Payroll is one of the most important aspects of any business and can be an incredibly complex function for a single location – but what if your business has multiple locations across the globe? How can you be sure you’re adhering to each and every requirement for tax, social security, pensions, benefits, and country-specific employment legislation?

Central HR and finance teams find managing multinational payroll challenging – but it’s essential to ensure the company is in good legal standing and compliant with regulatory requirements and the employees motivated.

The easiest way to ensure you international payroll is operating seamlessly is to outsource to a specialist payroll provider.

What is payroll outsourcing?

Payroll outsourcing means partnering with expert third-parties to take care of payroll processing for you.

One of your in-house team will prepare the data, including any changes and specifics, like new starters and leavers, holidays, maternity/paternity leave, and promotions or switching to part-time.

This data is then securely transferred to your specialist payroll provider, who will take care of all the manual tasks: overtime, tax, pensions, social security, sick pay, and any other official additions/deductions – including employee benefits or allowances (like car allowance or a yearly rail ticket, for example). Once this is complete, you get final approval before payslips are produced and your team is paid.

Benefits of payroll outsourcing

Outsourcing your payroll to a specialist payroll partner means less stress for your in-house team. Your team won’t have to keep up with all the tax and legislative changes that can affect payroll, and you won’t have to increase your headcount to handle specific payroll requirements for each country in which you operate.

A good payroll provider will also be able to provide knowledge of varying labour laws and requirements in the locations you operate as well as offer experience in providing payroll services to businesses like you to ensure you’re compliant with local legislation and taxation.

Then there’s payroll software. Outsourcing to a specialist payroll provider with leading technology available to you means that you don’t have to invest in an expensive payroll platform. Access to the right payroll technology solution provides great operational savings, and it can also free up your employees for more strategic functions.

Using an outsourced payroll company also goes a long way to reducing your risk. They have the expertise and technology you need so that you can easily grow your business, both in terms of headcount and additional locations.

And finally, outsourcing your payroll function can actually be cheaper than doing it yourself. When you consider the time, resource and cost payroll management can take – the regularity and repetition, how many team members are absorbed in the task each pay period, and the governmental reporting requirements involved – it makes sense to send payroll out and clear your team for value-added work.

Types of payroll outsourcing

There are different levels of payroll processing available, depending on your requirements.


This service will see your provider simply producing payslips and making required transfers.

You’ll do all the data analysis and collation, allocation and administration in house and send final figures to your provider. They’ll produce payslips and prepare payments according to your data.


This is where your provider will take over the payroll function with very little data entry required by your in-house team. All you need to provide is changes: new starters/leavers, promotions, timesheet or overtime information, etc.

Your provider will do all the calculations and allocations, including all relevant tax and legislative deductions, and you’ll get final approval before payslips are run and transfers made.


A comprehensive payroll service takes the entire payroll function off your shoulders.

A comprehensive payroll service will give you end-to-end payroll solutions, a best-in-class technology system in place and the whole international payroll process will be managed seamlessly so you can interact with our teams and monitor the status of the payroll process across all locations.

Not only that, but a comprehensive service will include calculation and production of fiscal year reporting for you and your team, along with required reporting for regulators and government bodies – including tax authorities.

Why use Auxadi outsourced payroll services?

Here’s why Auxadi is your perfect outsourced payroll specialist:

  • We’ve been processing international payroll for over 40 years
  • We can provide end-to-end payroll services in over 50 jurisdictions across Europe, Latin America and the USA
  • We’ve got experienced local staff on the ground. They’re extremely knowledgeable of the regimes of each country and they keep up to date with changes
  • We’ve got a leading technology platform in place to ensure the full payroll process is managed with ease

We can support you with payroll changes (e.g. benefits, commission, bonus, accrual calculations etc.), customised and tailored payroll reports and management of new hires and terminations.

In partnership with Microsoft, we’ve created our own payroll software that’s intuitive, accessible in the cloud and provides incredible security. Hosted in Azure and fully GDPR compliant, our payroll technology gives you single point of access, approval permissions, data management and reporting functions over multiple locations. Reviews and signoffs are automated and fast, and you can access all your international payroll functions through a single interface.

What’s more, access and visibility are real-time – so you can get the data you need, when you need it.

To find out exactly how Auxadi outsourced payroll can help make your life easier, get in touch with our payroll team today.

Contact our team today to find out exactly how we can help you

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2023. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.