Guide on international payroll solutions for Australian businesses

If you’re an Australian business with team members based overseas, you’ll need to manage an international payroll. There’s more to it than simply sending payments, though. There are differences in currencies and tax laws to consider, as well as volatile transfer fees and exchange rates to account for.

This blog will help you find a service to keep on top of these factors and handle all your international payroll obligations. We’ll define what a global payroll is, why you need it, and what are some of the ideal solutions out in the market!

Table of contents
What is international payroll management? How to choose the right international payroll service 4 international payroll providers in Australia Wise Business - For global payroll FAQs

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What is international payroll management?

International payroll management is the process of paying employees or contractors in multiple countries as part of a global workforce. It covers everything from calculating and paying wages to handling taxes and complying with local laws when sending money across borders in different currencies.

Is there a need for international payroll solutions?

Three-quarters of Australian businesses plan to hire overseas workers⁶. As skill shortages persist, tapping into a global talent pool offers a practical way to fill gaps and stay competitive.

However, there are challenges involved when paying people abroad.

Currency fluctuations can turn a predictable budget into a moving target based on guesswork. Traditional banks often charge big fees for international transactions and offer poor exchange rates. This one-two combo is a real drag on profits. It’s estimated that US SMBs lose $43bn a year on just these fees¹.

That’s just the tip of the iceberg, though. There are then other complications, including:

• Different tax systems - Local payroll taxes and reporting requirements, and regulations vary across countries.
• Admin burden - Managing multiple banking relationships in different countries, tracking exchange rates, and generating reports across various platforms is a major time sink and prone to errors.
• Delayed payments - International transfers can take longer to process. It’s common for funds to take several days to reach recipients.

Benefits of using international payroll solutions?

International payroll software simplifies these processes by bringing them together and giving you the tools to:

• Pay employees in their local currency
• Stay compliant with local employment and tax laws
• Reduce admin with automated calculations
• Cut costs with competitive exchange rates
• Keep clear, audit-ready records
• Avoid delays and payment errors
• Easier reconciliation of international business transactions

For global teams, this turns payroll from a monthly headache into a simple, streamlined operation that supports business growth.

👆Starting a small business in Australia? Here's an article on payroll systems for small businesses and what to look for

How to choose the right international payroll service

Running payroll across multiple borders is complex. There’s currency exchange and legal compliance to account for, and managing timelines and communication across different time zones.

Choosing the right service is key to avoiding delays and errors, plus unnecessary fees. Here are a few factors to weigh up when selecting international payroll services.

• Cost - International payments incur a 2-5% fee per transaction through traditional SWIFT networks. Look for providers that offer competitive exchange rates and accept local currency payments. Also, double-check there aren’t any hidden currency conversion charges.
• EOR services - Do you need an Employer of Record service, in addition to payment processing? EORs can take care of legal matters like local employment laws and contracts if you’re hiring in countries where you don’t have an established presence.
• Tax reporting - Make sure the platform can handle all your local tax filings and deductions, play any reporting obligations in each country where you have overseas workers.
• Speed and reliability - Payment delays are frustrating and can affect your reputation. Prioritize providers that process transactions quickly, or are at least honest and transparent about the time it will take.
• Customer support - International payroll issues don’t always follow Australian business hours. Look for services that offer round-the-clock support with expertise in international banking and sorting compliance problems.
• Integration - Ideally, your payroll solution will integrate with your tech ‘stack’ and accounting software. Manual data entry isn’t recommended — it increases the risk of errors and non-compliance. If you’re using QuickBooks or Xero, etc., make sure you can get everything to sync.
• Scalability - Got exciting growth plans? If you’re expanding into new countries or scaling your team quickly, check that the service doesn’t have account limits tied to specific tiers or any other setup delays.

It’s important to note that a single hub might not do everything. Or that using two services that complement each other could be better. For example, you can use one platform to manage employee onboarding and local compliance, and another for handling multi-currency payments and foreign currency conversions.

4 international payroll providers in Australia

Australian businesses have quite a few options for managing their international payroll. Here are some of the providers that is commonly available for businesses in Australia.

Remote

Remote is a global employment platform that allows businesses to legally hire, onboard, and pay employees or contractors in 100+ countries. It combines payroll management with HR services and benefits administration.²

Key features:

• Employer of Record (EOR) services
• Global payroll and contractor payments
• Built-in compliance with local tax and labour laws

Deel

Deel is another platform with a focus on EOR, promising to help clients enter new markets without the “hassle” of setting up local entities. There’s also built-in tax and compliance coverage for 130+ countries to help with paying employees.³

Key features:

• EOR and contractor management
• Global payroll with local tax support
• Automated invoices and payment processing

Payoneer

Unlike Remote and Deel, Payoneer doesn’t offer a full suite of EOR services. It instead focuses on supporting freelancers, businesses, and service providers with simple, affordable international payouts.⁴

Key features:

• Multi-currency account with 70+ currencies and 190+ countries supported
• Payment receiving accounts in NZD, USD, EUR, and more
• Low foreign currency exchange fees and clear pricing

Rippling

Rippling is billed as an “all-in-one HR software.” Its main product is HCM, Human Capital Management, designed to get companies from A to B when recruiting and onboarding workers and then paying them.⁵

Key features:

• Unified system for domestic and international payroll
• Employee onboarding, managing benefits (insurance, leave etc.), and device management
• Automate compliance with local tax laws and labour regulations

As you can see, many of these providers offer very different services, with some geared more towards HR than banking. Before deciding, it’s important to take stock of what you need in an international payroll service.

Make global payroll less expensive and simple with Wise Business

Global payroll doesn’t have to be as complex with tons of admin, layers of reports for filing, and high costs managing business transactions. This is where alternate solutions like Wise Business come into play. It helps cut through the complexities to facilitate cost-effective money transfer when dealing with multiple currencies.

With a Wise Business multi-currency account, businesses can pay their global team in their local currencies using the batch-transfers features. What’s more is that these transactions occur at the real, mid-market exchange rates with no markups or hidden fees that weigh down your payroll.

Wise Business helps streamline overseas business payments without foreign transaction fees, saving up to 3x compared to other providers.

• Free to register — Send money to 140+ currencies with no hidden exchange rate markups
• Make up to 1,000 transfers at once with the Wise batch payments feature
• Fast, low-cost payouts to customers, freelancers, employees, investors, and suppliers globally
• Automate invoice payments, recurring transfers, and international payroll
• Fast and fully secure payments through Wise, even for large amounts

Tired of hidden fees and complex processes when making overseas payments?

Start sending with a Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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International payroll FAQs

What are the tax laws when it comes to international payroll in Australia?

Australian tax obligations depend on your employment structure. If you employ international workers as Australian employees, you’ll need to withhold PAYG tax and superannuation contributions. Other overseas workers are usually treated as contractors or foreign employees, where local tax and labour laws apply. Always consult a tax adviser if you’re unsure about tax laws for international payroll.

Is there a limit to the number of employees I can pay with Wise Business?

No, there isn’t a limit. Wise Business batch payments allow you to pay up to 1,000 people at once. It’s ideal for paying multiple freelancers, contractors, and remote staff as part of your international payroll obligations.

Does global payroll take time to process?

Yes, especially with traditional banks. Delays can happen due to currency conversion, compliance checks, and even bank holidays in Australia and other countries. With Wise Business, most international transfers arrive in a few hours. Certain currencies can take longer, but estimated arrival times are always shown before you send payments.

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Sources:

1. Wise - State of US SMBs Report direct cost of hidden fees
2. Remote - Home Page
3. Deel - Home Page
4. Payoneer - Home Page
5. Rippling - Home Page
6. plan to hire overseas workers