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Providing you with the latest stories and solutions for making remote work, work.
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Welcome to the Playroll blog
Providing you with the latest stories and solutions for making remote work, work.
Read Time
July 26, 2024
Ready to hire remote workers and access global talent? Learn how to hire international employees, with tips on staying compliant and managing remote teams.
You gain multiple benefits when you hire remote workers. It goes hand-in-hand with hiring international employees and all the advantages of a global workforce.
Despite a trend of many companies enforcing a return to office, remote work has become an ingrained part of the working world post-COVID-19. According to Forbes, 12.7% of full-time employees in the U.S. work from home, while 28% follow a hybrid model. What’s more, a whopping 98% of workers want to work remotely at least some of the time – it will remain an integral part of the future of work.
When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:
Hiring from various countries enhances team diversity in culture, ethnicity, and gender, which improves talent acquisition, customer experience, and employee satisfaction. In turn, this drives business profitability, according to a McKinsey report.
Before the rise of remote work, companies were largely restricted to talent based near their offices, or had to relocate candidates that were willing to move - often at great expense. This naturally restricts the number of candidates you have access to.
Remote hiring allows access to top talent globally, vastly expanding your candidate pool. This can be immensely helpful when sourcing hard-to-find skills or if your country is too small to find a good number of candidates for your open roles.
By looking at countries with a lower cost of living, you can access quality, affordable talent across the globe. This can be especially useful for highly competitive, expensive roles as is common in certain industries, for example software development.
Employees have a strong preference for remote work, with 66% preferring fully remote work and 32% preferring hybrid. The majority of employees also report improved work-life balance when working remotely. Offering these opportunities to your team not only increases employee satisfaction as well as your employer reputation, but can also help retain employees.
Using a global workforce platform like Playroll allows your employees to work remotely, from any location, with limited overhead costs and complete compliance.
TecEx provides importer of record and compliance services for companies dealing with IT equipment. They wanted access to a global talent pool — but hiring remotely in new regions was not an option given legislative roadblocks, high costs and time-consuming efforts required to incorporate new entities.
Playroll helped them to scale their company without diminishing the employee experience for their remote teammates.
“The Playroll platform is intuitive and well designed, allowing our HR and Finance teams the ability to seamlessly hire new employees in international jurisdictions where we are not established. Playroll’s customer success team is highly responsive and knowledgeable. This level of service and support has been critical to realizing our global expansion goals.”
Learn more about TecEx’s global growth, made possible by Playroll
Hiring remote workers is more complex than local hiring due to additional legal and compliance requirements. If you want to reap the benefits of a global talent pool, there are several challenges you should be aware of before you get started:
There are always direct and indirect employment costs to consider with any new hire – but international hiring can come coupled with costs you might not be aware of. To legally hire new employees in any new market, you need a legal entity in the region which can come with substantial costs.
Many businesses opt to use Employer Of Record services for this reason, especially if they don’t have a large number of employees in a country. An EOR acts as a legal employer in a region on your behalf, so that you don’t have to take on the effort and cost of establishing entities yourself every time you want to explore a new market.
When you hire in a new market, you need to comply with the employment laws of the country the employee is based in. This means setting up compliant contracts that adhere to local labor laws.
You also need to classify your workers correctly to avoid hefty fines – for example, hiring a contractor but treating them like a full-time employee can open you up to misclassification risk.
Permanent establishment (PE) refers to businesses with a continuous presence in a country, requiring them to pay local taxes. There are a variety of factors that can lead to PE classification which differs by country, such as activity by employees that generate revenue, or having an address or bank account in a country.
Not paying these taxes can make you liable to fines and penalties in that country, and cause reputation damage to your business.
Paying any new employee means having them on your payroll system, paying all required employer taxes and mandatory local contributions – and making sure they’re paid on time. You also need to ensure fair compensation while accounting for currency fluctuations with different currencies.
There’s no one-size-fits-all when it comes to benefits. Each country has its own required mandatory benefits or contributions.
To attract great talent, you also want to provide attractive supplementary benefits – however, this also differs widely between regions.
For example, employees in Norway might not find supplementary health insurance plans very attractive, since they enjoy free healthcare. In another country like South Africa, a great health plan can make all the difference to your employees.
With many international employees, you will be sharing your data across borders. You’ll need to have good technological infrastructure in place to keep your data safe, as well as invest in training for your team to make sure they handle all sensitive data securely.
If you hire employees through an Employer Of Record, double-check that they offer services to ensure your IP belongs to the company.
So, those are significant challenges – how do you overcome them to start enjoying the benefits of an international workforce and explore global expansion as an option? There are several solutions that you can consider depending on the needs of your business:
One way to overcome the obstacles of hiring full time employees is to make use of contractors or freelance workers, instead. Hiring contractors can come with benefits such as:
However, beware of using contractors in the long-term, and for the same amount of work you would give to full time employees. Hiring contractors but treating them like full-time employees comes with misclassification risk, which comes with fines, penalties and reputational harm to your business.
If you make use of contractors, make sure your contract with the contractor is correctly set up to comply with local labor laws, and that your IP and invention rights are protected. Using a contractor management solution through a service like Playroll can help in the set up of compliant contracts, protect your business against misclassification risk, or convert contractors to full time employees.
Use this table as a guide to decide whether you require an employee or contractor for your needs:
Having an established legal entity in a new market can help you overcome many of the challenges mentioned. You can run domestic payroll for local employees, and it will help you avoid the risks of handling a permanent establishment improperly. Since it is considered a separate legal entity to the parent company, it can safeguard you against compliance risk.
However, establishing a legal entity can take a long time and comes with substantial costs – an estimated $20k+ in set up costs and $50K+ in operating costs per location.
To comply with local laws and taxes, you’d also need to hire your own HR, legal and finance experts in each new region.
If you have definite plans to hire many employees in a new market, this approach could make sense. However, it can be a financial bottleneck if you want to explore new markets, quickly expand, or only plan to hire a handful of employees in a new region. Fortunately, there are affordable alternatives that still allow you to be legally compliant when operating in a new region.
Another way to overcome the challenges associated with international hiring is to use an Employer Of Record, an increasingly popular solution for businesses that are expanding globally.
An employer of record is a third-party service that allows companies to employ international talent, without the barriers that are normally associated with global hiring.
These services allow you to expand into new markets at a much faster pace than establishing your own entities. Traditionally, only large companies with substantial resources could afford to employ the local HR, financial and tax experts needed to set up and operate local entities.
An Employer of Record like Playroll removes these barriers and allows companies of all sizes to access global talent. An EOR provider with comprehensive services can:
The usual pricing plan involves paying a monthly or annual fee per employee, instead of the steep set up and operating costs of establishing a legal entity.
Some of the most common reasons it might be time to use an Employer Of Record include:
There are many Employer Of Record solutions on the market. When choosing between services, ask questions such as:
Are they flexible with EOR to Owned Entity transfers?
Many EOR providers are inflexible when it comes to transferring employees between their own entities and client-owned entities, requiring a ‘resign and rehire’ approach – vastly complicating your relationships with employees. Playroll supports the flexible transfer of employment arrangements to client entities.
What is included in the base pricing?
Many EOR providers charge extra for everything beyond their core service offerings, such as dedicated customer support, or to provide localized benefits packages. Often, there are also hidden fees at stake that you’ll discover only when it’s time to pay the bill. Playroll has built-in compliance, dedicated support and benefits management included as part of its fixed pricing.
What kind of support can I expect?
Attracting and retaining talent for your team is an extra challenge when you’re operating in new markets. Your chosen global HR partner should act as an extension of your team. If you have to wait days to get an answer, your promising hire might have moved on already.
Playroll’s legal, finance, HR and support experts are available to advise on everything from payroll and local benefits, to setting up compliant contracts. Employers and employees alike have dedicated support managers available at no extra cost, to give you personalized service.
Once you’ve settled on your method of how you’ll hire remote workers, there are important preparations and research you should do as a business before getting stuck into the hiring process.
Besides the business of paying your remote workers compliantly, you should decide on your approach when it comes to global compensation – for example, do you pay location-independent salaries, or pay based on location and local cost of living?
You might consider pegging salaries to the currency your business uses as a standard (for example, dollars). In this example, you would use the dollar amount as the base for an employee's salary, then pay employees in their local currency based on the current exchange rate.
Every approach comes with its own pros and cons. Read our full guide on the subject, and make sure your business is aligned on this decision before you start hiring internationally.
The country you decide to hire in will affect what a competitive salary band for a role looks like. Factors such as the cost of living, required employer contributions and customary local benefits can have a significant impact on your hiring budget.
Conducting research on this will be important, regardless of your chosen global compensation strategy.
Tools to help you determine employee cost:
To source remote workers in new markets, make use of the following strategies:
Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.
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Finally, it’s time to dive into the actual hiring process. While much of this will follow your same process for hiring local employees, there are some special considerations.
Besides doing research on cost of living and competitive salaries per region, it’s important to know what the local employment laws and regulations are that you’ll need to follow – as well as cultural norms and practices that might affect how you communicate with candidates.
Some countries also have provisions in place that can make it easier to do international business, financial incentives for remote workers, or digital nomad visas that support remote work. For example, remote workers in France receive a monthly working indemnity of €100, and the government extends various incentives to those planning to establish businesses in the country – while many countries such as Spain, Portugal and Japan have introduced digital nomad visas.
Playroll’s country guides, covering 180+ regions, can be a useful starting point to familiarize yourself with hiring in a new market.
Be clear in your job description about the nature of the role, such as:
This can help prevent any confusion about the role and your business. If you’re using an Employer Of Record, it can also be useful to explain the nature of this arrangement to candidates, so they don’t get any surprises on who will ultimately help them manage their leave, benefits and payslips.
Since the COVID-19 pandemic, conducting interviews via video calls have become a standard part of the hiring process. That said, you should double check the basics when interviewing international candidates:
Make sure your employment contract is compliant according to the requirements of the country. It should adhere to local labor laws that govern aspects such as:
If using an Employer Of Record, they will handle setting up compliant contracts and offer expertise on every aspect of the offer you’re making to candidates. Alternatively, make sure you consult local legal, tax and HR specialists when setting up your contracts.
Managing a remote, international employee can differ from working with a team member that’s locally based. Here’s our top tips on what to watch out for:
On a practical level, ensure you have great employment management software up and running that can make it easier for employers to handle the administrative tasks of a distributed workforce and for employees to access key documents or request leave. For example, Employer Of Record services offer portals for employees and employers alike and can integrate with other popular HR software.
Software tools that can make remote team management easier include, for example:
Clear communication is crucial in a fully remote environment, where frequent in-person check-ins are not possible.
Make sure your whole team knows what is expected of them and when, and be deliberate in setting up regular check-ins to flag any problems and address questions in a timely manner.
Create structure and thorough documentation
Without structure in place, miscommunication can easily occur in a remote team, ultimately wasting time and causing frustration among team members.
Your project management should be extra organized with a remote team, with a common understanding of what tools you use to check in on your work and track progress.
Similarly, house your documentation in one place so it’s easy for new joiners to orientate themselves in your business and make an impact sooner.
It can be easy to feel disconnected from team members when working fully remote, and there is an extra risk when you have team members of different nationalities working together who might also be dealing with cultural and language barriers to overcome. To counter this:
While many employees enjoy greater work-life balance with remote work, it can also blur the boundaries between work and personal life – especially if you don’t have strict working hours in place. Set and enforce work hours to prevent burnout, improving long-term retention of valuable team members.
Related to respecting strict working hours, be flexible when it comes to team mates in different time zones – a policy of flexible working hours can make a big difference here. Schedule your team check-ins during times that respect the working days of your entire team.
While frequent check-ins are good in a remote setting, avoid crossing the line into micromanagement. Make it clear that you trust your team members to manage their tasks.
A structured onboarding program is especially important in a remote setting. Work with your HR team to develop a comprehensive program that gives new hires all necessary insight into the business and confidence with the tools they need on the job.
A popular practice is to pair new hires with mentors to provide guidance and support during their initial period.
As a business, your data is only safe if every employee helps safeguard it. When working with international employees:
When working with a global team, inclusive practices are especially important to make everyone on your team feel respected – it can also help your team if they’re going to work with clients based in different countries.
Offer training on cultural sensitivity and awareness, and survey your team regularly on its effectiveness and any improvements you could make.
Your country's borders should not limit where you can source and hire talent – extraordinary people are everywhere.
As skills shortages continue, and competition for world-class talent increases, hiring remote workers will become the new frontier for more companies across the globe.
Hiring a remote team compliantly can quickly get complex and come with significant challenges – but it doesn’t have to be. Playroll is on a mission to make borderless work a reality for thousands of businesses, of all sizes. By using a EOR provider such as Playroll, you can remove many of the risks and challenges of hiring remote workers:
Read Time
September 5, 2024
In recent years, the gig economy has seen a sharp increase as employers enjoy the flexibility of hiring skilled workers on a project-by-project basis. However, between 10-30% of US employers are misclassifying their workers, according to the National Employment Law Project.
There are a few reasons the authorities take this especially seriously:
While this guide focuses on U.S. regulations, businesses operating internationally should be aware that employee misclassification carries similar risks across many countries, with varying legal frameworks.
There are several distinct differences between full-time employees and independent contractors. Here’s a summary of the key differences:
If an employer misclassified workers as independent contractors, they may be required to pay back taxes, penalties, and interest on unpaid taxes. Employers may also be subject to legal action by the Internal Revenue Service (IRS) or other US tax authorities. Misclassified employees may not get tax benefits like the earned income tax credit if they are labeled as independent contractors.
Here are all the potential consequences of employee misclassification:
Misclassifying employees as independent contractors can trigger IRS audits. If the misclassification is deemed unintentional, civil penalties include:
If the IRS identifies fraudulent intent, additional penalties may include:
Employees can sue for back wages, including unpaid overtime and benefits, if misclassified. This may involve costly retroactive compensation for benefits like health insurance and retirement plans that the employee was entitled to
Besides pure financial cost, the long-term effects of being found guilty of employee misclassification can be devastating. Bad press, drawn out legal battles and the impression that you are treating workers unfairly will impact your ability to attract new talent and retain your existing staff.
How have cases of misclassification played out in practice? These prominent legal cases highlight how hefty the consequences of misclassification can get:
So, how can you be certain that you’re classifying your workers correctly? It can get surprisingly complicated to distinguish correctly between employees and independent contractors.
There are a number of tests in the US that can guide employers to distinguish correctly between the two. Two of the most relevant tests that businesses can use include:
The IRS distinguishes between workers under common-law rules according to the categories of behavioral control, financial control and the relationship between parties. Some questions the IRS asks as part of this test includes:
Get more details on the questions the IRS asks for each of these categories here.
Companies and individuals can also file IRS Form SS-8, requesting that the IRS conduct an official audit to determine a worker’s status.
In January 2024, the Department of Labor (DOL) published a final rule revising how employees and independent contractors are classified under the Fair Labor Standards Act (FLSA). The final rule looks at these six factors when distinguishing between contractors and employees:
Get more details on the economic reality test here.
This test looks at how the courts and the IRS have classified similar workers in your company or your industry in the past, rather than examining the nature of the working relationship. There are several conditions in this test, that could mean you have a reasonable basis for classifying a worker as a contractor.
These include, for example:
Get more details on the reasonable basis test here.
Employee misclassification is not unique to the United States and is an issue in many countries around the world. Employers should be aware of the labor laws in the countries where they operate and ensure that they are correctly classifying their workers.
Many countries have laws and regulations that are similar to those in the United States, such as tax obligations for employers. In addition, some countries have specific laws and regulations related to worker classification that employers must follow.
Employee misclassification is a complex issue with significant legal and financial repercussions for US companies. One way to avoid the penalties of misclassification, is to partner with a team of experts that know the rulebook when it comes to compliance.
An Employer Of Record like Playroll removes the risk of hiring full-time employees and contractors alike, in the United States and beyond. Dedicated legal and HR experts will help you correctly classify your workers, and convert contractors to employees if needed.
Playroll helps companies expand their teams worldwide and keep talented employees, with a robust infrastructure of established entities in over 180 countries, ensuring ongoing compliance.
An Employer Of Record (EOR) is a third-party service that assumes all employer responsibilities on behalf of another business, including payroll and benefits management for employees. EOR services are widely used by companies that are hiring employees internationally, without the hassle, time and cost of establishing a legal entity first.
The EOR acts as the legal employer paper, while you manage the employee's daily activities.
Yes, we admit our bias, but can point to a proven track record of success when it comes to compliantly employing, managing and paying remote teams for businesses of any shape and size.
Playroll simplified our expansion into new markets by providing a comprehensive understanding of local regulations. Through this partnership, we could immediately tick the box on compliance, at no risk to BET Software.
Gizelle Govender, Senior People Partner, BET Software
As a global Employer Of Record, Playroll stands out for its cost effective pricing, without compromising on the quality of its EOR services or support. It offers truly human customer support for both employers and employees to simplify international employment. This is in contrast to many competitors that rely on ticketing systems, do not offer dedicated support, or upcharge for support. We are uncommonly flexible when it comes to the needs of our customers, going the extra mile to customize contracts and facilitating transfers between EOR and client entities as needed.
Playroll’s user-friendly platform allows you to employ, pay and manage employees and contractors alike in 180+ countries, and provides a team of experts that ensures compliance with shifting employment regulations. Other services include comprehensive localized benefits packages, immigration support, and streamlining global payroll operations.
Pricing: From $399 per month, per employee. No annual commitment required for affordable prices.
Papaya Global is especially known for its comprehensive support in payroll processing, and is innovative when it comes to integrating AI within HR tech. They have a broad range of customization options available to customers.
On the downside, Papaya Global relies fully on third party partners to provide their services, instead of having its own infrastructure of owned entities. This can mean extra fees being passed on to customers, on top of already hefty monthly EOR fees. It also means the EOR provider always has to liaise with third-party partners when providing customer support, which can significantly delay their response times.
Pricing: From $599/month, per employee.
G-P is a popular EOR choice that offers a broad range of products. They split their EOR services between a core and premium offering. This can be useful for businesses that are looking for a broad range of options to pick and choose from. They also have many options to tweak and customize services, and advanced data analytics.
Globalization Partners does have its cons. Their pricing is complex and obscure, with reports of high monthly fees. Many of their EOR features are only available with their premium product, and they’ve received some negative feedback for slow customer service. Overall, this could make them a poor fit for smaller companies that have more limited resources and require more hands-on support to make their first international hires.
Pricing: Not publicly disclosed.
OysterHR is known for their fun branding and user-friendly platform, with quick onboarding times reported. They have a wide country coverage, and solid compliance credentials behind their name.
On the other hand, they are priced at the upper end of the market for their EOR services, which can quickly prove to be a financial bottleneck for companies hoping to hire more than just a handful of international employees. In addition, there have been some reports of payroll mistakes and delays on public review sites.
Pricing: From $599/month, per employee if paying annually. Monthly plans are priced from $699 p/month.
Remote is a well-known EOR provider, with a focus on providing services through their own network of owned entities, which can be useful for businesses that want to avoid dealing with any additional third parties in the equation.
On the downside, their EOR fees are very high compared to some other names in the business, and they have received some negative reviews on slow customer service and multiple points of contact. They also don’t offer a very wide network of country coverage for EOR services, with less than 100 countries covered, which can limit your ability to scale as a business.
Pricing: From $599/month, per employee.
Deel is another well-established player in the EOR space, offering options to manage full-time employees and contractors in 150+ regions. They can be a good fit for businesses looking for an EOR partner with many owned entities, and a comprehensive range of integrations.
That said, Deel’s fees are expensive and require annual commitments for cheaper pricing, and they’ve received many negative reviews of hidden fees and unexpected costs. This can make it hard to properly budget for their services, and can prove too expensive for smaller businesses looking to scale globally.
Pricing: From $499/month, per employee if paying annually. Monthly plans are pricier, at $599 p/month.
Rippling is a popular workforce management solution, and is especially known for their broad range of products that include payroll, finance and IT management. This can make them a good choice for companies looking for a single solution to workforce management.
If you’re looking for a specialist in global employment and EOR services though, there are some cons to consider. Their pricing is not publicly disclosed, though high fees are reported – and they’ve received negative reviews of a bloated product with a steep learning curve, as well as payroll errors.
Pricing: Not publicly disclosed.
Velocity Global stands out for its wide country coverage as an EOR provider, at 185+ regions, which can make them a good choice for employers interested in stable support for any future growth plans.
They are another example of an EOR provider that doesn’t disclose their pricing publicly, with reports of steep monthly fees. Another downside is the many negative reviews they’ve received for slow customer service and multiple points of contact, which can make them a frustrating provider to deal with if you value quick response times to enquiries.
Pricing: Not publicly disclosed.
Multiplier offers good pricing for the EOR services, and has a solid library of extra global hiring resources available for employers. They also have all compliance credentials needed to mitigate risk for employers looking to hire internationally.
On the other hand, they take a complex approach to invoicing, and have received some reviews of slow and faulty payroll services. They’ve also received negative feedback on slow customer service. Overall, this can mean risk to your business if you value simple, timely payroll for employees.
Pricing: From $400/month, per employee.
WorkMotion is an EOR service that specializes in supporting European companies, and can also assist with in-country registrations – which can make them a good choice for EU companies looking to expand their business.
As for its cons, WorkMotion charges very high EOR fees that only become more affordable when hiring many employees. They also don’t offer any support in hiring independent contractors, which can be detrimental to businesses that are looking for a single service to hire any type of worker across the globe. Lastly, they don’t have SOC2 certification, which many businesses require to safeguard their data when working with EOR providers.
Pricing: €649 p/month ($724) per employee for up to 4 employees. Price decreases if onboarding more people.
Playroll ticks the boxes on robust compliance, broad country coverage and many owned entities. This is similar to many of the competitors mentioned on this list, and are some of the standard offerings you should look out for when choosing an EOR provider that offers comprehensive services.
Overall, though there are many strong EOR contenders on the market, Playroll stands out for its competitive pricing, as well as its on-the-ground support for businesses of all sizes – with dedicated support and flexibility for both employers and employees.
We believe quality support is the single most important trait for an EOR provider, since EORs support businesses that are expanding into jurisdictions they’re often unfamiliar with. This means quick responses to tricky compliance questions, flexibility to customer needs and a truly human touch is invaluable.
Book a chat with our team to find out how we can help you scale your global team.
Compare the top EOR providers side-by-side, with a full breakdown on cost, support, coverage and more.
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An Employer Of Record (EOR) is a third-party service that handles employment responsibilities for your company, like payroll, taxes, benefits, and compliance with local labor laws. The EOR legally employs your global team on paper, while you manage the employee's daily activities.
EOR providers typically operate under these business models: using their own wholly-owned local entities, partnerships with local providers, or a combination of these two approaches. A wholly-owned EOR model means the provider sets up its own entities in each country and retains full control over hiring and payroll.
In contrast, some EORs partner with local vendors and outsource these tasks. While this can be cheaper for the EOR, it may lead to less reliable service for you. Wholly-owned entities has the following advantages:
Selecting an EOR partner with a robust network of wholly owned entities can give you advantages in all these areas.
It's important to find an EOR with transparent pricing. Some providers may have hidden fees, like onboarding and offboarding charges, which can increase costs unexpectedly. Look for an EOR that clearly communicates all potential expenses upfront, is straightforward in their invoicing, cost effective and offers a clear breakdown of what’s included in their pricing.
Lastly, they should offer flexibility in their pricing models that suits the needs of your business: this includes offering monthly charges for full-time employees over requiring annual commitments for lower rates.
The level of support an EOR provides can make or break your global employment strategy. Quick response times and hands-on support are essential, especially when dealing with complex issues like payroll queries or legal compliance in jurisdictions you might be unfamiliar with.
Before bringing an EOR provider on board, check their public reviews on platforms like G2 and Trustpilot. Additionally, ensure that the EOR offers dedicated support for your employees to ensure employee satisfaction and retention. Be sure to ask if dedicated support comes free of charge, as some EOR providers charge extra for this service.
Your EOR provider should have a strong presence in the countries where you wish to expand in the short-term and in the long run. In cases where they do not operate in your desired country, your growth might be hampered if you're locked into a contract you’re unhappy with. Some providers also charge fixed offboarding fees – it’s a good idea to ask whether this is the case before you commit to a provider.
Identify a company with comprehensive country coverage. For example, Playroll operates in over 180+ regions and offers the extensive coverage required to support your global ambitions.
An ideal EOR should help you hire both full-time employees and contractors legally. This flexibility is essential as your workforce needs may evolve over time. It’s much easier to use one service provider that can cater for all potential needs, than having to choose different providers to hire full-time employees and contractors.
Additionally, the EOR provider should be able to assist with classifying your workers correctly to avoid the penalties associated with misclassifying employees as contractors, and convert contractors to full-time employees if needed.
Check that your chosen EOR provider will support hiring different types of workers, in all the regions you’re interested in.
Competitive employee benefits are a key component of attracting and retaining top talent. Your EOR should offer a comprehensive benefits package that includes both local benefits and global options.
Enquire about additional services like benefits management and visa support. The more robust and flexible the benefits, the better equipped you’ll be to support your international team no matter any curveballs that might come your way.
Timely and accurate payroll is a non-negotiable part of your day-to-day operations when managing a global workforce. Having delayed and faulty payroll can result in great reputational harm to your business and potential legal fallout. Ensure the EOR has a proven track record of paying employees on time and offers a user-friendly payroll system.
Before committing, ask for a demonstration of how their payroll system works and whether it provides a clear view of all transactions in one place. Ask how their invoicing system works, as some providers can make this needlessly complex.
Your data should always be safe, and data security is an important consideration while choosing an EOR. Ensure this by checking the certifications the EOR holds, such as GDPR and SOC2, and inquire about the measures they take to protect your Intellectual Property. An EOR provider should guarantee that all contracts are compliantly set up to ensure your IP will belong to you.
Be wary of EORs that rely heavily on third-party partners since this can increase the risk of data security issues.
Compliance with local labor laws is one of the main reasons to partner with an EOR. The right EOR should have a team of experts on hand to help you navigate challenges such as employee misclassification risk, and meeting all compliance requirements in new markets. Again, be sure to check if the EOR provider has a track record of quick response times, as you might need fast support when it comes to questions of compliance.
Ask about their legal expertise in the specific countries you’re interested in and how they help you stay compliant with local regulations.
Employment contracts can vary across different regions and your EOR should be flexible to your specific needs and can create customized agreements if needed. Ask about their process for amending contracts and how long it typically takes.
Flexibility in this area ensures your contracts are aligned with both local laws and your business objectives.
Employee terminations can be difficult and complicated, making it a matter that should be handled carefully. Ensure the EOR has a clear and compliant process for managing terminations, including support for both the employer and the employee during the offboarding process. Understand this process thoroughly before entering into a partnership to prevent legal issues in the future.
If you're considering moving an employee from an EOR to one of your own entities, many EOR providers require a ‘resign and rehire’ process. During this process, the employee resigns from the EOR and is rehired by your entity. This approach can complicate the businesses’ relationship with the employee.
Clarify with the EOR if they offer a flexible transfer process.
Choosing the right EOR partner is fundamental for your business’s global expansion. Playroll stands out by meeting the criteria mentioned above, offering extensive country coverage at 180+ regions with a robust network of wholly owned entities.
Enjoy transparent, best-in-class pricing, dedicated support for employees and employees, and a flexible approach to employment contracts – with a team of HR, finance and legal experts on hand every step of the way.
Compare EOR providers and book a demo with Playroll today to explore how we can support your international growth.
Read Time
August 15, 2024
Establishing a foreign subsidiary is the traditional route to expanding globally as a business. While it’s one way to grow as a company and establish your reputation as a global employer, the process can be lengthy, complicated and requires significant resources as a business.
This article will deep-dive into the pros and cons of establishing a foreign subsidiary and the steps involved in setting one up. Plus, we outline alternatives that can save significant time and cost when expanding into new markets.
A foreign subsidiary is a separate legal entity established by a parent company in another country. It operates independently but remains under the control of the parent company. Establishing such a subsidiary allows businesses to access new markets, mitigate risks, and optimize tax benefits.
Companies often choose between wholly owned subsidiaries, where they hold 100% control, partially owned subsidiaries, shared with local partners, or joint ventures formed in collaboration with other entities.
Companies typically establish foreign subsidiaries to access new markets, mitigate their risks and optimize tax benefits.
Types of Subsidiaries:
A foreign branch is not a separate legal entity and the parent company bears full liability for its operations. In contrast, a foreign subsidiary is a distinct legal entity, providing better legal protection and compliance independence. Understanding these differences is crucial for businesses to make informed decisions about their global expansion strategy.
Creating a foreign subsidiary can open up your business to permanent establishment (PE) risk, which subjects the parent company to local taxation and regulatory requirements. This risk underscores the importance of thorough research and compliance with local laws to avoid unexpected liabilities.
Establishing a foreign subsidiary involves high initial setup costs, ongoing operational expenses, and extensive research to ensure compliance with local regulations. The time-consuming nature of these tasks can strain resources and delay market entry.
Cultural differences may also pose integration challenges, impacting organizational cohesion. Additionally, closing down a foreign subsidiary can be a complicated and costly process, requiring careful consideration and planning.
Despite the challenges, establishing a foreign subsidiary offer benefits too. They provide access to new markets, enabling businesses to expand their global presence and reach new customers. Subsidiaries can also offer tax benefits, taking advantage of favorable local tax regimes.
By operating as a separate legal entity, a subsidiary reduces the parent company's legal risks. This structure allows for better division of labor and resource allocation, enhancing operational efficiency. Moreover, having a local subsidiary builds trust and credibility with customers in the new market, fostering brand loyalty.
Often, it makes sense to open a foreign subsidiary if you're planning to hire many new employees in a new market, to justify the investment in time and cost.
To establish a foreign subsidiary, businesses must conduct preliminary research into the target market to understand local employment practices and compliance requirements. Forming an expansion team and planning the hiring strategy for the new market is essential. Ensuring compliance with local labor laws will usually involve consulting with your own appointed team of legal, financial, and tax experts.
Deciding on the appropriate entity structure, such as an LLC or corporation, is a critical step. Securing funding for both setup and operational costs is necessary, along with appointing a board of directors and management team.
Gathering all necessary documentation, including business plans and legal agreements, and registering with local authorities are vital steps in the process. Finally, setting up operations involves hiring employees, establishing offices and infrastructure, and developing local partnerships.
For businesses seeking a less complex and cost-effective approach to hiring internationally, there are two alternative solutions:
Employing contractors allows businesses to manage overseas operations without establishing a legal entity, though it’s only suitable if you’re looking for support with short-term projects. Treating contractors the same as a full-time employee carries misclassification risks.
An Employer Of Record is a third party service that assumes all employer responsibilities on your behalf in new regions, handling payroll, taxes, and compliance with local employment laws.
It offers a route to quick market entry and vastly reduces the financial and administrative burden for businesses, offering an alternative to the traditional method of establishing legal entities.
Companies often use Employer Of Record services for the following reasons:
Playroll's EOR services can be a strategic solution for businesses looking to expand globally without worrying about the complexities of setting up a foreign subsidiary.
Playroll has a global footprint in 180+ regions, and teams of experts on hand to help navigate international hiring and ensure you stay fully compliant – with direct support for employers and employees, every step of the way. Hire, pay and manage a global workforce, all in one platform.
Speak to our experts to find out how Playroll can help you scale your global workforce.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Read Time
September 3, 2024
Recruiting and retaining talent in countries with free healthcare means lower healthcare-related costs for business, fewer sick days, and little-to-no absence from work. That can help companies build a motivated, satisfied, and more stable workforce.
According to the Bureau of Labor Statistics, 43% of businesses in the U.S. use a bi-weekly pay schedule, while 19.8% use semi-monthly payroll.
Choosing the right payroll schedule helps businesses manage their financial commitments and overall administrative workload while driving employee satisfaction. Semi-monthly vs bi-weekly pay schedules are the most common. Both are great, and the one you choose depends on your industry, company size, number and type of employees, and payday regulations in your region.
With a semi-monthly payroll, employees receive payment twice a month. Paychecks are distributed on fixed dates, say 1st and 15th, or 15th and 30th.
Bi-weekly payroll means that employees are paid once every two weeks. Paychecks are distributed every other week, usually on a Friday.
This article delves into the strengths and weaknesses of semi-monthly vs bi-weekly payroll. By the end, you’ll be able to make an informed decision and choose a payroll schedule that aligns with your business goals and workforce needs.
As mentioned above, bi-weekly payroll distributes employee paychecks every other Friday. Paying employees once in two weeks results in 26 pay periods per year. This pay schedule is favored by most U.S. companies as it ensures employees are frequently paid without burdening HR teams with excessive admin work.
A bi-weekly payroll works fine for companies that regularly hire a lot of new hourly and salaried employees.
More frequent payments: Payroll is processed every 14 days, the same day of the week. Such a predictable pay cycle enables employers to prepare and distribute paychecks accordingly.
Employees are paid twice a month on specific dates, with many companies choosing the 1st and the 15th of the month. That results in 24 pay periods per year. Sometimes, paydays may fall on weekends or holidays. Thus, HR teams have to monitor pay dates and make adjustments to ensure timely pay.
Semi-monthly payroll may be a great choice for businesses with employee benefits deductions, such as health insurance and retirement contributions. Paydays align with monthly financial reporting, making it easier to deduct and report deductions from employees’ paychecks.
Several factors come into play when choosing between semi-monthly vs bi-weekly payroll. Below is a list of top factors that influence payroll choice.
Below are the key considerations and best practices for implementing an effective payroll schedule:
Playroll is an innovative global employment platform that offers EOR services and global payroll solutions to help you hire and manage global teams through:
Book a chat with our experts to find out how you can scale your global team with ease.
Remote working is increasingly becoming ingrained in the UK corporate culture. According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.
Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.
That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.
Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.
This article covers the seven types of remote administration tools for businesses in 2024 and beyond.
Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.
For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.
Reliable communication and collaboration tools to check include:
With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.
From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.
The best remote management tools in this category include:
The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.
Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.
Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:
Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.
Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.
That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.
The best remote management tools in this category include:
Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.
That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers.
Top remote desktop and access tools include:
If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.
They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.
That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.
Best remote management tools for employee monitoring include:
With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.
These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:
As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.
Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams. Request a demo to see how you can optimize your remote management with Playroll.
Understanding the average maternity leave by country helps employers grasp the global landscape, ensuring their policies are competitive and in line with international standards.
According to the ILO (International Labour Organization) standards, maternity leave is a universal human and labor right and should last at least 14 weeks. Still, the ILO recommends increasing that period to 18 weeks of paid parental leave so the mother can have more time to rest and recover properly.
However, regarding maternity leave requirements, two variables change between the 152 countries that offer the benefit: leave duration and financial compensation. During said leave, the mother can either be fully paid maternity leave, paid in part, or not paid at all.
To guarantee compliance, employers must keep up-to-date with each country's maternity leave laws. Here are some examples of maternity leave by country around the world. This section highlights the differences in paid maternity leave by country, illustrating how compensation during leave varies globally.
Evaluating the best maternity leave by country allows employers to understand which nations offer the most comprehensive support for new mothers, setting a benchmark for global maternity policies.
Also Read: What Are the Best Countries for Maternity Leave?
Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.
Pregnant workers may feel entitled to take legal action if they are treated less favorably due to their pregnancy or family responsibilities or if they’re asked to perform tasks not suitable for someone in their state.
Some countries allow employees to take more leave in exchange for disadvantages, such as not being paid for the extra time or pausing their career progression.
In addition to paid maternity leave, 63% of countries offer parental leave. However, the leave duration is often smaller than the mother’s, usually under three weeks of maternity leave.
This is one of the more important things to keep track of. Every mother has the right to return to her previous position upon returning to work, no matter how much time she spends on leave.
A great thing to do when implementing maternity leave policies in your company is to plan and disclose everything in advance. That way, you can ensure you and your team are up-to-date with all respective duties and procedures, avoiding any possible hiccups.
Here are some tips that will help you through this process:
● Previously define those eligible for a paid maternity leave, stating criteria such as length of service, full-time status, etc.
● Establish the leave duration, including possible extensions and other additional arrangements.
● Declare the pay and all the benefits employees receive during the maternity leave beforehand.
● Specify the notice requirements. Let your team know when they should inform you about their pregnancy and when they plan on taking maternity leave.
● Assure job protection. Your employees must know their positions will remain secure.
● Adapt your company to better accommodate pregnant employees and those returning from maternity leave. The gold standard is creating flexible work schedules.
Maternity leave policies have evolved significantly in recent years to reflect the changing dynamics of the modern workforce. With globalization and the rise of remote work, employers face new challenges in managing maternity leave across borders and in diverse cultural contexts. Here are some challenges that global employers may encounter and tips on how to deal with them.
The advent of remote work has blurred traditional boundaries, presenting opportunities and challenges for managing maternity leave. Remote employees may require flexible arrangements to balance work and caregiving responsibilities effectively.
Employers should prioritize communication and collaboration, offering remote-friendly maternity leave policies that accommodate the unique needs of remote workers.
In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.
Legal risks associated with maternity leave include potential discrimination claims, wrongful termination lawsuits, and labor law violations. Employers must take proactive steps to mitigate these risks by implementing fair and equitable maternity leave policies, providing adequate training to managers, and fostering a culture of inclusion and diversity within the organization.
While maternity leave is typically associated with birth mothers, it's essential to recognize the importance of supporting fathers and non-birth parents in parental leave policies. Employers should offer gender-neutral parental leave benefits that enable all parents to bond with their newborns and support their families.
By encouraging fathers and non-birth parents to take advantage of parental leave, employers can promote gender equality, strengthen family bonds, and create a more inclusive workplace for all employees.
In an increasingly interconnected and diverse world, managing maternity leave requires a nuanced understanding of legal, cultural, and societal factors. Employers must prioritize compliance, equity, and inclusion, recognizing the role of maternity leave in supporting working parents and promoting gender equality.
That’s where Playroll comes in. Our expert and global team of HR professionals are ready to help you safely navigate maternal leave and offer your international workforce all the benefits they seek. Don’t worry about all the legal hurdles: count on us. Request a demo today.
Read Time
February 29, 2024
In a significant 2023 breakthrough, Spain introduced a digital nomad visa, revolutionizing the remote work landscape and solidifying its status as a premier destination for global nomads. This game-changing policy caters to modern digital workers' lifestyles and opens up new vistas for understanding and managing tax obligations in Spain.
Dive into the essentials of this new era, where Spain doesn't just promise sun and culture but a comprehensive framework for digital nomads to thrive financially and legally.
Spain's recent enactment of the Startup Law marks a significant pivot towards embracing the digital nomad lifestyle, offering a fresh perspective on tax obligations for remote workers from across the globe. This groundbreaking legislation simplifies the process of living and working in Spain through a specialized digital nomad visa. Also, it introduces enticing tax benefits, signaling Spain's commitment to becoming a hub for digital innovation and international talent.
Under this new law, digital nomads are granted the opportunity to live and work in Spain with greater ease than ever before. The digital nomad visa, a highlight of the Startup Law, permits non-EU/EEA remote workers and freelancers to reside in Spain for up to five years. This visa facilitates an extended stay in Spain and allows the visa holders to include family members, travel within the Schengen Zone, and access previously unavailable tax benefits.
Furthermore, the law simplifies the tax landscape for digital nomads, potentially lowering their tax liabilities and offering a clearer path to financial planning while in Spain. With requirements such as proving a sustainable income of at least €2,500 per month and possessing a clean criminal record, the law sets a framework that ensures digital nomads' security and economic contribution to Spain.
This strategic move enhances Spain's appeal as a destination for digital nomads and aligns with the country's broader objectives to boost entrepreneurship and attract foreign investments. As a result, Spain is rapidly becoming one of the most sought-after countries for digital nomads seeking the joy of Mediterranean life and the benefits of a supportive legal and tax environment.
The Startup Law is a game-changer for digital nomads eyeing Spain as their next destination or home base. The law's comprehensive benefits package caters to the unique needs of remote workers. This initiative underscores Spain's commitment to attracting skilled professionals and fostering a diverse, dynamic expat community.
In assessing eligibility for certain tax benefits, digital nomads should be aware of the 'bona fide residence test' and the 'physical presence test' commonly used in international tax law. These tests help determine a taxpayer's tax residency status and eligibility for exclusions like the foreign earned income exclusion. While the specifics of these tests might not apply directly under Spanish law, understanding their principles can be beneficial for digital nomads managing their worldwide income tax obligations.
The tax benefits introduced under Spain's Startup Law aim to significantly alleviate the fiscal responsibilities of digital nomads who choose Spain as their base. These special tax considerations are designed with the modern remote worker in mind, offering a range of incentives that make Spain an even more attractive destination:
Embarking on the journey to obtain the digital nomad visa under Spain’s Startup Law involves several steps. Starting with eligibility assessment and document collection, the process is designed to be thorough yet straightforward, ensuring applicants are well-prepared for their new adventure.
By following each step, digital nomads can confidently navigate the bureaucratic waters, setting the stage for a successful and enriching experience in Spain.
While the law introduces tax benefits and potentially reduced rates, navigating the tax landscape requires careful planning and compliance. With the right approach, digital nomads can optimize their tax situation.
For digital nomads establishing tax residency in Spain, it's important to understand how Spain's tax laws interact with international taxation standards, such as the '330 days rule' associated with the physical presence test. This rule, often crucial in determining one’s tax obligations in their home country, particularly for U.S. citizens, can influence how digital nomads plan their stays and manage their tax liabilities across borders. While Spain's Startup Law provides a framework for reduced tax rates and exemptions, digital nomads should also consider how their days spent in and out of the country impact their tax status globally.
Navigating the tax landscape in Spain as a digital nomad can be smooth with the proper preparation and resources. Here’s how to stay ahead:
Embrace these tips and resources to navigate Spain’s tax system confidently, making your digital nomad experience as fulfilling and hassle-free as possible.
The Startup Law represents a significant positive shift for digital nomads considering Spain as their base. By understanding the benefits, following the application process carefully, and being mindful of tax obligations, digital nomads can make the most of what Spain has to offer.
For those looking for expert guidance tailored to the unique needs of digital nomads, Playroll offers comprehensive solutions designed to simplify your tax and payroll processes, allowing you to focus on what you do best: exploring the world and thriving in your remote work endeavors.
Ready to navigate your tax journey in Spain with ease? Request a demo with Playroll today and discover personalized assistance and solutions tailored specifically for digital nomads like you in Spain.
Contractor management software is a digital solution that helps businesses manage the entire lifecycle of hiring, managing, and paying contractors. Some typical features of contractor management systems include automated manual processes such as setting up contractor agreements, making payments and conducting compliance checks.
It’s tempting to manage contractors yourself to save costs as a business. However, going the manual route can quickly get time-consuming, and it’s especially risky if you’re hiring contractors in multiple countries. Contractor management software can offer the following benefits over managing everything yourself:
We admit our bias, but have a proven track record of success behind our name as a standout global employment solution to compliantly hire workers across the globe – which includes our all-in-one platform for contractor management.
With Playroll, we’re not just getting lower costs but a true service-oriented mindset. You don't know what you're missing until you meet Playroll.
Sherene Binni, Senior Office Manager & HR People Partner, Exalate
With Playroll’s contractor management system, you can hire and pay international contractors in 180+ countries. Managing and paying your team is made easy with automated contract creation, global payments in 50+ currencies, and an intuitive platform to manage work for all your contractors in one place.
When setting up your contractor agreements, Playroll does the heavy lifting to ensure compliance with local labor laws. Each client gets their own dedicated Customer Success Manager, at no extra cost, for ongoing support.
Playroll also offers Employer Of Record (EOR) services to hire full-time employees, making it easier to scale your workforce for any type of employment need.
Pricing: $35 p/contractor. Flat fee per month.
Fiverr offers a large marketplace that allows businesses to connect with freelancers worldwide. It’s easy to navigate with advanced filtering options, making it a popular choice for companies that want quick access to talent and browse freelancers by category.
However, managing larger teams of contractors through Fiverr may require additional tools for tracking and contractor management. They also do not offer comprehensive compliance support when hiring international contractors.
Pricing: Base service fees of 5.5% per purchase amount. For purchases under $100, an additional $3.00 is added per purchase.
Upwork provides project management tools and time tracking to help businesses manage contractors. With access to a large talent pool, it’s a great platform for finding specialized skills or purchasing ready-made projects.
On the downside, managing payments across international borders may require third-party tools. They don’t offer compliance support for hiring international contractors. Upwork also charges high fees for its premium features, including dedicated support and customized reporting.
Pricing: Between 5-10% service fees, some plans include contract initiation fees per contract. Custom fees for enterprise customers.
Deel is a well-known platform designed for managing international contractors and employees. It automates multi-currency payments, has comprehensive compliance support, and offers an intuitive dashboard for tracking contractor performance and agreements in one place.
On the downside, they charge high fees for contractor management, starting from $49 per contractor/month, as opposed to the flat fees other providers offer. They’ve also received reviews of high exchange fees and unexpected fees. This can make it hard to properly budget for their services.
Pricing: Starts from $49 per contractor/month.
Rippling is a workforce management system that also offers services to hire, pay and manage international contractors. It offers advanced capabilities to automate payment processing and compliance checks. They offer a wide range of products, including IT and finance management, that can make them a good fit for businesses looking for one platform to handle multiple aspects of their workforce.
On the other hand, Rippling has received public reviews on the steep learning curve of its products, with many products that are difficult to navigate. They do not publicly disclose their pricing, making it hard to make a straightforward assessment of whether their services fit into your budget.
Pricing: Not publicly disclosed.
While there are many strong contractor management solutions on the market, Playroll stands out for its competitive pricing, dedicated support to businesses of all sizes – and built-in compliance to hiring globally.
While hiring independent contractors comes with many perks, government authorities worldwide have started clamping down on the issue of misclassification of employees as contractors, which can open up businesses to hefty penalties.
Playroll does free misclassification assessments to protect clients from these risks, helps set up compliant contractor agreements, and ensures that your IP belongs to you when working with contractors. Dedicated support in these areas comes free of charge, unlike many competitors. When hiring globally, these are essential features to scale your workforce without risk.
In addition, Playroll offers businesses the ability to hire full-time employees compliantly in 180+ countries, and can help convert your independent contractors to employees if needed. This helps your business remain flexible to any future workforce needs, without bringing any additional third-party services on board.
Book a chat with our team to find out how we can help you scale your global team, without the red tape.
Our comprehensive guide to employee misclassification include a checklist to distinguish correctly between employers and contractors, and top tips to avoid misclassification risks.
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In our first year, Playroll hit the ground running, quickly becoming a trusted leader in global compliance. With the VAT IT Group's 25 years of experience backing us, we entered the market as seasoned experts who understood the challenges businesses face when hiring internationally.
We’re competitively priced and built on VAT IT’s two decades of global hiring expertise. We weren’t starting from scratch—we knew the issues and used our wealth of knowledge to address them head-on. The question was: If not now, when? With the infrastructure, expertise, and passion in place, it was time to power global compliance with Playroll."
Brendon Silver, Co-Founder, Playroll
By launching our Employer of Record (EOR) and Contractor Management services, we aimed to disrupt the market with a seamless blend of technology and service. Our user-friendly platform and customer-first approach positioned Playroll as a human-centered solution designed to enhance the global employment experience from day one.
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In our second year, Playroll truly hit its stride, deepening partnerships with businesses of all sizes worldwide. We became a trusted ally, helping companies manage international teams while navigating the complexities of ever-changing local regulations.
Reflecting on this milestone, Brendon Silver, Co-Founder of Playroll, shared, “One of our proudest moments was successfully migrating a client from a competitor and securing our first customer with over 50 employees. Today, we're thriving across multiple regions and doing it with excellence.”
Year two was marked by significant growth. We introduced integrations with top HRIS platforms like BambooHR and HiBob, launched our Open API, and expanded our reach to over 110 countries. With thousands of employees and contractors now relying on our platform, we enhanced our services by rolling out localized benefits tailored to meet the growing demand. This year was all about scaling our vision and increasing our impact on the global employment landscape.
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At three years strong, Playroll is redefining the global employment landscape with a perfect balance of product innovation and human-centered excellence. We've truly come into our own, supporting businesses in over 180 countries and seamlessly onboarding thousands of employees and contractors.
We're showing our customers that you can trust your external HR provider completely. We care deeply about their success, respond quickly, and stay dedicated to their needs. EOR was just the beginning—global payroll is next!
Erez Golan, Co-Founder, Playroll
As we continue to grow, we're pushing the limits of what’s possible, creating advanced solutions that streamline payroll, compliance, and payments across borders. Playroll isn’t just keeping up with the industry—we're leading it, driving the future of global employment through innovation, care, and unwavering commitment. The journey has just begun!
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As we celebrate three years of Playroll, we’re not just reflecting on our successes—we’re charging full speed ahead into the future. With the confidence gained from our past milestones and the lessons we’ve learned along the way, Playroll is poised to continue reshaping the global employment space, pushing boundaries, and innovating like never before.
Reflecting on the company’s growth, Erez shared: 'Our journey has been like building a championship team, with everyone playing their part and putting in the work. While it's rewarding to see how far we’ve come, what excites us most is the potential that lies ahead.'
Success in business comes down to one simple formula: find the best talent, share a clear and inspiring vision, and then empower them to achieve it in their own unique way. When you give great people the freedom to use their skills, the possibilities are endless.
Brendon Silver, Co-Founder, Playroll
Here’s to the next chapter of bold growth, innovation, and reimagining what’s possible. The future is brighter than ever, and at Playroll, we’re just getting started! 🌍🚀
Employee misclassification is the incorrect categorization of a worker as an independent contractor when they should be classified as an employee due to the true nature of the relationship, regardless of the type of contract they had entered into. This misclassification occurs when companies fail to meet legal criteria that distinguish employees from contractors.
Why is this problematic?
Employee misclassification is particularly challenging because the criteria for determining employment status vary between countries and states.
For example, a worker classified as a contractor in the US may be seen as an employee in the UK based on local labor standards. Because these rules can be complex, many businesses rely on expert assistance to ensure compliance across different jurisdictions.
To avoid misclassifying employees as independent contractors, you first need to know how to distinguish between them. Here are the key differences:
Employees have income tax automatically deducted from their wages, while contractors are responsible for their own tax filings.
Employees follow strict guidelines from their employer on how and when to perform their tasks, while contractors have more flexibility and autonomy.
IP created by employees typically belongs to the employer, while IP created by contractors remains their own unless specified in contracts.
Employees are entitled to mandatory benefits such as health insurance, unemployment insurance, and workers' compensation, while contractors usually do not receive these same benefits.
Employees are also generally entitled to protection from discrimination and harassment, whilst contractors may not be afforded the same level of protection.
Correctly distinguishing between employees and contractors can get surprisingly complex: several tests exist for this reason, for example the Economic Reality Test test in the U.S.
There are, however, some common hallmarks of misclassification. Here’s your checklist of the most common questions that government authorities use to determine misclassification. If you’ve hired a contractor and find your answers aligning with the characteristics of an employee, it’s a red flag that they may be misclassified:
There are several risks to employee misclassification, whether unintentional or not – though the repercussions tend to be most severe if government authorities find that a business has intentionally misclassified workers or committed fraud.
Some of the repercussions can include:
Whilst any industry is susceptible to employee misclassification, in our experience, some industries have longer standing practices of misclassification than others or it’s generally more common.
For example, businesses in sales, IT, high-tech, hospitality, entertainment, logistics and construction industries should be especially aware of misclassification risks.
Penalties for employee misclassification differ between countries but can include financial fines, tax penalties, and reputational damage. For example:
The IRS imposes heavy fines for unpaid payroll taxes, along with penalties for failure to provide benefits like health insurance or workers' compensation. The Wage and Hour Division of the U.S. The Department of Labor also actively pursues claims. For example, you can be subject to a $50 fine for each unfiled Form W-2, or charged a percentage of wages.
Companies may face penalties under the UK’s Employment Rights Act, including paying back-pay for lost wages, holiday pay, and missed pension contributions.
Penalties vary but may include large fines, repayment of lost unemployment insurance benefits, and damage to the company’s standing with labor unions.
Several notable legal cases highlight the consequences of misclassifying employees:
There are several measures you can take as a business to avoid the pitfalls of misclassification. These include:
Ensuring compliance and the correct classification starts at the recruitment and onboarding stages. When hiring contractors, make sure your contractor agreement is set up correctly in line with local labor laws. It should cover, amongst others (see checklist above):
In a worst-case scenario, a robust contractor agreement can be used in your defense in legal cases – assuming you truly haven’t misclassified the worker.
Whilst the content of the contractor agreement is important, employers should still be aware of the “substance over form” principle, discussed above, and determine if it is applicable in the countries in which they hire individuals.
Employment laws are constantly evolving, especially in the context of remote work.
Spend time researching local regulations for the regions you’re interested in, before taking the next step and hiring an independent contractor or employee.
Regularly review the status of all your workers to ensure they are correctly classified. Make sure this forms part of your standard policies or procedures, and assign ownership of the audit to a specific person or department so these checks don’t fall through the cracks of your business.
If a contractor's role has evolved to more closely resemble that of an employee, consider offering them a formal employment contract. This can also hold the following benefits:
It can take significant time and resources to stay compliant as a global business when hiring remote workers. That’s why many businesses choose to use global employment services like Playroll, that have experts on-hand to help you make sense of local labor laws and stay fully compliant when hiring across borders.
I always feel completely calm and safe with Playroll, which is very important to me and the people we employ. I have complete trust that everything is done by the law.
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Violeta Cirkovic, HR Generalist, Two Desperados
Employee misclassification can get complicated, but it doesn’t have to be a bottleneck to scale your global team.
Playroll can help businesses sidestep employee misclassification risk by ensuring compliance with employment laws in over 180 countries. No matter what type of worker you want to hire, Playroll’s team of experts will do the heavy-lifting to ensure your workforce is correctly classified and compliant – freeing you up to focus on your business growth.
Book a free chat with our team and get a compliance consultation, to ensure your business is not at risk of misclassification.
In Spain, employee benefits are divided into mandatory and supplemental categories. Mandatory benefits are stipulated by the Spanish Workers’ Statute (Estatuto de los Trabajadores). In contrast, supplemental benefits are often offered to enhance compensation packages and remain competitive in the job market.
Not all Spanish employees are entitled to the same benefits. For example, Spanish full-time employees work an average of 40 hours per week. These types of Spanish employees are entitled to all statutory benefits including maternity/paternity leave, annual leave, and paid sick leave under Spanish law.
On the other hand, part-time employees are defined as Spanish employees who work up to 20 hours per week. These employees receive proportional benefits, based on the hours worked, in line with Spanish law.
Contractors and freelancers (autónomo) in Spain work independently of any employing entity. In Spain, these workers can sign up to a special scheme for freelancers called RETA. This regime requires that freelancers contribute a specified amount to the social security system (Tesorería General de la Seguridad Social – TGSS). In exchange, they can enjoy benefits provided by the system such as medical treatment, sick pay, and retirement.
Mandatory employee benefits in Spain are statutory requirements outlined by labor laws, ensuring employees receive basic rights such as paid time off, leave for family-related events, and social security.
Spanish labor law ensures that new mothers receive 16 weeks of paid maternity leave after the birth or adoption of their child. There is an additional guarantee of two extra weeks of paid leave per child in cases where the mother gives birth to multiple babies or babies born with disabilities.
Paternity leave (or “partner leave” as it is officially called by the Spanish government) has recently also been extended to 16 weeks of paid leave, to accommodate fathers of newborn or adopted children. Both types of leave are funded by the country’s Social Security.
Employees in Spain are entitled to 30 calendar days or 22 working days of paid annual leave each year, as outlined in the Workers’ Statute (Estatuto de los Trabajadores). However, the Collective Bargaining Agreements (CBAs) may secure additional days for workers in certain industries.
Employees unable to work due to illness are eligible for paid sick leave. This is typically covered by the Social Security system, with up to 18 months of paid sick leave depending on the severity of the illness. The first three days of sick leave are unpaid. The employee can receive 60% of pay between the fourth and 20th day and is eligible to receive 75% of pay from the 20th day onward.
In addition to paid annual leave, Spanish employees are entitled to up to 14 paid days off in observance of national holidays (that are region-specific). All Spanish employees must be allowed to celebrate the nine nationwide holidays such as New Year’s Day (Año Nuevo), Good Friday (Viernes Santo), and Labor Day (Día del Trabajo). Other holidays granted to employees are dependent on provincial and regional customs.
In Spain, the social security fund is made up of several funds that address various aspects of employees’ lives such as illness, unemployment, disability, and retirement.
Employers contribute 30.48% and employees contribute 6.47% (a total of 36.95%) towards INSS contributions.
Workers’ compensation is also referred to as Collective Agreement Accident Insurance (Seguro de Accidentes de Convenios Colectivos) because the provisions are usually dependent on the outcome of CBA negotiations for specific industries.
This insurance provides healthcare and financial support to individuals who have suffered from job-related accidents and illnesses that prevent them from working.
While this pay is usually an additional perk in other countries, employers are required to provide their workers with two annual bonuses (13th and 14-month pay). Each bonus is equal to one month of an employee’s salary and is also subject to income tax.
While mandatory benefits ensure basic rights, supplemental employee benefits can significantly enhance a compensation package and help attract top talent. Common non-mandatory benefits in Spain include:
Employers often provide additional health benefits, such as private medical insurance, to cover employees and their families, complementing the public healthcare system. Health insurance can cost Spanish employees an additional 100 to 200 euros per month so offering private health insurance will be greatly valued by employees. Private healthcare gives employees access to better quality healthcare (when compared to Spain’s public healthcare system).
An additional benefit that addresses employees’ physical health can make your compensation package more competitive. This can involve offering your employees additional medical coverage that includes expenses such as dental, vision, and disability that are not covered by mandatory health insurance.
Spanish federal labor law ensures paid leave in certain circumstances such as maternity and paternity leave. However, additional paid time off is a powerful benefit to add to your benefits package as additional days off help employees manage unforeseen circumstances or celebrations in their personal lives. This is sure to boost company morale and improve employee work-life balance.
Many employers in Spain offer private pension plans to supplement the mandatory public pension system.
Certain employee benefits, such as pagas extraordinarias (extra pay), and meal vouchers, can have tax advantages for both employers and employees in Spain. Employers may receive tax deductions for offering specific benefits like private health insurance or childcare and meal vouchers, reducing the overall cost of providing supplemental benefits.
Compliance with Spanish labor laws is crucial when offering employee benefits. Employers must adhere to regulations outlined in the Estatuto de los Trabajadores (The Worker’s Statutes) and ensure they meet legal obligations. Spanish labor law requires that employers provide base-level benefits to their employees. If employers fail to do so, this can lead to penalties, including fines and legal disputes.
Mandatory benefits are merely the bare minimum as outlined by Spanish Federal law. Employers can and should consider offering additional perks to their employees.
Daunted by the complexity and red tape of complying with local labor laws? Playroll does the heavy lifting to ensure you always tick the box on compliance, so you can focus on building your business.
To remain competitive in the Spanish market, companies often provide additional perks, including:
Employee benefits significantly contribute to the total cost of hiring in Spain. On average, statutory and supplemental benefits can account for around 30-40% of an employee's total compensation.
For a detailed breakdown of how benefits affect your employer costs, use Playroll’s Free Global Employee Cost Calculator for country comparisons.
Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.
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Managing employee benefits can be overwhelming, but Playroll simplifies the process. With a presence in over 180 countries, our platform ensures seamless onboarding, payroll, and benefits administration. Playroll ensures compliance with local labor laws while providing a competitive edge through attractive, localized benefits.
Book a chat with our team to learn how we can scale your global team with ease.
An Employer Of Record (EOR) is a third-party service that assumes all employer responsibilities on behalf of another business, including payroll and benefits management for employees. EOR services are widely used by companies that are hiring employees internationally, without the hassle, time and cost of establishing a legal entity first.
The EOR acts as the legal employer paper, while you manage the employee's daily activities.
Yes, we admit our bias, but can point to a proven track record of success when it comes to compliantly employing, managing and paying remote teams for businesses of any shape and size.
Playroll simplified our expansion into new markets by providing a comprehensive understanding of local regulations. Through this partnership, we could immediately tick the box on compliance, at no risk to BET Software.
Gizelle Govender, Senior People Partner, BET Software
As a global Employer Of Record, Playroll stands out for its cost effective pricing, without compromising on the quality of its EOR services or support. It offers truly human customer support for both employers and employees to simplify international employment. This is in contrast to many competitors that rely on ticketing systems, do not offer dedicated support, or upcharge for support. We are uncommonly flexible when it comes to the needs of our customers, going the extra mile to customize contracts and facilitating transfers between EOR and client entities as needed.
Playroll’s user-friendly platform allows you to employ, pay and manage employees and contractors alike in 180+ countries, and provides a team of experts that ensures compliance with shifting employment regulations. Other services include comprehensive localized benefits packages, immigration support, and streamlining global payroll operations.
Pricing: From $399 per month, per employee. No annual commitment required for affordable prices.
Papaya Global is especially known for its comprehensive support in payroll processing, and is innovative when it comes to integrating AI within HR tech. They have a broad range of customization options available to customers.
On the downside, Papaya Global relies fully on third party partners to provide their services, instead of having its own infrastructure of owned entities. This can mean extra fees being passed on to customers, on top of already hefty monthly EOR fees. It also means the EOR provider always has to liaise with third-party partners when providing customer support, which can significantly delay their response times.
Pricing: From $599/month, per employee.
G-P is a popular EOR choice that offers a broad range of products. They split their EOR services between a core and premium offering. This can be useful for businesses that are looking for a broad range of options to pick and choose from. They also have many options to tweak and customize services, and advanced data analytics.
Globalization Partners does have its cons. Their pricing is complex and obscure, with reports of high monthly fees. Many of their EOR features are only available with their premium product, and they’ve received some negative feedback for slow customer service. Overall, this could make them a poor fit for smaller companies that have more limited resources and require more hands-on support to make their first international hires.
Pricing: Not publicly disclosed.
OysterHR is known for their fun branding and user-friendly platform, with quick onboarding times reported. They have a wide country coverage, and solid compliance credentials behind their name.
On the other hand, they are priced at the upper end of the market for their EOR services, which can quickly prove to be a financial bottleneck for companies hoping to hire more than just a handful of international employees. In addition, there have been some reports of payroll mistakes and delays on public review sites.
Pricing: From $599/month, per employee if paying annually. Monthly plans are priced from $699 p/month.
Remote is a well-known EOR provider, with a focus on providing services through their own network of owned entities, which can be useful for businesses that want to avoid dealing with any additional third parties in the equation.
On the downside, their EOR fees are very high compared to some other names in the business, and they have received some negative reviews on slow customer service and multiple points of contact. They also don’t offer a very wide network of country coverage for EOR services, with less than 100 countries covered, which can limit your ability to scale as a business.
Pricing: From $599/month, per employee.
Deel is another well-established player in the EOR space, offering options to manage full-time employees and contractors in 150+ regions. They can be a good fit for businesses looking for an EOR partner with many owned entities, and a comprehensive range of integrations.
That said, Deel’s fees are expensive and require annual commitments for cheaper pricing, and they’ve received many negative reviews of hidden fees and unexpected costs. This can make it hard to properly budget for their services, and can prove too expensive for smaller businesses looking to scale globally.
Pricing: From $499/month, per employee if paying annually. Monthly plans are pricier, at $599 p/month.
Rippling is a popular workforce management solution, and is especially known for their broad range of products that include payroll, finance and IT management. This can make them a good choice for companies looking for a single solution to workforce management.
If you’re looking for a specialist in global employment and EOR services though, there are some cons to consider. Their pricing is not publicly disclosed, though high fees are reported – and they’ve received negative reviews of a bloated product with a steep learning curve, as well as payroll errors.
Pricing: Not publicly disclosed.
Velocity Global stands out for its wide country coverage as an EOR provider, at 185+ regions, which can make them a good choice for employers interested in stable support for any future growth plans.
They are another example of an EOR provider that doesn’t disclose their pricing publicly, with reports of steep monthly fees. Another downside is the many negative reviews they’ve received for slow customer service and multiple points of contact, which can make them a frustrating provider to deal with if you value quick response times to enquiries.
Pricing: Not publicly disclosed.
Multiplier offers good pricing for the EOR services, and has a solid library of extra global hiring resources available for employers. They also have all compliance credentials needed to mitigate risk for employers looking to hire internationally.
On the other hand, they take a complex approach to invoicing, and have received some reviews of slow and faulty payroll services. They’ve also received negative feedback on slow customer service. Overall, this can mean risk to your business if you value simple, timely payroll for employees.
Pricing: From $400/month, per employee.
WorkMotion is an EOR service that specializes in supporting European companies, and can also assist with in-country registrations – which can make them a good choice for EU companies looking to expand their business.
As for its cons, WorkMotion charges very high EOR fees that only become more affordable when hiring many employees. They also don’t offer any support in hiring independent contractors, which can be detrimental to businesses that are looking for a single service to hire any type of worker across the globe. Lastly, they don’t have SOC2 certification, which many businesses require to safeguard their data when working with EOR providers.
Pricing: €649 p/month ($724) per employee for up to 4 employees. Price decreases if onboarding more people.
Playroll ticks the boxes on robust compliance, broad country coverage and many owned entities. This is similar to many of the competitors mentioned on this list, and are some of the standard offerings you should look out for when choosing an EOR provider that offers comprehensive services.
Overall, though there are many strong EOR contenders on the market, Playroll stands out for its competitive pricing, as well as its on-the-ground support for businesses of all sizes – with dedicated support and flexibility for both employers and employees.
We believe quality support is the single most important trait for an EOR provider, since EORs support businesses that are expanding into jurisdictions they’re often unfamiliar with. This means quick responses to tricky compliance questions, flexibility to customer needs and a truly human touch is invaluable.
Book a chat with our team to find out how we can help you scale your global team.
Compare the top EOR providers side-by-side, with a full breakdown on cost, support, coverage and more.
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Remote working is increasingly becoming ingrained in the UK corporate culture. According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.
Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.
That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.
Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.
This article covers the seven types of remote administration tools for businesses in 2024 and beyond.
Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.
For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.
Reliable communication and collaboration tools to check include:
With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.
From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.
The best remote management tools in this category include:
The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.
Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.
Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:
Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.
Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.
That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.
The best remote management tools in this category include:
Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.
That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers.
Top remote desktop and access tools include:
If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.
They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.
That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.
Best remote management tools for employee monitoring include:
With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.
These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:
As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.
Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams. Request a demo to see how you can optimize your remote management with Playroll.
In the U.S., employee benefits are divided between legally required employee benefits and supplemental benefits that vary depending on the state or the employer's discretion. Federally mandated benefits apply to all 50 states across the United States under federal law whereas benefits at a state level are dependent on the respective laws of the 50 states.
Federally mandated benefits are benefits that companies with full-time employees are legally required to provide to their workers. State-level requirements refer to benefits that may differ from one state to another. For example, employers in certain states (such as Colorado and New York) must provide paid leave to their employees due to state law.
Federal law and state law mandate certain benefits for full-time employees, while others, like voluntary benefits, are commonly offered to attract and retain talent.
Full-time employees are entitled to all statutory benefits, while part-time employees may qualify for limited benefits, such as workers' compensation or unemployment insurance. Benefit entitlements can also vary based on employer size and location.
As an employer, it is important to be able to distinguish the types of employees in your workforce. Full-time employees are =employees who work more than 35 hours a week whereas anyone who works less than 35 hours per week is considered a part-time employee.
These characteristics may differ from one business to another. In some cases, the law outlines the maximum number of hours an employee can work to be considered part-time. Once exceeded, they will be afforded the same benefits as full-time workers For example, the Fair Labor Standards Act (FLSA) states that non-exempt employees are entitled to overtime pay any time they work more than 40 hours per week.
Employers should take the time to understand what each mandatory benefit means to remain compliant with the law and provide the legally required employee benefits to their workers. These benefits were put in place to protect workers’ rights. Statutory employee benefits can be broken down into four subgroups namely:
Social Security is a federally mandated benefits program that provides income support for retired workers (and their dependents) as well as for workers with disabilities and survivor benefits. Both employers and employees contribute 6.2 percent of the employee's wages and self-employed individuals pay 12.4% of their earnings.
Medicare is a public health insurance program primarily for individuals aged 65 and older. Social Security taxes and contributions made by employers and employees fund this program.
This is a nationally mandated benefit that covers medical care for retired individuals and provides financial support to individuals affected by loss of work and disability. It also covers liabilities resulting from workplace injuries and illnesses. This disability insurance is mandatory in nearly all 50 states in the U.S. and protects employers from lawsuits related to workplace injuries.
The Family and Medical Leave Act (FMLA) states that eligible employees are entitled to 12 weeks of unpaid annual leave for specific family and medical reasons. These reasons include the birth of a child or caring for a family member with a serious illness.
To qualify for family and medical leave, an employee must have worked for their employer for at least 1,250 hours in the past 12 months and their employer must have 50 or more employees.
Unemployment insurance provides temporary financial assistance to workers who lose their jobs but are willing and able to work. It is funded through employer taxes of 6% on the initial $7,000 of an employee’s annual salary.
The 6% employer-only contribution exists at a federal government level, but the taxes paid towards the State Unemployment Tax Act (SUTA) differ between states.
It’s often not enough for an employer to only offer their workers statutory benefits. In order to attract the best talent in the U.S. and beyond the country’s borders, employers should think about which supplemental benefits are best suited to their workforce’s needs.
While employees in the U.S. are ensured social security benefits, most employees appreciate increased coverage from popular retirement plans such as 401(k)s. These retirement savings plans allow employees to save comprehensively for their futures, often through contribution-matching policies with their employers.
Certain businesses are required to provide health insurance coverage to their employees under the Affordable Care Act (ACA). Employers may go beyond this statutory requirement by providing broader coverage such as private health insurance to their employees. Offering private healthcare is highly valuable to employees given the high cost of healthcare in the States. According to the Centers for Disease Control and Prevention (CDC), 12.2 % of Americans in the workforce did not have health insurance in 2022.
This highly desirable benefit typically includes paid vacation days, sick leave, and personal days for employees. While this benefit is not legally required, it certainly helps improve employees’ work-life balance and general well-being.
A basic employee healthcare plan may not include vision and dental coverage. If this is the case in your business, consider offering your employees this additional coverage that will give them access to optometric and dental care.
Equity benefits are an investment opportunity that employers can present to their employees in the form of non-cash payments. When implemented, this benefit makes employees partial owners of the company they work for. As an added bonus, employees tend to be more motivated to ensure the company’s growth if they have a personal stake in it.
Employee benefits in the U.S. can have tax implications. For instance, fringe benefits like health insurance and retirement contributions are often tax-deductible for employers. Additionally, some benefits may qualify for tax breaks or incentives, helping companies, like small businesses, manage the cost of offering comprehensive benefits packages.
The Internal Revenue Service (IRS) clearly outlines that any benefit provided by an employer is subject to employment taxes and must be included in the employee’s pay unless it is categorized as an excluded benefit by the IRS.
Failure to provide required benefits can result in severe penalties for employers. The consequences for neglecting to provide employees with benefits vary by state and type of benefit.
For example, failing to provide adequate Workers’ Compensation Insurance is considered a criminal offense in California, New Jersey, and Pennsylvania. Offenders can be subject to fines of $10,000 and prison time in some cases.
Some employers intentionally misclassify their workers to avoid providing them with mandated employee benefits. In such cases, employers will be subject to steep fines, lawsuits, and reputational damage.
There are other perks you could add to your benefits package to make it more attractive to top talent such as:
These perks go beyond basic benefits and contribute to a positive work environment that can set your company apart in a competitive talent market.
Offering statutory benefits can significantly increase the cost of hiring employees. On average, legally required benefits like Social Security, Medicare, and workers' compensation account for around 10-15% of total employee costs. According to the Bureau of Labor Statistics (BLS), employee’s benefits cost between 20-40% of their salary.
Having a clear grasp on the costs associated with employee benefits is essential for accurate budgeting as an employer. For a detailed comparison of employee costs across different countries and U.S. states, check out Playroll’s free employee cost calculator.
A work visa in South Africa is a government-issued document that allows foreign nationals to legally live and work in South Africa for a specified period. This document is a tool that governments leverage to ensure that non-citizens are employed per immigration and labor protection laws.
A work visa is a type of nonimmigrant visa. This visa category stipulates that foreign individuals must return to their home country upon the expiration of their visa. Visa holders may apply for extensions or renewals to remain in the country.
Work permits and visas are often used interchangeably but are not synonymous and serve different purposes. Work permits are typically long-term and linked to a specific employer, whereas work visas may be short-term or tied to specific projects. Understanding these distinctions is crucial for employers to ensure compliance and avoid legal pitfalls.
If you’re sponsoring an employee to enter the country and work for you in South Africa, you will mainly be dealing with work visas. We will primarily be discussing work visas for the purposes of this article.
Any non-citizen intending to work in South Africa must obtain the appropriate work visa or permit. Employers should have thorough verification processes to ensure that any foreign national they hire has authorization to work in the country. Failure to do so will be considered non-compliance with immigration laws and can have severe ramifications, including fines and potential legal damage.
Playroll offers visa support services in South Africa. Our experts help simplify the process of building a global workforce, and ensure you stay compliant every step of the way in the process.
South Africa’s robust economy, manufacturing sector, and technological advancements have made the country a hub of employment opportunities. As a result, South African work visas and permits are in high demand.
South Africa offers several types of work visas and permits, each catering to different employment needs. Employers should be familiar with these options to effectively aid their employees’ application processes:
Employers should have an in-depth understanding of the eligibility criteria, duration, and specific conditions for each visa type to make optimal decisions for their workers and businesses.
Employees applying for a work permit or visa in South Africa must provide a range of documents that are outlined by the Department of Home Affairs on its visa webpage. This includes documentation the employer should supply. Here’s a summary of the key documentation required:
The general requirements for a General Work Visa include:
An application for a General Work Visa should be accompanied by:
Relevant requirements for employers include:
The general requirements for a Critical Skills Work Visa include:
Requirements for employers include:
The general requirements for a Intra-Company Transfer Work Visa include:
Noteworthy requirements for employers include:
Employers must support their employees throughout the visa application process to ensure the smooth and legal onboarding of foreign workers. This support includes providing the employee with detailed job descriptions, employment contracts, and letters of confirmation.
The employer also has certain responsibilities throughout the application process. These responsibilities include confirming the validity of the applicant’s documents, ensuring that the employee leaves the country on the expiration of their visa, providing proof of efforts to hire locally, and paying a cash deposit or guarantee for the foreign workers in the case of a corporate visa.
Check out our table above for the exact details on what would be required of you as an employer during the visa sponsorship process, depending on the specific work visa at stake.
The fees for obtaining a South African work permit or visa vary depending on the type of visa and the applicant's nationality. Employers should be aware of these costs and factor them into their budgeting for international hires. Additional fees may be associated with mailing and visa renewals, or extensions.
The schedule of fees below was taken from VFS Global, the official partner of the Department of Home Affairs (DHA) in South Africa in visa facilitation services. It should be treated as an estimate of application fees for 2024.
South African visa applications take different times to process depending on the country of the application and the embassy or commission where it is lodged. We have compiled a list of approximate wait times. However, we recommend that you consult with the relevant institution.
Familiarizing yourself with processing times is essential, particularly when operating on an employee onboarding timeline, as South Africa’s Department of Home Affairs is not immune to delays. Incomplete or incorrect information may also contribute to delays in your application.
South African work visas are valid for three to five years depending on the visa type. Most employment-based visas can be extended or renewed (other than an Intra-Company Work Visa) on the condition that visa holders apply for extensions 60 days before the expiry of their current visa. The applicants must meet all of their visa requirements again for the extension to be approved.
As such, employers and sponsors need to stay up to date with any changes in visa requirements and criteria to sufficiently support their employees.
Additionally, you must submit your application in person or at any VFS Global Offices in South Africa, as you cannot submit extensions outside of South Africa.
The South African government introduced a digital nomad visa on May 20, 2024. This non-immigration visa will effectively allow non-citizens who are freelancers or self-employed to live and work in the country for a year. This can be a great benefit to employers, as it opens up the door to attracting and retaining a wider pool of international talent.
The details of the official application process have not yet been made clear as the official government papers have yet to be signed. However, the South African government has stipulated that applicants must earn at least R 1 million (approximately $56 thousand) to qualify for this visa category.
Visa holders who reside in the country for more than six months will be expected to register as taxpayers in South Africa.
An employee’s immediate family members such as a spouse or dependents (usually young children) may accompany them to South Africa. Employers should familiarize themselves with the visa process for dependents of foreign workers. This process could include a separate visa application process.
Work sponsorship could mean tax implications for both the employer and the employee. Employers have obligations including deducting employees’ tax from their employee’s income even when it comes to foreign workers. Ensuring compliance with all these factors is critical to avoid legal complications.
Sponsoring foreign workers in South Africa can be a complicated and rigorous process. Simplify the process of obtaining work permits and visas for your foreign employees while ensuring compliance with South African laws with Playroll. Our visa sponsorship support platform offers comprehensive support, from the initial application to renewal, helping you manage your global workforce efficiently.
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