Global Payroll

What is Global Payroll?

Global payroll is the process of managing salary payments, taxes, and compliance for employees and contractors across multiple countries. It allows companies to pay international teams accurately, legally, and often without setting up local entities - using automated systems and specialized providers.

How Global Payroll Works

Global payroll systems consolidate multi-country payroll into a single streamlined process. They typically manage:

• Currency conversions and international payouts

• Tax documentation, such as W‑8BEN forms

• Local labor law compliance (see Cross-Border Compliance)

• Contractor onboarding and classification, often via an Employer of Record (EOR)

• Alternative payout methods, like USD Wallets or Crypto Payroll, to bypass banking delays

Why Global Payroll Matters

For startups, NGOs, and scaling teams, global payroll helps:

• Hire international talent legally - without creating local entities

• Pay workers in local currency, USD, or crypto

• Eliminate errors, FX fees, and onboarding friction

Without a proper global payroll system, teams risk:

• Payment delays and administrative overhead

• Legal issues due to misclassification

• Hidden FX markups that shrink budgets

Example Use Case

A U.S. startup hiring developers in Brazil and Nigeria uses a global payroll platform to:

• Onboard contractors through WhatsApp in under 15 minutes

• Pay in USD wallets or stablecoins, bypassing banking delays

• Automatically ensure compliance with local tax and labor laws

Related Glossary Terms

• Employer of Record (EOR)

• USD Wallet

• Crypto Payroll

• Cross-Border Compliance

• W‑8BEN Form

Explore More

Learn how SigmaRemote simplifies global payroll →
See how we compare to Deel and Papaya Global →
Explore our LATAM Payroll Guide →