PEO: The Solution to Business Payroll Compliance

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Hybrid workforces are on the rise, but there’s an answer to the woes of increasingly complex payroll requirements.

The hybrid workforce model has been hailed as the workforce of tomorrow for businesses everywhere. With this new work model, you can run your company with staff from anywhere in the world.

That being said, many businesses are ill-equipped to handle staff payroll issues from different countries with different hiring schemes. Furthermore, the ever-changing payroll regulations of a country could spell doom for businesses if poorly managed.

1. Payroll Affects Employee Morale

A study by the Workforce Institute indicated that 49% of people will begin the search for a new job after two errors in their payroll 1, and for good reason.

Your staff members depend on their salaries to survive. An inaccurate, late or missed payment isn’t just an administrative hassle for an employer; it’s a financial crisis for a struggling employee.

When it comes to data security, excel spreadsheets and emails are an extremely poor way to maintain your company’s payroll information. Payroll data involves personal information about employees, and a data breach could severely impact the morale of your staff.

The main cause of most data breaches are accidental emails to the wrong recipients. 2

2. Mistakes Cost Money

Payroll errors, misplaced paperwork, and other issues cost money in the form of time. Not only would you suffer from a decrease in productivity, but you may also incur penalties for non-compliance in the form of fines or imprisonment, depending on local laws and regulations.

3. Navigating the Minefield

Businesses need a combination of competent staff and reliable payroll systems to successfully maintain payroll compliance. With higher costs, difficulty of hiring and training an in-house HR team to handle payroll across various countries, many business owners are turning to PEOs to fulfil this critical need instead.

What is a PEO?

A PEO, or professional employer organisation solution, acts as a co-employer for employees who are stationed abroad. PEO vendors typically perform payroll tasks, but can also offer additional human resource services such as workforce management, legal compliance, talent sourcing, and management of employee benefits.

1. Save Time & Money

PEOs provide a myriad of valuable benefits for companies that outsource their payroll compliance to them, and the first on the list is cost savings. You’ll have access to a team of trained professionals from the get-go, at the price of a monthly subscription.

2. Better Workplaces Everywhere

The impact of compliance isn’t just a numbers game; with an in-depth understanding of the local laws and culture, your PEO partner can help advise you on best practices in workplace safety, training requirements, salary packages and other financial regulations which may be indirectly related to payroll. This results in a happier workforce, and a better business.

3. Strive for Success

In an uncertain period where many companies are closing up shop, you’ll need all the help you can get. PEO-assisted companies achieve faster growth and are 50% less likely to go out of business 3.

There’s a better way to manage your workforce and maintain payroll compliance. With AYP at your side, you can place your focus on the things that matter most: the success of your people and your organisation.

1. How to Choose the Right PEO for Your Business?

2. How a PEO Can Benefit Your Company

3. 3 Ways A PEO Helps Your Growing Business


  1. Just two payroll errors can cause 49% of employees to start job hunting. HRDive. June 2017.
  2. Data indicates human error prevailing cause of breaches, incidents. Iapp. June 2018.
  3. 4 Peo Stats That May Surprise You (And Help Your Company).

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