Dollars and Sense: Managing Payroll for Remote Employees in Multiple Time Zones

Although employers want to return to the office, it’s clear that remote work is here to stay. A 2022 Buffer poll showed that 97% of remote employees want to continue to work from home. To keep up with the work-at-home demand, companies must streamline payroll management.

How to Manage Payroll for a Remote or Hybrid Team

If you want to manage payroll across multiple time zones, you need to establish a system that caters to everyone and ensures prompt payment. You should also utilize payroll software.

Create a Procedure That Covers you Legally

Payroll can be a complex endeavor, especially if your team is distributed in different locations across the globe. To cover yourself legally, you need to understand the payroll and employment laws that govern your freelancers and employees in their countries and follow them to a “T.” 

One thing that often trips up employers is employee classification. Freelancers and contractors are often hired remotely, but more and more employees are starting to work out of their homes. If you misclassify your remote staff or miscalculate wages, you’ll pay a hefty fine, so be careful!

Consolidate Employee Pay Dates 

Paying your staff on the same day and time, regardless of department or location, can maximize payroll efficiency. Not only does this reduce the number of pay cycles, but it also eliminates possible errors and duplication. Consolidating your pay dates is the best way to limit mistakes.

Manage Employees’ Leave and Attendance

Accurately collecting employee leave, attendance and overtime help you maintain reliable payroll documents. If you’re using Buddy Punch’s time clock software, you can track employee schedules, limiting payroll mishaps and ensuring everyone is paid what they’re owed.


By tracking your employees via software, you receive up-to-the-minute attendance data thanks to its clock-in and clock-out functions. More sophisticated software can provide insight into how team members spend their time. With this data, you can better understand your budget limits.

Set Up Alerts for Payroll Deadlines

If you don’t process payroll on time, you could damage your reputation with the government and your employees. Be sure to set payroll deadlines for taxes and paydays based on the laws in each individual country. You can set alerts in your payroll software if you need a reminder.

Implement an International Payroll Software

Speaking of payroll software, its adoption is absolutely necessary if you want to manage payroll in multiple time zones. An online payroll management system will give your team the ability to access data all over the world, which allows them to make changes and collaborate instantly.

The best part about a payroll system is automation. You can cut down on repetitive tasks (and save yourself a lot of time) if you set your software up to distribute payslips and tax worksheets automatically. In the end, payroll software will drastically improve your daily payroll operations.

Cross-Train International Payroll Staff

Whether you have a large or small team, you shouldn’t rely on one person to handle all of your payroll tasks. While setting up a communication channel can fast-track your workflow, be sure to cross-train your payroll staff to empower them to undertake more than one task at a time.

Consider Outsourcing Payroll 

Switching over to a remote workplace is a long and complicated process, especially if you can’t navigate multiple languages or regulations. If you need to hire talent from a different time zone but you don’t have the knowledge to handle this task yourself, consider outsourcing your payroll.

An outsourcing company is a third-party service provider that takes care of the international payroll process for you, thus limiting your compliance risks. By eliminating the stresses of payroll, you can focus on other core business needs, such as expansion and engagement.



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