Article
6 min read
How to Reduce Payroll Costs as a Global Team
Global payroll
Author
Shannon Ongaro
Published
June 21, 2023
Last Update
January 30, 2025
Key takeaways
- Companies using six or more payroll providers are more likely to cite difficulties with payroll management and global reporting.
- Organizations can cut costs related to payroll by consolidating their processes and data with one global payroll provider, such as Deel.
- Deel’s transparent pricing structure eliminates duplicated fees and hidden expenses, allowing businesses to manage and forecast their payroll expenses accurately.
Managing payroll for a global team is no easy task. Between handling multiple platforms, navigating different regulations, and reconciling scattered data, the costs—both in time and money—can quickly spiral out of control.
Many companies unknowingly incur duplicate fees, hidden expenses, and inefficiencies that hinder smooth operations.
At Deel, we’ve worked with organizations spanning 150+ countries, helping them conquer these exact challenges through centralized, transparent, and compliant payroll solutions.
This blog will guide you on how to reduce payroll costs and simplify payment operations—all without sacrificing accuracy or compliance.
By adopting Deel, businesses have reduced administrative work, saved thousands in fees, and gained valuable visibility into their payroll expenses and reporting. Ready to discover how to transform your payroll strategy into a cost-efficient powerhouse? Here's how Deel can make it happen.
Minimize your tech stack
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.
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 110+ integrations to streamline your payroll and HR processes or build your own workflow with our Workflow Builder.
See also: 9 HR Processes to Automate Today (And How to Do It With Deel)
Optimize 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
Improve payroll accuracy
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.
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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.
By 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.
Watch: Unlocking payroll potential: How to optimize your global operations
Payroll professionals are busier than ever. With numerous responsibilities and rapidly evolving technology, selecting the right provider with top-tier features for your global workforce is essential. But what does the ideal provider look like? How can your payroll partner simplify your tasks and boost efficiency?
In this on-demand webinar, Deel's experts explore these critical questions and share how to leverage the latest advancements in modern payroll, including:
- The challenges prompting global payroll experts to seek new solutions
- Evaluating your current payroll processes
- Essential features to look for in a global payroll system
- How to compare different vendors and choose the best one for your needs
Centralize employee data for clear reporting
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.
Boost compliance to reduce legal risks
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.
Global Hiring Toolkit
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
Eliminate redundant services
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, or immigration.
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.
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 Global Payroll or schedule a 30-minute demo with an expert to get your questions answered.
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FAQs
What should you do if payroll is too high?
If your payroll costs are too high, start by evaluating your team structure. Consider hiring part-time or temporary workers instead of full-time employees to save money when demand is low. Offering remote work or flexible hours can also help reduce office space costs.
Use payroll software to automate payments, which can minimize errors and save time. Regularly compare different payroll service providers to ensure you're getting the best rates. Additionally, simplifying your work processes can reduce the need for overtime and may allow you to hire fewer employees.
How do you cut down on payroll taxes?
To lower your payroll taxes, offer pre-tax benefits like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). Provide achievement awards and extra benefits that aren't subject to payroll taxes. Set up a clear plan for reimbursing employee expenses to avoid extra taxes.
Matching a portion of employee contributions to retirement plans can also be tax-deductible for your business. Additionally, contributing more to employee health insurance premiums can reduce your tax bill, as these payments are often tax-deductible.
Are payroll costs tax deductible?
Yes, many payroll costs are tax deductible. You can deduct the salaries and wages you pay to employees. Employer contributions to programs like CPP/QPP, EI, and provincial parental insurance are also deductible.
Payments for employee insurance plans, such as those for sickness, accidents, disability, or income, can be deducted as well. If you pay your child or spouse to work in your business and meet certain conditions, those salaries are deductible too. Keeping detailed records of these expenses is important to ensure you receive all available deductions.
What’s the best way to do payroll for a small business?
For small businesses with only a few employees, handling payroll yourself might save money initially. However, as your business grows, using a professional payroll service can save time and reduce mistakes.
Small business payroll software is another great option because it automates calculations, manages tax withholdings, and ensures compliance with tax laws. Regularly update employee information and their tax details to keep payroll accurate.
Stay on top of payroll tax deadlines to avoid penalties. Choosing a payroll service that handles tax filing and compliance can make managing payroll much easier as your business expands.
About the author
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
