When you are considering whether an Offshore Payroll Service is required it is important to consider exactly what is needed.
In Payroll terms the phrase “Offshore Payroll” can have different meanings:
A UK payroll company carrying out the payroll of an overseas based company
Typically Offshore Payroll services for UK businesses with interests in other countries will cover processing all aspects of payroll for jurisdictions such as Jersey, Guernsey, Isle of Man, Ireland, Gibraltar, Bermuda, Cayman Islands, etc. Offshore Payroll run in the UK covers the processing in areas that have their own tax and national insurance rules.
The calculation of payroll for Expatriates
An expatriate is an employee working in a country other than their country of origin. An expatriate may also be referred to as a PCN or parent-country national.
Periods of assignment that span less than 3 to 4 years means you can work in a foreign country as an expatriate and be taxed as you would in your country of origin.
Long periods of assignment (perhaps 4 to 5 years or more) may run the risk of “de facto” employee status in the host country, so that tax laws of the host country apply.
This is a complex area and specialist advice should be sought by either employees in an expat situation or employers employing staff on that basis.
Using an offshore resource to carry out your payroll processing
A UK payroll may be outsourced for processing by an overseas company where the cost of labour is cheaper. Although on the face of it this may give rise to lower processing costs the remoteness of staff may give rise to service and support issues.
The Payplus payroll services are entirely UK based and staffed by a team fully experienced in UK payroll procedures and legislation. Our fully managed payroll service will deliver the solution you need for total payroll peace of mind.
Contact Robin Mead for further details – call 0800 018 0590 or email firstname.lastname@example.org.