how to reduce payroll expenses

Reducing Payroll Expenses: 6 Pros of Using One Payroll System

Looking to save money on international payroll administration? Here’s how to reduce your payroll expenses with Deel’s centralized platform.

Shannon Hodgen
Written by Shannon Hodgen
June 21, 2023
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Key takeaways

  1. Companies using six or more payroll providers are more likely to cite difficulties with payroll management and global reporting.
  2. Organizations can cut costs related to payroll by consolidating their processes and data with one global payroll provider, such as Deel.
  3. Deel’s transparent pricing structure eliminates duplicated fees and hidden expenses, allowing businesses to manage and forecast their payroll expenses accurately.

Managing international payroll through multiple platforms can result in hidden costs, inefficiencies, and an increased risk of errors, with companies using six or more providers over twice as likely to struggle with payroll management and global reporting.

Consolidating your international payroll into one global platform isn’t just about having fewer systems, but having a superior one. 

Using Deel, businesses can streamline their international payroll operations, reduce payroll expenses, and improve overall efficiency. With cost-effective currency conversions, consistent payment processes, error prevention, and enhanced data visibility, Deel’s global payroll services offer a comprehensive solution for managing international payroll.

Here’s a closer look at the expenses associated with using decentralized payroll solutions, and how Deel can help.

Labor costs to manage multiple platforms

Setting up and managing multiple payment platforms requires significant time and resources, taking away from core business activities and productivity. 

For example, Mobile game company Yodo1 needed an innovative method for hiring, onboarding, and paying people in over 30 countries. Before using Deel, every single contract had to be typed out in a word processor, exported to PDF, and processed through a third-party e-signature platform. Then all of that data was manually factored into their regular payroll processes.

“Now, when we sign in to Deel, we can quickly and easily create or sign documents and manage all of our international contracts and payments in just one place. Since launching with Deel, we’ve easily saved more than 100 work hours by streamlining repetitive or redundant tasks for our HR and Finance teams,” says Flo Alcasas, Yodo1’s Head of People and Remote.

See also: How Long Does It Take for Payroll to Process?

The solution: Deel’s automated processes 

Deel’s global payroll services offer a centralized platform designed explicitly for international payroll, which features time-saving automation to eliminate manual work. 

how to reduce payroll expenses

By automating payroll, you’ll reduce duplicate work for your payroll admin team, reduce payroll processing costs, and ensure accurate calculations of employee wages, commissions, overtime pay, deductions, and more. 

We are a 5% HR staff company for 130 people right now. That’s extremely lean for any company. Deel played a huge role in this efficiency and productivity we have. All of the validations that the recruiting team used to do, thanks to Deel, are now done automatically.

Oscar Matroberti, HR Manager and Recruiter, Devbase

You can also use Deel’s 20+ integrations to streamline your payroll and HR processes or build your own workflow with the Workflow Builder in Deel HR, Deel’s global HRIS solution.

See also: 9 HR Processes to Automate Today (And How to Do It With Deel)

Currency conversions

Using multiple platforms for international payments often leads to increased currency conversion costs. These costs can accumulate, impacting overall payroll expenses and financial planning. It becomes crucial to find a solution that minimizes these expenses.

The solution: Deel’s integrated currency conversions

Global payroll providers have the functionality to simplify multi-currency payroll, so international workers get paid the correct amount in their local currency instead of relying on several in-country payroll partners. 

Deel’s global payroll services provide integrated currency conversion options, helping companies reduce currency conversion fees. Businesses can simplify payroll calculations, improve financial planning, and achieve cost savings by using a single payment platform with robust conversion capabilities.

See also: About Exchange Rates and Fees

how to reduce payroll expenses

Payroll errors

Using multiple payment platforms increases the risk of errors and payment discrepancies, as there is no standardized quality control and no single point of contact for support. 

On average, one in five payrolls contains errors that cost the business $291 per mistake. These errors can result in delayed payments, incorrect amounts, and dissatisfied contractors or employees, leading to employee turnover that costs companies an average of $41,000 annually. For 16% of companies, employee turnover costs $100,000 annually.


Solution: Deel’s error prevention and payment accuracy

Deel helps companies pay their teams correctly and on time, every time, through automated global payroll services and the support of payroll experts and legal teams worldwide. With Deel, you receive one-on-one support from a dedicated customer success manager for each country. 

how to reduce payroll expensesBy using a payroll platform with a single view of your payroll data, automation that eliminates human error, and compliance measures that ensure the correct deductions and calculations are performed, businesses can ensure accurate payments, maintain positive relationships with their workers, and support employee retention.

Reduced reporting visibility

With multiple payment platforms, obtaining a clear view of international payroll finances and generating comprehensive reports is nearly impossible. Teams can’t accurately analyze their spending, workforce trends, or expense projections, and reconciling data from various platforms is a time-consuming and error-prone task.

The solution: Deel’s customizable reporting features

Deel’s global payroll services offer a centralized platform with comprehensive financial data and reporting tools. The platform gives businesses a holistic view of their international payroll, simplifying reconciliation processes and facilitating accurate reporting. 

With Deel, you can enjoy standardized global payroll reporting to compare operating costs, bonuses, taxes, and more across all entities. Our customizable dashboard lets you see a unified view of your payroll expenses in your preferred currency and analyze spending on social security, pensions, and more.

how to reduce payroll expenses

Non-compliance fines and misclassification penalties

Using multiple payroll platforms increases the risk of non-compliance and misclassification due to inconsistent regulations, lack of centralized oversight, difficulty in tracking and reporting, limited integration and communication, and an increased administrative burden. 

Engaging legal teams to resolve disputes, address compliance issues, or defend against lawsuits can drain financial resources and divert them from other critical business areas. 


Misclassifying employees as independent contractors or freelancers is one of the most common cases of non-compliance. Worker classification laws vary by region—for example, in India, there’s a higher chance of misclassification if a contractor works longer than 240 days. In Korea, the law includes ten factors to determine worker classification that range from contractor’s duties to basic salary.

The financial burden of non-compliance and misclassification fines can substantially impact a company’s bottom line. For example, in 2023, a national auto parts distributor in the US was ordered to pay $5.6 million (USD) in back wages and liquidated damages to 1,398 misclassified drivers.

See also: Employee Misclassification Penalties: Examples and Protections

Solution: Deel’s comprehensive compliance solutions

Consolidating payroll processes onto a single platform, such as Deel, provides a centralized and streamlined approach to ensure compliance with local labor laws and tax regulations.


With a deep understanding of local labor laws and tax regulations worldwide, Deel helps companies stay compliant and avoid costly fines. Deel’s global payroll services provide the necessary tools, resources, and legal expertise to address compliance challenges proactively by ensuring proper worker classification and adherence to local regulations.

  • 200+ legal partners around the world
  • Localized contracts for independent contractors and employees
  • A holistic view of all direct employees, independent contractors, and EOR employees in one dashboard
  • Data security compliance with international requirements
  • Quarterly contract reviews
  • Taxes, permits, and compliance documents are automatically collected
  • Centralized document storage
  • We handle payroll taxes, social contributions, benefits, payroll, and all things HR for you


Why Turning trusts Deel with their payments and compliance

Before using Deel, Turing handled all compliance manually, and it involved a ton of back-and-forth via email with new teams to collect necessary compliance documents. In search of a solution, they ran a pilot test with three platforms, including Deel.

“After being in this industry for more than 24 years, I understand that every country has its own laws. Some of Deel’s competitors have a standard template that is pretty much used across all countries.

When we came to understand the importance that Deel places on individual country laws and making sure that contracts are structured in the right way, Deel really stood out. 

And even though some of Deel’s competitors have payments, it wasn’t with the same ease at which we could do it with Deel.” — Sudarshan Sivaraman, Head of Customer Success and Sales, Turing

Duplicated expenses and hidden fees

Using multiple payroll providers can present several financial challenges, including paying duplicated fees for redundant or overlapping features. When each payroll provider charges separate fees for their services, businesses incur unnecessary expenses for similar functionalities across different platforms.

These duplicated costs can quickly strain a company’s payroll budget. Tracking and managing these expenses effectively becomes challenging, leading to increased payroll costs without tangible benefits. Managing multiple contracts, payment schedules, and pricing structures can create additional administrative complexity and consume valuable time and resources. 

The solution: Deel’s simple, transparent fees

Deel offers a simple, transparent pricing structure that helps companies save on payroll expenses. With Deel, businesses benefit from a consolidated platform that provides all the necessary payroll features and services under one roof. This eliminates the need to pay for redundant or overlapping features from multiple providers.

Deel’s transparent pricing model ensures that companies only pay for the specific services they require without any hidden or unnecessary fees. The pricing structure is designed to be clear and straightforward, allowing businesses to forecast and manage their payroll expenses accurately.

Review Deel’s pricing


See our per-month starting prices for EOR services, hiring and paying contractors, Global Payroll, Deel HR, or immigration.

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Streamline your payroll costs and processes with Deel

Take the first step towards simplifying your international payroll by exploring Deel’s global payroll services, and discover the power of a consolidated platform that combines convenience, efficiency, and cost savings. 

how to reduce payroll expenses

Outsource your global hiring and payroll with Deel’s employer of record (EOR) model, or use our Global Payroll model to manage payroll for your owned entities. With Deel, you can run multi-country payroll around the world while we handle everything from onboarding new employees to payroll, government declarations, taxes, benefits, payslips, and more.

Learn more about Deel’s Global Payroll system or schedule a 30-minute demo with an expert to get your questions answered.

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