A Comprehensive Guide to Multi-Currency Payroll

The rise of technological advancements turned difficulties in long-distance transactions almost completely obsolete. Gone are the days when messages take months to get delivered. Communication, bills payments, and shopping can now be done with a few quick taps anywhere in the world. Nowadays, businesses also greatly benefit in such technological advances – particularly, in the payroll processes. Automations in payrolls paved the way for easy, accurate, and quick management of salaries, adjustments, pay policies, and more. It also helps in consolidating calculations of salaries for employees in remote locations with different currencies through the use of the multi-currency payroll system.

What is the Multi-Currency Payroll?

The multi-currency payroll is a system that aids your business in managing international payroll transactions in a single application. To make it simple – if you have employees stationed in different countries for a month, calculating their salaries will involve integration of that country’s policies and tax rules. To make the adjustments accordingly, the multi-currency payroll system can be used.

Should your company opt for a multi-currency payroll system?

This system will greatly benefit a company that deals with transactions overseas. Making adjustments for a single employee is one thing, but manually computing salaries that are compliant to a certain region’s policies for several workers can eat time and effort fast. 

What are the benefits in using the multi-currency payroll system?

1. Automated computations. Fast, computerized salary calculations can be achieved in an instant through the use of the multi-currency payroll system. With this system, you’ll be able to access and track real-time updates to the payroll. Exchange rates, tax laws, and country policies will be merged in a single system, resulting in easy and straightforward calculations.
2. Make adjustments easily. This system does not only deal with changes in currency but with customized additions such as accommodation allowances, bonuses, and commissions as well.
3. Real-time access. With this system, the company will be able to see changes in calculations due to constantly-updating exchange rates, updated policies, and modifications in tax computations instantly. This data could also prove useful in preparing company strategies regarding remote hiring and overseas partnerships.
4. Puts the company’s resources into better use. A significant amount of time and labor can be saved with the use of this system. The company can operate multiple payrolls with a few simple clicks. Delays due to human error will also significantly reduce through application of this system to your company’s payroll process.
5. Keep an organized record of previous transactions and important documents. Important documents involved in payroll computation such as employee requests, expense reports, and pay slips can be easily accessed and downloaded as needed.

Adapting an automated multi-currency system can make significant improvements in your business. Errors that could result in delays or even legal repercussions will be greatly reduced with the use of a system that constantly updates and consolidates important data.

Our team at Yomly can assist your business for your multi-currency payroll needs. Contact us to learn more about this system or even better, book a free demo on our website.