In order to run your business to the fullest extent, you’ll need highly skilled and very reliable employees to support your operations. While having a local base of operations can definitely keep you grounded and connected to the local market, being able to expand your support through remote workers is also a great option.
Although having remote workers can be a great way to source much-needed help, adding them into your roster can be a headache when it comes to payroll. The amount of research and preparation necessary to pay your employees can be time-consuming, which is why getting a small business accountant is the common procedure.
To help you navigate your accounting efforts better, here are three tips to help streamline your payroll management for remote employees.
Ascertain the roles
One of the first and foremost tasks to accomplish before taking in remote workers is to assess their specific role and worker type in your company. Just because they’re remote workers don’t automatically mean that they will be classified as your employees—you’ll have consultants, contractors, and freelancers within the mix, all of which can be confusing come payroll dates.
Before hiring a prospective remote worker, check their local legislation as to what classifications they’ll fall under. Through this, you can make better decisions that can help you later on when you’re handling the accounting side of your business.
Secure the local rules
As stated above, it’s incredibly important to check the local laws and regulations regarding remote workers, especially when it comes to tax laws. Your duty as an employer is to ensure that your transactions with your employees are always in accordance with the law, especially when it comes to handling money.
The trouble with this, however, is when your remote workers are from different countries. When withholding income tax from your employees, you should still follow their own country’s laws—so track these down from the onset. Some things to look into that may differ from your own local rulings include superannuation schemes, health care plans, minimum wage laws, overtime laws, and other benefits.
Understand the numbers
Despite the difficulty, knowing how your payroll management works and its proper implementation is vital to your operations. As such, it’s crucial to do your due research on the matter or even take some basic accounting classes to refurbish your knowledge on managing payroll.
If this presents to be a bit of a problem, then you can consider getting help from a specialist. There are numerous third-party accounting firms online that can help you manage your remote workers—their specialty can come in handy with the confusing local rulings of each country.
Should you find this a threat to your own personal security, then you can consider hiring an in-house accountant to handle the nitty-gritty details. This way, your information will stay secure, allowing you to still be the person on-top calling the shots regarding your finances.
The Bottom Line
Handling your business accounting can be complicated, especially if you’re starting to hire remote workers. In order to help you with payroll management, some prior knowledge and preparation can come in handy to avoid grief later on. Better yet, you can avoid legal complications by hiring a licensed accountant to do the work for you.
Are you looking for accountancy services online to help you manage your remote workers? At the Ecommerce Accountant, we don’t just manage your finances, but we also streamline the process to help you minimise tax while maximising your profit. Get in touch with us today and outsource your accounting needs with one of the best in the business.