Understanding UK payroll services for remote employees

Need to pay remote employees in the UK? Set up compliant, hassle-free payroll with expert support – contact our team today to get started.

Remote and hybrid working is the way of the future. We’ve known this since the 2020 pandemic unexpectedly plunged the working world into a new mode of operation. Today, remote jobs comprise over 15% of roles in the US and 14% in the UK, where an additional 26% are hybrid.

Across the board, employees are responding positively to the change. In fact, 74% of workers reporting feeling happier when working remotely. And it’s not just your staff who benefit. Research from Harvard and Stanford shows that the average business can save up to $11,000 per year by switching to a hybrid model.

Introducing remote working in your business cuts costs and increases employee satisfaction, as well as broadening your reach, allowing you to hire, onboard, and support talent overseas. With the rise of solutions such as Employer of Record and global payroll services, it’s now easier than ever to support your workers overseas, while remaining compliant with all local laws and regulations.

What is global payroll?

Global payroll is the process of managing employee compensation across multiple countries through a centralised system. It includes calculating salaries, withholding and paying taxes, managing benefits, and ensuring compliance with local labour and tax laws. As businesses expand internationally and embrace distributed workforces, global payroll has become essential for maintaining operational consistency and legal compliance across borders.

Unlike domestic payroll, global payroll must account for different currencies, tax regimes, employee classifications, banking requirements, and employment laws. It also involves coordinating with various stakeholders such as in-country tax authorities, social security systems, and benefits providers.

To manage these complexities, companies often rely on global payroll providers or platforms that offer integrated technology, local expertise, and in-country support. These providers streamline processes and reduce risk by ensuring every employee, whether full-time, part-time, or an independent contractor, is paid accurately and in compliance with local regulations.

Global payroll is especially relevant for companies that hire remote employees, employ staff overseas, or are exploring how to expand their business internationally. Whether supported by internal teams or outsourced partners, a well-executed global payroll strategy is critical for employee satisfaction, operational efficiency, and long-term international growth.

Global payroll: the benefits

Compliance

Implementing a global payroll system offers a wide range of benefits for businesses expanding across borders. One of the most immediate advantages is compliance.

Navigating local employment laws, tax obligations, and reporting requirements can be daunting. Global payroll providers ensure all processes align with jurisdiction-specific rules, reducing the risk of fines, penalties, or reputational damage.

Efficiency

Another key benefit is efficiency. Rather than managing multiple local payroll vendors or manual spreadsheets, businesses can consolidate their operations through a single provider or platform. This not only streamlines administration but also increases accuracy, especially when handling different currencies, benefits, and pay schedules.

Transparency

Global payroll also enhances data visibility. Centralised dashboards and standardised reporting allow HR and finance teams to monitor workforce costs across regions, enabling smarter budgeting and workforce planning. This is particularly useful when leveraging tools like salary benchmarking or using cost calculators to evaluate the true cost of an employee in markets like the UK.

Scalability

Finally, global payroll supports scalability. Businesses can onboard talent in new countries quickly without the need to set up a legal entity, especially when integrated with Employer of Record (EOR) services. This agility makes global expansion more accessible and sustainable for growing companies.

How does global payroll support remote employees?

Centralised data

Global payroll is an essential enabler for managing and compensating remote employees across multiple countries. As companies embrace remote-first work models, they often face the challenge of how to pay international employees compliantly and efficiently. Global payroll services resolve this by centralising compensation processes, ensuring that remote staff are paid accurately, on time, and in local currencies, regardless of their location.

Local compliance

Remote employees are often spread across jurisdictions with unique tax laws, employment classifications, and benefits requirements. A global payroll solution manages these complexities while maintaining compliance with each country’s regulations. This is particularly important for avoiding permanent establishment risks and ensuring accurate social contributions, income tax withholdings, and statutory benefits.

Seamless administration

Global payroll also integrates with other remote work systems, including HR platforms, time tracking tools, and performance management software. This holistic approach enables seamless administration for distributed teams. Additionally, providers often support remote employee onboarding, visa and immigration services, and benefits management, making them a full-service solution.

For businesses employing staff overseas or paying foreign independent contractors, global payroll creates a professional and compliant infrastructure that supports employee satisfaction and legal peace of mind. It is a crucial part of any company’s strategy for managing a global workforce and enabling sustainable remote operations.

Mauve Group’s Global Payroll solution

Mauve Group offers a comprehensive global payroll solution designed to support businesses hiring and managing talent in over 150 countries. With nearly three decades of experience in global HR, payroll for international employees, and employing staff overseas, Mauve provides a streamlined, fully compliant service that handles payroll processing, tax withholdings, benefits administration, and regulatory reporting on behalf of its clients.

Mauve’s payroll solution is especially valuable for companies engaging in global expansion or exploring how to pay international employees without establishing a local entity. It integrates seamlessly with our Employer of Record (EOR) services, allowing businesses to hire quickly, pay accurately, and remain compliant with local laws. This is ideal for managing remote work employees and international contractors who may fall under different classifications and regulatory obligations.

With a dedicated team of experts and localised in-country knowledge, Mauve ensures that clients stay informed and compliant in every region. From advising on the true cost of an employee calculator UK to supporting visa and immigration services, Mauve’s end-to-end solution simplifies global workforce management.

Trusted by multinationals, start-ups, educational institutions and NGOs alike, Mauve Group’s global payroll services help businesses scale across borders with confidence, accuracy, and long-term strategic value. Contact us today to get started.