution for the entire recruiting and employee management process (including local taxes, local laws and local benefits).  All while saving significantly on the payment costs and simplifying associated processes (as international foreign exchange payments can be both costly, and highly complicated to execute, with banks).

The current challenge that many companies are facing is how to find the best international payroll service provider to fit their precise needs, and there are vast differences between the available solutions currently on the market.

For example, a small business looking for a global payroll service in Spain and does not have a global entity will more commonly used an all-inclusive solution such as the one offered by Papaya Global, while a larger corporation which already has everything set up in terms of local presence, local contracts, local legal compliance, and local tax, might opt for a solution that is exclusive to making the international payroll payments with a company like Moneycorp. In so many words, while Papaya is an international payroll outsourcing companies, Moneycorp is bank-alternative on how to pay employees abroad.

This global payroll service comparison will demonstrate how the two above scenarios and solutions are completely distinct and how the two payroll providers fall into completely different categories (Papaya Global is an HR solution that enables global payroll payments, while Moneycorp is foreign exchange and payments companies that don’t partake in the recruiting and hiring). Hence we will categorize each service on our top 5 services comparison list into either “strictly for payments and business foreign exchange” or “global hr and payroll”. We will also cover the availability of such services, what are the minimum requirements to use, and pricing.

 

Top Global Payroll Providers

The best business payment specialists and international payroll processing companies, as per our editorial ranking.

#1
🌎 Papaya Global: Most Global, Friendliest and Easiest Global Payroll Solution
Headquarters:
450 Broadway 27th Floor New York
97.4% Editorial rating
N/A Client Reviews
Minimum transfer:
No minimum turnaround or company size. Welcomes clients of all sizes, globally.
Why Them?
  • The #1 Most Comprehsive Hiring Abroad Solution in The Market - Global Payrolls and EOR/PEO Solutions Across The Globe
  • Very Technology-Oriented With Integration to Almost Anything HR/Accounting Like SAP, Priority, Microsoft Dynamic, Google SSO Monday, Expensify, BambooHR, Okta, Workday and More. The Entire Hiring Process is Steamlined and Improved
  • Works With Large Name Customers like Microsoft, Toyota, Johnson & Johnson, Intel, and Wix
+Read more
#2
UK EU Australia USA UAE Moneycorp: Best for PAYMENT Solutions & Corporate FX
Headquarters:
Zig Zag Building, 70 Victoria St, Westminster, London SW1E 6SQ
92.4% Editorial rating
7,000 Client Reviews
Minimum transfer:
£250 or equivalent
Why Them?
  • Experts in International Payments, Since 1979 - Specialise in Corporate Foreign Exchange Services (Guidance, Hedging, Mass Payments). Very High Level of Credibility.
  • Does not offer a full HR suite i.e. You Can Use OFX for Payroll Payments and Not for Hiring. No EOR Solutions - Does offer API intergration to Netsuite, Quickbooks and Xero and can process mass payments via bulk payment file or integrate the system into an ERP (mode of execution is client-led)
  • Widest Selection of FX Hedging Tools to Fix Rates for Future International Payroll Payments
+Read more
#3
Australia UK EU USA New Zealand OFX: Best Online System for Business FX, Publicly Traded
Headquarters:
Level 19, 60 Margaret St, Sydney, NSW 2000, Australia
90.4% Editorial rating
1,500 Client Reviews
Minimum transfer:
£100 or equivalent
Why Them?
  • Traded Publicly on the Australian Stock Exchange, Large and Recognisable Payments Company with #1 Rated Online Platform for Payments. Spotless Reputation for 20 Years
  • Does not offer a full HR suite i.e. You Can Use OFX for Payroll Payments and Not for Hiring. No EOR Solutions or Sophisticated Integrations - Upload Payroll Excel Sheet
  • Widest Selection of FX Hedging Tools to Fix Rates for Future International Payroll Payments
+Read more
#4
🌎 Rippling: Potentially the Cheapest International Payroll Solution
Headquarters:
455 Second Street, Suite 1500, San Francisco, CA 94105
N/A Editorial rating
Client Reviews
Minimum transfer:
No minimum turnaround or company size. Welcomes clients of all sizes, globally.
Why Them?
  • Integrated Hiring Solution - Talent, Benefits, Learning Management, Attendance, Work Analytics, and - International Payrolls - Under One Roof
  • The Simplest Solution Starts at $8
  • Rippling is an Employee Management System With an Overseas Payroll Functionality - Unlike Papaya Global Which is 100% Focused on Hiring, Managing and Paying Employees Abroad
+Read more

 

Can You Hire Anywhere? Are There Minimal Requirements?

All of the above selection rated as the best global payroll solutions truly have an international approach to business. Companies like Moneycorp, OFX, and WorldFirst can onboard business customers from most western countries (not including South Africa, while Moneycorp can’t onboard Australia/NZ and WorldFirst can’t onboard USA) and have at least 40 different currencies available for payments. Please keep in mind that with these providers, you are not confined to make salary payments to employees abroad – you could pay and receive money from anyone as long as it’s compliant with Anti Money Laundering regulation.

Papaya Global tops the chart of globalization by being available worldwide (with the exception of blacklisted countries of course), and supporting global hiring in any country and any currency – a very impressive feat, similar only perhaps to Payoneer‘s reach.

In terms of minimum turnover or minimal number of employees there are no limitations with either provider! with that being said smaller businesses which are looking for f a more holistic solution in the form of a legal entity abroad through a PEO can be off-put by Papaya’s rates at $650 per employee per month (for EOR service only – global payroll payments are just $20 per payment).

Is “Fintech” International Payroll Management Effective?

Online testimonials of companies which have switched over to a “techy” type of international payroll management systems such as the ones we are comparing and reviewing on this page, demonstrate a very high degree of satisfaction. When these companies started using international payroll, PEO or EOR services (international payroll outsourcing companies), they stopped looking at international hiring as a nuisance or an overhead.

For some, the struggle was making the actual mass payroll payments in a variety of currencies to a variety of global bank accounts. Bank’s online systems are archaic and in the U.S and UK there are even banks who do not enable international payments through these systems. Others who don’t support solutions like mass payments or paying to multiple accounts in multiple countries in one-go. Then, there’s the struggle of feeding overseas employee data back into the bank’s global payment system – often not supported or defected and requires some sophisticated maneuvers to make it to work.

Top global payroll providers, or EOR providers, has expertise in areas like local compliance, data security, global benefits, global equity allocation, global immigration and of course global HR and global payroll. With that many options and diversity, the solution you’re getting is almost tailored – “tell us who you want to hire abroad, and we’ll show you the way to do it”.

A small sample of the functionalities offered by the most advanced solutions in the market includes: attendance tracking, employee benefits and leaves, a self-serving portal for employees, tax management, W-2 preparations, and of course the payment itself by a direct bank deposit in the local country and currency, all in one place. The technological boom of the 2010s and 2020s is probably the first time that VCs and highly funded startups have been paying attention to people in HR and accounting and opted to build advanced and all-inclusive multi-country  payroll software as well as other innovative HR solutions.

Read more about the Best Global PEO and EOR Solutions on this dedicated guide.

Hedging Foreign Exchange for Overseas Payrolls

One key element any small business or corporation must keep in mind is that if revenues are accumulated in one currency, but international payroll management are done in another currency (or several other currencies), that business is exposed to foreign exchange risks. Currencies do not move in tandem with each other, and the “earnings currency” of a certain company lose value in comparison to its “spending currency” (or currencies), it poses a serious threat to that company’s bottom line.

For example, if a certain business has staff in the U.S but receives Turkish Lira because most of its sales are in Turkey, that business would seriously lose from currency movements – 1 dollar is worth TWICE as much Liras as it was worth 12 months ago, and that means the cost of salaries in the U.S would be twice as much as they were in October of 2021 (and three times as much as it was in 2019).

Another example which less drastic, would be for a British business employing and paying international payrolls in India. In October of 2021, the INR to GBP rate was about 102, and it is currently (June 26) below 96. The rate went down almost 6% in this period and paying payrolls in India has become 6% more expensive for that business.

Fix Your International Payroll’s Exchange Rate for Years to Come?

There are certain types of contracts sold by currency brokerages like the aforementioned Moneycorp which enable SMEs and corporations to hedge against currency movements. The most common contract, which is also the most straightforward, is a Currency Forward which simply fixes the current rate for future transactions (up to a period of 3 years with Moneycorp, and up to 2 years with most other business foreign exchange services). There are other FX hedging solutions, though, such as a variety of options available with your broker. Please note that international payroll processing companies like Papaya Global or Deel don’t sell such contracts.

Paying Global Payrolls

Reading throughout this guide and selection of the top-rated global payroll services, you have probably realized by now that when people, whether small business owners or company executives, search for a global payroll, they have one of two very distinct intentions. It’s either about making the payment itself in foreign exchange to a bank account abroad, or about a full-suite solution that will enable to recruit, hire and employ abroad, without having to have a local entity. We cover both angles so you could choose that one that fits you more – but even if you have not fully made up your mind about your business’ needs, don’t worry! Signing up with either of the global payroll outsourcing providers listed in this guide is FREE.