How to build a simple payroll payment process for teams paid in different currencies

If you are running a business with an international workforce, you’ll need to also handle their payroll. Having employees across the world means you’ll have to pay in multiple currencies. However, building a simple payroll payment process will allow you to overcome many of the challenges you’ll face.

Consider using a Wise Business accountas part of that process. Wise allows its users to pay employees in over 40 different currencies, **40+ **which means you’ll be able to get the correct compensation to your team, no matter where they are in the world.

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What is a payroll payment workflow?

If you’re managing employees then you will need to establish a payroll payment workflow. This is the process whereby employers create a repeatable system where their employees are paid on time and in the correct manner.

The payroll payment workflow includes data collection, approval, payment release, the tracking of payments and reconciliation. However, with international teams there are additional challenges including timing issues and FX fees that could confuse the payment workflow.

Payroll calculation vs payroll payment execution

Payroll calculation is the process of actually figuring out how much each employee is owed. The calculation must consider gross and net pay, including expenses, tax, pension contributions and National Insurance contributions among other factors.

Payroll payment execution, on the other hand, is the process of actually sending the money and ensuring employees receive it on time, in the correct manner.

Why multi-currency teams need a defined workflow

Multi-currency teams will be facing additional challenges, as there are other factors to consider. Paying your team in multiple currencies means you must consider exchange rates, FX fees, time zones and compliance with local governments regarding tax.¹

A defined workflow brings precision to this process, ensuring it can be repeated every month.

What a simple payroll workflow should include

A simple payroll workflow should have four stages. They are:

1. Pre-payroll - Calculating time worked, vacation time and the collection of key data.
2. Calculation - Assessing gross and net pay, contributions, taxes, pensions and other deductibles.
3. Payment - The successful payment of employees across multiple currencies and countries.
4. Post-payroll - Record maintenance and HMRC reporting to stay in line with UK policy.

Use Wise to create a simpler workflow structure. With automated payment systems it makes it easier to manage global teams from a remote setting.

While those four stages may create a basic overview for the payroll process, it’s important to break them down further into 7 individual steps for a more detailed analysis.

Step 1: Map who gets paid, where and in which currency

Before making any payments, you’ll need to know who is getting paid, where they are and how they are being paid. It may seem obvious, but this is one of the most crucial steps.

List employees, contractors and payment types

You’ll find it useful to have a consistent list of your employees and your contractors, whether they are freelance or permanent. As part of this process, you must define the type of employees you are paying.

Next to each of these names, include key information such as contact details, their roles and most importantly, their payment types including nationality and currency.

Confirm salary currency and payment frequency

Once this list is compiled you’ll need to confirm the currency with your employee and agree on how often they should be paid. Some employees may wish to be paid in an alternative currency, while some contracts may stipulate that payments do not fall into the typical monthly structure.

Always keep their contract details in mind when assessing payment frequency and type.

Check country-specific bank detail requirements

After confirming these factors, you’ll need to check if there are any country-specific bank detail requirements. This will include legally mandated information required to pay an individual employee and the local regulation around tax and the processing of payment.

Use Wise to help pay your employees across 70+ countries 140+ meaning you can use the platform to streamline your payroll workflow.

Step 2: Collect and validate payroll data before cut-off

Data is absolutely vital in the payroll process. That’s why collecting the data and validating it before a cut-off date will ensure that all the necessary information is to-hand when beginning the act of paying your employees.

Set a clear payroll cut-off date

Dates are part of the structure of any good payroll workflow. They should be immovable so that you and your employees know when you can make changes and when it is too late to continue altering data. These dates should align with HMRC’s own expectations in regards to filing consistent reports.

Validate pay changes and one-off adjustments

Pay can change throughout the year based on one-off adjustments or long-term shifts. This data needs to be addressed before continuing and should include any reimbursements or deductions.

Whether it’s a salary raise, overtime, a one-off bonus or a change in schedule, these all have to be reflected in the payroll. New employees need to be added to the books and departing employees must be removed.

Confirm employee and contractor payment details

To make payment, the employee and contractor details must be solidified. That includes location, bank information and any changes that may impact payment.

Use Wise if you want to easily keep track of those payouts even if you’re managing payroll for a larger team.

Step 3: Calculate payroll and confirm net payment amounts

Before payments are created you must calculate the payroll. That includes the net and gross payments. While gross pay refers to the overall pay before any deductions, net pay will be the actual amount the employee receives.

Confirm gross-to-net calculations

To ensure the payroll is correct before proceeding, you’ll need to confirm the gross-to-net calculations. Under their gross pay, you need to consider bonuses, commissions, maternity payments, cash prizes for competitions and any other variables.²

In your deductions you will need to calculate income tax, National Insurance, any student loan repayments, pensions, child maintenance and any additional deductions that will translate into net pay.³

Ensure you seek professional help when making these calculations.

Separate salary, tax and benefit obligations

When making those deduction calculations you may find it easier to separate salary, tax and benefit obligations to make it entirely clear to both yourself and your employees. Those who are being paid deserve a concise record of those deductions.

Produce a payment-ready payroll report

After this process is complete, create a payment-ready payroll report that includes all of this data and those calculations, ready to convert into payroll execution. Operationally, this should be a simple handoff.

If you are hoping to scale your business globally, you’ll need automated payroll payments. Use Wise to convert your payroll reports into efficient, automatic payments.

Step 4: Plan currency conversion and payroll funding

Next up is the pre-planning process for making those payments. You need specific information before continuing. That includes knowledge of the available funds and how much payroll is going to cost you and your business.

Identify currencies needed for the pay run

Keeping an ongoing list of the employee currencies you’ll need to pay in will make life a lot easier. Identifying these currencies will give you the initial data you need to calculate later costs.

Check available balances before approval

To be able to pay your employees, you’ll need access to specific funds. Your company will likely have an available balance ready for employee payments. Make sure enough of your budget has been allocated to address any payment changes.

If you have automated payment systems in place, you’ll need to know that the platforms have the funds needed to make those efficient payments. For example, make sure you have enough money in your Wise account before setting up automated payroll. You may wish to use different accounts for different currencies to avoid FX costs.

Review FX rates, fees and settlement timing

There are always fees attached to making payments internationally. Whether it’s the exchange rate or the FX fees, your payroll plan has to be mindful of those costs.

The settlement timing also plays into international payment. If you’re sending money abroad, there may be delays. Ensure that your payments are scheduled so that employees receive them before the deadline, even if their accounts are international.

Step 5: Set payroll approval controls

The payroll workflow has to be complete in its assessment. Keeping approval controls in place help to mitigate errors and avoid mistakes being made.

Define who creates payments

The approval process is only as strong as those involved. You need a dedicated person in charge of creating payments. They are the active participant in the marker-checker workflow.

Define who approves payments

You also need an additional person who approves those payments. They are an independent checker who is able to confirm whether the payment creator has followed the necessary steps.

Use approval thresholds for larger pay runs

Approval thresholds are those pre-established benchmarks that are easily measurable and bring in an additional sense of control. If larger pay runs move past those thresholds, then the framework should be in place for additional approval checks so that bigger mistakes are avoided.

Keep a record of changes and approvals

Being able to trace the payroll workflow from beginning to end allows it to be a more transparent process. Keep a record of those changes and approvals both for your own books and for HMRC. Those audit trails will also show who is responsible for the final sign-off.

Step 6: Release payments and track delivery

Once those all-important calculations and checks have been managed, it is time to move into payment execution where employees will receive their financial compensation.

Create payments from the approved payroll file

You need to define how payments are being made, based on that pre-approved payroll file. That means you need to negotiate whether payments are in batch or individual, based on the employee's needs. You will also need to schedule payments accordingly.

You can use a Wise account to both set up automatic batch payments and individual manual payouts. Tailor your plan to suit your structure and ensure employees are paid on time.

Use clear payment references

A payment reference allows both the employee and employer to easily track payment. If there is an issue with a particular payout in the future, that reference will allow you to trace it immediately. It is another part of creating a transparent payroll workflow.

Track payment status by person and country

When you are paying a larger group of employees, you need to know who has been paid and where they are. With use of the payment reference, keep records and track the payment status of both people and countries.

There may be delays based on location and there may be issues with individual payments. Understanding who has been paid and when will help you keep track of the overall success of your payroll workflow.

Communicate delays quickly if they happen

If you are aware that there will be delays with the payments, either due to personal error or factors outside your control, you need to communicate this clearly with your employees. That way, they will know when to expect compensation.

It is useful to make employees aware of potential problems even if they do not materialise, so that you remain ahead of any errors.

Step 7: Reconcile payroll payments after payday

Once payroll has been concluded and payments have been sent, there is still more work to be done. After payday you’ll need to reconcile and prepare for the next round in the payroll schedule.

Match payroll totals to payment totals

Firstly, you need to check that the payments sent match the expected payroll. If you have paid more than you should have, then there has been an error. Equally, if not all the funds have been taken then you’ll need to address where there has been a problem in the payment structure.

Record fees and FX costs

You may find that you are running at an additional loss based on the fees and FX costs associated with payroll. While using Wise will mean you face low, transparent fees*, it is vital that you still record those payments so that you understand where your losses are coming from.

If your payroll workflow runs at too high a cost, then consider making changes to the platform you’re using or the workflow itself.

Resolve returned or failed payments

Some payments might have failed and some may be returned. It is your duty to rectify this as soon as possible, especially if employees are still waiting on their payments. Investigate why there was a problem before proceeding with the solution.

Feed learnings into the next payroll cycle

Managing payroll is a constant learning process. Whatever you learn on one cycle, you can apply to the next. Make note of any key findings and create solutions that can and will be applied next time around.

Payroll workflow mistakes to avoid

Handling your payroll workflow is not an easy process. There are some basic errors that can be made. However, if you are aware of the risks and mistakes that could interrupt your workflow, then you’ll know how to best avoid them. This guide outlines some of those key danger areas.

Relying on one spreadsheet without checks

This is a particular pain point. One spreadsheet could become too crowded and complex. Equally, placing everything into one spreadsheet could lead to the risk of loss.

Spread out your planning and reporting so that your calculations are across multiple platforms. Have someone consistently check your workings to ensure mistakes are not being carried over.

Approving payroll too close to payday

It is best to always leave some room between payroll approval and payday itself. That’s because if there are any final errors in the system, you may be delaying payments when they are vitally needed. Streamline the process and create some buffer space.

Missing local bank detail formats

While your records and data might be stellar, there could be unknown errors. Whether local bank detail formats are missing or simply entered incorrectly, this is often the most simple way that a payment is delayed. Double check with employees before proceeding to avoid late payments.

Not reconciling FX and payment fees

If you fail to record the FX and payment fees you’ll not only open yourself up to keep losing money as you are not addressing those losses, but you will also find your records inconsistent. You must know how much it is costing you to pay your employees.

Make the most of Wise’s mid-market exchange rates and low, transparent* fees if you want to feel in control of your payroll management.

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How Wise Business helps simplify payroll payment workflows

After reviewing the payroll payment workflow process, you’ll likely be looking for other solutions-based software to integrate into your own workflow. That’s where Wise comes in.

Batch payments for multi-currency pay runs

As previously discussed, Wise can help set up batch payments for multi-currency pay runs. That automation can help reduce errors and delays so that you’re comfortable in the knowledge that your payroll is being professionally handled regardless of the country your employee lives in.

Transparent FX and payment fees

Wise’s transparent FX and payment fees mean that you are always in control of the cost of paying your employees. You are emboldened with flexibility so that you are getting the best deal before sending funds abroad.

Team permissions and approval controls

Wise accounts also come with team permissions and firm approval controls. If there are multiple people checking and working on the payroll workflow, then these controls will allow everyone to have access to those needed funds and international accounts.

Payment tracking for finance teams

Keeping your own records isn’t enough. You’ll also need a payment system that tracks everything, so that your finance teams can keep hold of that data in an additional platform. Wise ensures that you are always given the information you need to make improvements on your payroll workflow every cycle.

Wise Business offers a free Essential plan for basic spending and transferring. If you need to receive money, set up direct debits, or generate invoices, you'll pay a one-time £50 setup fee to unlock the Advanced features.
With Wise Business, you can:

• 🌍 Send money to 70+ countries at the mid-market exchange rate with low, transparent fees and no hidden exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn variable returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Rates vary by country and currency. Rates are variable. Visit Wise Interest to find out more)
• 🔗 Create payment links and QR codes to get paid easily (Card payment acceptance for new Wise Business customers is currently unavailable. Payment methods subject to eligibility and availability.)
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for your domestic and global needs.

Be Smart, Get Wise.

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FAQs

If you still have further questions about creating a payroll process, consult these FAQs for support.

Can a payroll workflow be built in a spreadsheet?

Yes, a standard spreadsheet programme will be able to help you create a payroll workflow. This is best for smaller businesses. However, use more than one spreadsheet and consult other software for more complex calculations and record-tracking.

How often should a payroll workflow be reviewed?

You should review your payroll workflow quarterly at the very least, to ensure it is still working efficiently. At the end of each year, review the software and programmes you are using.

Do small teams need a payroll workflow?

Yes, even if you only have a small team, a payroll workflow is crucial to ensuring everything gets paid properly and on time.

Can payroll payments be scheduled in advance?

Yes, payroll payments can be scheduled in advance when using software with pre-planning features. Wise offers its own automation options.

What is maker-checker approval in payroll?

This describes the transparency process of payroll, where a maker oversees the payroll workflow while an independent, separate checker ensures everything meets the correct standards.

What should be included in a payroll payment file?

Critical details such as the employee’s information including reference numbers, the payment data such as salary, bank identification and any deductions or adjustments should all be included. Consult HMRC for additional information.

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Sources Used:

1. HMRC - Running payroll
2. HMRC - Running payroll: Employee’s payments
3. HMRC - Running payroll: Deductions

Sources last checked: 23-Jul-26