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Hiring International Talent Without an Entity: What’s Possible in 2025
Hiring International Talent Without an Entity: What’s Possible in 2025 1244 688 PayReel Updates

Your next big project is in Mexico City. A great candidate for a creative lead just happens to live in Paris. Maybe your production team needs a freelancer in Sydney for three months. The opportunities are out there, but what’s standing in the way of hiring someone outside your home country?

For many companies, the answer comes down to a simple (and outdated) assumption: If we’re not “set up” in that country, we can’t hire there.

That’s no longer true.

“First, What Does It Mean to ‘Set Up’ in Another Country?”

Traditionally, if you wanted to hire workers in a different country, you’d need to create a local business entity –sometimes referred to as a foreign entity or subsidiary. It’s the legal structure that allows your company to run payroll, hire employees, and pay taxes under that country’s laws.

But here’s the problem: setting up an entity is expensive, slow, and resource-heavy. It often involves:

  • Registering with local authorities
  • Hiring legal and tax advisors
  • Setting up payroll systems
  • Managing ongoing compliance and filings

It’s not a quick fix. It’s a long-term investment. And if you’re just trying to hire one contractor or support a short-term project abroad, that level of commitment can be a dealbreaker. But there’s a better way…

A Faster, Simpler Option: Hire Through an Employer of Record (EOR)

So what’s the alternative to setting up shop in another country? An Employer of Record (EOR) is a partner that hires international workers on your behalf. The EOR becomes the legal employer in that country, handling local employment contracts, tax filings, and benefits, while you manage the day-to-day work.

In other words, you don’t need to register your company or build infrastructure abroad. The EOR already has it in place and ready to go.

This approach allows companies to move quickly and stay compliant. In practice, that means:

  • No need to create a local entity
  • Faster onboarding (often in a matter of days)
  • Built-in compliance with local labor laws
  • Simple payroll and payments in local currency

“If I don’t have an entity, what’s the point of using an EOR?”

It’s a fair question: If you’re not setting up a local entity, why bother with an EOR at all?

The reality is, not having a formal presence in a country doesn’t mean you’re off the hook for employment rules. You still have to meet local requirements—like classifying workers correctly, paying taxes, and using compliant contracts. An EOR handles all of that for you.

Think of it as a way to act locally without having to build locally.

Here’s when an EOR really earns its keep:

  • Hiring one or two people abroad without opening an office
  • Supporting international shoots, events, or activations
  • Testing new markets before committing
  • Retaining relocated talent
  • Working with contractors and freelancers in a compliant way

You get the benefit of global hiring, without the hassle of becoming a global HR and legal expert overnight.

You Don’t Need a Global Footprint to Get Started

Global hiring used to mean months of paperwork, steep legal fees, and committing to long-term infrastructure in countries you were just beginning to explore. That’s no longer the case.

Today, companies can bring on international talent for short-term projects or a strategic new roles without setting up entities, navigating foreign tax codes, or hiring a team of local advisors. With the right partner, you can stay compliant, move quickly, and focus on the work –not the bureaucracy.

PayReel helps teams in creative, production, and event-driven industries hire across borders with confidence, handling the behind-the-scenes compliance, onboarding, and payroll logistics so your projects don’t lose momentum.

If you’re thinking about expanding abroad, you don’t need to have it all figured out. You just need a way to get started –safely, efficiently, and in a way that works for your timeline.

Start small. Stay nimble. And as your global needs grow, PayReel can help you scale without the growing pains.

An EoR helping staffing agencies improve productivity
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How Can Staffing Agencies Increase Productivity?
How Can Staffing Agencies Increase Productivity? 1280 572 PayReel Updates

A staffing agency’s main priority is to match the perfect candidate with the right company, whether for specialized skills, long-term commitments, or temporary positions. However, this provides a range of administrative burdens, from payroll contracts to legislation compliance, which can be time-consuming and detrimental to productivity.

What makes a staffing agency successful?

  • Effectively matching talent with the ideal role and company: A successful staffing agency excels at pairing candidates with roles that align with their skills, experience, and career goals, ensuring long-term satisfaction for both employees and employers.
  • Providing outstanding client service at every step: A top-performing staffing agency prioritizes clear communication, responsiveness, and personalized support to build lasting client relationships.
  • Remaining operationally and legislatively compliant: A successful agency stays current with labor laws, tax regulations, and worker classifications to avoid legal risks and penalties. By maintaining strict compliance, it protects its business and clients while ensuring smooth, disruption-free operations.

What challenges do staffing agencies face?

  • Internal HR admin: Managing administrative tasks such as payroll, contracts, background checks, and tax deposits in-house can divert time and energy that could be spent winning new clients.
  • Changing legislation: It can be difficult to keep up with legislation, especially during presidential transitions. Standards such as wage and hour laws can be revised under a new administration, making compliance even more complicated and costly for businesses.
  • Operational complexities: Accurate worker classification is critical to avoid legal penalties and maintain operational efficiency. Misclassification can lead to substantial fines and reputational damage.

Introducing Employer of Record Services

What is an Employer of Record?

An Employer of Record (EOR) is a third-party organization that manages the legal and regulatory responsibilities of employing workers for a business. The EOR handles all personnel functions for tax, insurance, and compliance purposes.

What does an EOR provide?

The role of an EOR can vary to meet a business’ requirements. Their responsibilities can include but are not limited to:

  • Payroll processing and funding
  • Tax deposits and filing
  • Contracts
  • Benefits
  • Payroll relating to employment termination
  • Background checks/drug screenings
  • Full insurance coverage
  • I-9 / E-Verify forms
  • Unemployment insurance
  • Data security

How can an Employer of Record help staffing agencies

An Employer of Record frees staffing firms from the overwhelm of copious administrative tasks, so they can focus their energy on what is important: client relationships.

How EORs help with easing resource

Enables Focus on Growth: EORs take on administrative burdens, allowing staffing agencies to focus on sourcing top talent, strengthening client relationships, and expanding business without distractions.

Streamlines Onboarding: EORs provide a smooth onboarding process that reduces delays, improves worker integration, and boosts employee retention. A positive onboarding experience is crucial for temporary workers, as it helps them feel welcomed and prepared. A negative experience can double the chance of temporary workers seeking opportunities elsewhere, so this can make a big difference.

Simplifies Scalability: As staffing agencies grow or expand into new markets, managing a larger, more diverse workforce can become increasingly complex. Partnering with an EOR makes it easier to scale operations, enter new markets, or specialize in niche industries by handling the complexities of compliance and administration.

How EORs help with Payroll compliance

Removes the Burden: Payroll compliance is complicated and high-stakes, as it must comply with federal, state, and local requirements. EORs keep up with the ever-shifting legal hiring landscape, so the staffing agency doesn’t have to.

Protects From Fines: An EOR ensures compliance with labor laws, tax regulations, and worker classifications, reducing the risk of misclassification and legal penalties. This gives staffing firms peace of mind and protects them from costly fines.

Guarantees Accurate Payments: One of the most important aspects of maintaining a strong relationship with workers is ensuring they are paid accurately and on time. EORs handle payroll processing with precision, ensuring that temporary workers receive their payments without errors or delays. Timely and accurate payments build trust with workers, helping staffing agencies retain clients and maintain a strong reputation within the industry.

Relax with PayReel

PayReel is the trusted EOR for staffing agencies, offering expert compliance management and seamless administrative support. With our in-house specialists handling the details, you can focus on what matters most – achieving success.

Ready to increase productivity? Chat with an expert today.

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Understanding the 2024 Overtime Rule Changes Plus 6 Steps to Compliance
Understanding the 2024 Overtime Rule Changes Plus 6 Steps to Compliance 2560 1667 PayReel

The latest overtime rule, finalized by the Department of Labor (DOL) with one noteworthy exception introduces significant changes to the Fair Labor Standards Act (FLSA) regarding overtime pay exemptions for executive, administrative, and professional employees. 

Key Changes to Overtime Rules

Salary Threshold Increase: As of last week (July 1st), the salary threshold for overtime exemption has increased from $684 per week ($35,568 per year) to $844 per week ($43,888 per year). Beginning at the top of next year, (January 1, 2025), the threshold will further increase to $1,128 per week ($58,656 per year).

Highly Compensated Employees: Also effective last week, the total annual compensation requirement for highly compensated employees has increased from $107,432 to $132,964. Beginning at the top of next year (January 1, 2025), this threshold will increase to $151,164.

Automatic Updates: Starting July 1, 2027, the salary thresholds will be updated every three years based on current wage data.

Implications for Businesses

  1. Employee Reclassification: Many employees who were previously exempt may now be eligible for overtime pay.
  2. Increased Payroll Costs: Businesses will need to either raise salaries to maintain exemptions or start paying overtime to previously exempt employees.
  3. Administrative Adjustments: Employers will need to regularly review and adjust compensation structures to comply with the automatic updates every three years.

Steps for Compliance

  1. Review Employee Classifications: Evaluate which employees will be affected by the new thresholds and determine if reclassification is necessary.
  2. Adjust Payroll Systems: Ensure that payroll systems can handle the changes, including tracking hours for employees who will now be eligible for overtime.
  3. Communicate Changes: Inform affected employees about the changes in their classification and how it will impact their pay.
  4. Training: Provide training to managers and HR personnel on the new regulations and how to implement them.
  5. Engage Partners: Engage the experts to ensure full compliance with both federal and state laws.

The Bottom Line

By following these steps, businesses can smoothly transition to the new overtime rules and avoid potential penalties for non-compliance. Schedule a free consultation to learn how we can streamline your payrolling compliance processes–ensuring peace of mind and operational efficiency.

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Ghostbusters: Preventing Payroll Fraud
Ghostbusters: Preventing Payroll Fraud 2560 1707 PayReel

Most big companies have multiple checks in place to prevent payroll fraud, but even the big dogs are not immune from nefarious practices seeking to compromise information or steal money. If you’d rather not have a jealous employee swindle your fruitcake factory or a payroll administrator use other people’s personally identifiable information for their own benefit, then your company better have them in place, too. 

Understanding Payroll Fraud

Payroll fraud is alarmingly prevalent. Still, because it usually starts out with small amounts of money or practices that are camouflage behind standard operating procedures, it often goes unnoticed for a long time. Unlike someone stealing a car whose owner will be looking for it shortly, payroll fraud can be more insidious. What’s worse is that some perpetrators do not even recognize their actions as criminal. They may feel entitled to the funds they’re misappropriating, whether by “adjusting” their payroll records to reflect extra vacation time or clocking in without actually working. These examples aren’t hypothetical—they’ve been committed by police officers and firefighters alike.

What is Payroll Fraud? What Are the Risks?

Payroll fraud involves the misappropriation of funds through various deceitful means. This could include paying “ghost” employees or vendors. These entities appear legitimate but exist solely to siphon off money. These ghost entities might be former employees who’ve quit, been terminated, or passed away but still receive paychecks, or fictitious vendors purportedly providing services.

Another common form of payroll fraud occurs when employees falsify their work hours, either by clocking in without working or having someone else clock in on their behalf. This type of fraud costs businesses billions annually, with small businesses being particularly susceptible. These schemes can go undetected for years, causing significant financial damage before they are uncovered.

How to Prevent and Detect Payroll Fraud

Given the varying setups of companies, payroll fraud can sometimes be alarmingly easy to execute. While smaller payroll departments are at higher risk, larger corporations and even nonprofits are not immune. Prevention is the best defense, as it not only deters potential fraudsters but also facilitates early detection. As is usually the case, the resources invested in prevention are minimal compared to the potential costs of fraud.

Conduct Thorough Hiring Practices: Verify candidates’ identities using tools like the Social Security Administration website, E-Verify, or the IRS website. Perform background checks before hiring and periodically afterward to ensure ongoing integrity. Apply consistent scrutiny to all employees, regardless of their position.

Separate Duties: Especially in smaller businesses where one individual might handle multiple roles, it’s crucial to separate responsibilities. Ensure that no single person is responsible for making entries, writing checks, and auditing books. Implementing a system of checks and balances can significantly reduce the risk of fraud.

Conduct Regular Audits: Perform both internal and external audits to detect fraudulent activities. Regular audits, ideally on a quarterly basis, can uncover discrepancies early, preventing extensive damage.

Responding to Suspected Payroll Fraud

Even with preventive measures in place, anomalies can still occur. If you notice any red flags, it’s crucial to investigate further.

Look for Unusual Behavior and Ghost Employees: Watch for signs of ghost employees, such as payroll discrepancies or unusual behavior. Employees who never take time off might be hiding something.

Provide Reporting Channels: Establish hotlines or other confidential reporting methods for employees to report suspicious activities. Often, those working closely with payroll can identify issues before management does.

Follow the Money: Investigate financial anomalies such as multiple employees using the same bank account, payments to unknown vendors, or unusual expenses. If anything appears suspicious, conduct a thorough investigation, either internally or by hiring external experts, ensuring discretion to avoid alerting potential fraudsters.

Payroll Fraud by Businesses

It’s not just employees who can commit payroll fraud. Businesses themselves can be guilty. Companies that misclassify employees as independent contractors to evade payroll taxes and other employment costs are committing payroll fraud. If you suspect your worker classification practices might be problematic, consider a free consultation to discuss.

The Bottom Line

Now is the perfect time to identify potential vulnerabilities in your payroll system and establish a robust action plan. Although payroll fraud can be incredibly frustrating and costly, it is also highly preventable. If managing payroll in-house feels overwhelming, consider outsourcing to experts who can minimize the associated risks. Schedule a free consultation to learn how we can streamline your independent contractor payrolling compliance processes–ensuring peace of mind and operational efficiency.

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US Staffing Agencies: Have You Tapped Into This Potential Goldmine?
US Staffing Agencies: Have You Tapped Into This Potential Goldmine? 2560 1707 PayReel

For US staffing agencies, the Canadian market represents a compelling expansion opportunity. For those looking to expand operations beyond the US, Canada is a natural next step because of the shared cultural norms, lower language barriers, and familiar industries. This post explores why US-based staffing agencies might want to consider venturing into the Canadian market and offers a step-by-step guide on how to successfully make the move.

Why Expand into Canada

Among other reasons, staffing agencies might be drawn in by the growth opportunities and the relatively low barriers to entry for expanding into Canada. On the growth front, Canada boasts a large staffing market–just outside the top 10 worldwide. This makes Canada an appealing market for US staffing agencies looking to expand. Of course, expanding into any new country is a challenge. There is an inevitable adjustment when it comes to regional laws, different cultures, etc. That said, the similarities between the US and Canada significantly lower the entry barriers for US businesses. The predominance of English-speaking professionals and similar business etiquette fosters a smoother transition for US staffing agencies looking to establish operations in Canada.

How to Expand into the Canadian Market: A Step-by-Step Guide

Step 1: Market Research and Due Diligence

Conduct comprehensive market research to understand the Canadian labor market, including demand in specific industries, competition, and regulatory requirements. Familiarize yourself with Canadian employment laws, immigration policies, and any provincial regulations that may impact staffing operations.

Step 2: Establish a Legal Entity or Partner With an Existing EOR

If your research indicates an expansion suits your business goals, the next step is to decide on the type of legal entity or partnership that best suits your expansion strategy. You can then register your business with the appropriate Canadian authorities and obtain necessary licenses and permits. Plan for the extra expenses and time this process takes. Alternatively, you can partner with an  Employer of Record (EOR) that has taken these steps already and has systems in place to take on this role on your behalf. Partnering with an EOR is the quickest path as it offers a turnkey solution to be able to start operations virtually overnight instead of having to take on the entire process yourself.

Step 3: Develop a Strategy

You may need to tailor your staffing solutions to meet the unique needs and preferences of the Canadian market and establish connections with local businesses, industry associations, and trade organizations to gain insights and enhance your network.

Step 4: Set Up Operations

Choose a strategic location for your Canadian office (if necessary), considering factors like client proximity, talent availability, and operational costs. Implement operational infrastructure, including IT systems, payroll, and HR policies, that comply with Canadian standards or engage a partner (such as an  EOR) that handles many of the administrative details on your behalf and can offer a turnkey solution for accounting, payroll, legal infrastructure, and many HR functions.

Step 5: Talent Acquisition and Staffing

Develop a recruitment strategy that leverages both local and international talent pools and ensure your staffing practices align with Canadian employment standards and diversity and inclusion principles.

Step 6: Marketing and Branding

Adapt your marketing strategy to resonate with the Canadian audience and leverage digital marketing and social media to build your brand presence and engage with potential clients and candidates.

Step 7: Continuous Learning and Adaptation

Stay informed about changes in Canadian labor laws, economic trends, and industry developments in every region you wish to operate in. Continuously seek feedback from clients and candidates to improve your services and adapt to the evolving market needs.

The Bottom Line

Expanding into the Canadian market offers US staffing agencies a valuable opportunity to grow their business and tap into a vibrant and diverse talent pool. By understanding the local market dynamics, adhering to legal requirements, and developing a localized approach to staffing, US agencies can successfully navigate the complexities of international expansion. If you’re looking to expand, book a free consultation to discuss solutions.

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Maximize Temp Worker Success: The KEY Strategy for Recruiters & Staffing Agencies
Maximize Temp Worker Success: The KEY Strategy for Recruiters & Staffing Agencies 2560 1707 PayReel

Engaging temporary workers is a nuanced process under the best of circumstances. Juggling state-by-state and federal compliance with the regular burden of onboarding temp workers is one of the many reasons agencies traditionally focused on direct hires stay out of temp staffing. When temporary or contract workers are brought on for last-minute projects, those challenges are tenfold due to the time constraints, the amount of up-front work required to bring those workers on, and the fact that requirements vary from state to state. This post explores how engaging support from an Employer of Record service (EOR) can help overcome these challenges and get workers onboarded and on the job quickly.

Understanding the Challenges

1. Completing Onboarding for Last-Minute Projects
One of the significant challenges staffing agencies face is the need to onboard temporary workers for projects that come up at the last minute. Without a previously-established system to handle these situations, the crunch time can lead to oversights and mistakes.

2. The Amount of Up-Front, Administrative Work Required
Engaging independent contractors involves a substantial amount of administrative work even before they start their assignments. This can include paperwork for employment, background checks, and more. For staffing agencies, it’s crucial to get this right, especially when dealing with large numbers of temp workers. The administrative burden can be overwhelming, diverting resources from other critical areas of operation and potentially leading to delays or errors in the onboarding process.

3. Varying Requirements from State to State
The United States’ decentralized approach to employment legislation means that onboarding and independent contractor payrolling compliance requirements can vary significantly from one state to another. This presents a complex challenge for staffing agencies, especially those operating across multiple states. Agencies must navigate a maze of differing state laws regarding wages, overtime, breaks, termination, and more. This not only complicates the onboarding process but also increases the risk of non-compliance, which can lead to legal complications and financial penalties. Staying updated with each state’s requirements demands constant vigilance and adaptability, adding another layer of complexity to the onboarding of temporary workers.

4. Barrier to Entry to Temp Staffing
Even though temp staffing can deliver more advantageous profit margins, the barrier to entry can be large for a company that doesn’t already have the systems in place to address the challenges.

Engaging an Employer of Record

An EOR can play a significant role in overcoming the challenges of engaging temp workers. An EOR is a third-party organization that takes on the formal responsibilities of employment, such as payroll, taxes, and compliance with local labor laws. Here’s how an EOR overcomes the challenges associated with engaging temp workers:

1. Handling Compliance and Administrative Details
By handling the complexities of employment legislation, an EOR ensures that temp workers are onboarded in compliance with local laws, removing this burden from the company. This is especially helpful because requirements vary state to state.

2. Access to a Larger Talent Pool
For companies looking to hire temp workers from different locations, an EOR can facilitate the smooth onboarding of these workers in compliance with local laws (in PayReel’s case, that includes the U.S. and Canada!), widening the talent pool.

3. Streamlined Processes
EORs offer streamlined onboarding processes and best practices. This can improve the efficiency and effectiveness of bringing temp workers onboard.
Instantly Opens up a New Revenue Stream: An EOR is a partner that fills the void and breaks down the barriers to entry by enabling a more cost effective strategy for agencies looking to start or grow their temp staffing programs. For example, as an EOR with these systems established, PayReel enables agencies to add a turnkey temp staffing program / revenue stream overnight without any additional investment on the agency’s part. For those already doing temp staffing, it’s a more cost effective solution that also addresses the compliance concerns.

The Bottom Line

Onboarding temp workers has unique challenges. Using an employer of record service (like PayReel) can enhance this process by addressing these challenges, including compliance concerns, access to a larger talent pool, efficient onboarding practices, and reducing the barriers to entry. A thoughtful approach to engaging temp workers can significantly contribute to their success and, by extension, the achievement of company goals.

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Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll)
Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll) 2560 1707 PayReel

If you’re planning to expand your business, one of your top priorities should be making sure you’re in position to classify and pay employees and independent contractors properly. This is especially important if you’re looking to hire people in any state without any red tape. Today, we’ll talk about what it takes to run payroll and when it’s helpful to engage a partner.

Doing Payroll Right

Since payroll is always a complex, high-stakes business, it’s worth investing anything required on the front end to make sure you do it right. Whether you train an in-house team or engage a partner, they need to be in position to classify correctly, stay on top of laws as they change, identify and respond to the different tax requirements, and have a system in place that allows the process to be simple, accurate, and fast. This helps you avoid future fines and legal battles.

Doing it right means doing the following:

  1. Learning local employment laws. This includes identifying regulations regarding working hours, holidays, sick pay, insurance, and more and having a (preferably automated) system in place to follow those rules.
  2. Onboarding workers. This includes collecting information such as name and date of birth as well as tax forms, background checks, benefit status, and work eligibility.
  3. Storing and securing data. Since you’re dealing people’s personally identifiable information (PII), you MUST have a way to secure that highly-sensitive data. The fines for mishandling data are serious, so you should be equally serious.
  4. Authorizing payments and ensuring your employees get paid accurately.  This includes identifying the appropriate deductions/taxes, keeping accurate records, paying on time in every location, sending out notifications, reporting as required to government institutions, etc.
  5. Having a system in place to identify and adjust to changes. You don’t always have time to wait weeks to adjust to new laws. Things evolve rapidly, so your system needs to be ready to evolve just as rapidly.
  6. Staying compliant. Laws are different from place to place and do change frequently, so your payroll management software solution should have systems in place to ensure  compliance wherever you operate.

Would Outsourcing Payroll Benefit Your Business?

Outsourcing payroll is especially valuable in certain situations. If a company needs to hire employees in multiple states, is growing rapidly, and/or needs to hire temporary workers frequently, engaging an Employer of Record (EOR) could be a game changer. An EOR mitigates compliance risks, increases payroll efficiency, and eases the administrative burdens of managing a workforce.

The Bottom Line

Payroll is one of the most complex and challenging aspects of operating a business and should be given appropriate attention by every business. When a company is growing, payroll is one of the most important aspects of business to have in good working order. The right people on your in-house team or the right partner are essential. If you think a partner would be beneficial to your business, reach out! Relax: We got it.

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👻 s Among Us (How to Prevent Payroll Fraud)
👻 s Among Us (How to Prevent Payroll Fraud) 2560 1707 PayReel

Payroll fraud is incredibly common. White collar crimes can be slippery because they aren’t always as obvious as someone swiping a stack of bills from the cash register. Some perpetrators likely don’t even think of themselves as thieves. They’re just “redirecting” funds they feel should be theirs anyway, “manipulating their payroll records” to show they had extra vacation time, or clocking in when they’re not actually on duty. Those last two, by the way, were done by police officers and a firefighter, respectively.

What is Payroll Fraud? What Are The Stakes?

Payroll fraud is a misappropriation of funds that can happen a variety of ways. It could happen in the form of paying “ghost” employees or vendors. Such entities look legitimate but exist solely as a front. They may be workers who’ve quit, been fired, or died but are still receiving paychecks. They could be vendors that seemingly provide a service, but are in fact, nonexistent.

Another form of payroll fraud is when a worker clocks in when they’re not working or has someone clock in for them when they’re running late. Any form of falsifying hours falls under the umbrella of payroll fraud. Businesses lose billions in reported cases and small businesses are especially vulnerable. The duration of the schemes varies, but some businesses only find out after a worker has been fleecing it for years.

Resources to Prevent And Detect Payroll Fraud

Depending on a company’s setup, payroll fraud can sometimes be remarkably easy to pull off. Businesses with small payroll departments are most vulnerable, but it happens at the big companies and even feel-good nonprofits, too.

As usual, the best approach is prevention. Preventive measures discourage a would-be fraudster from trying something unsavory in the first place. They also make it easier for companies to catch perpetrators early on. Any resources a company puts toward preventative measures pales in comparison to the potential cost of lax procedures.

  1. Hire with discretion. Use the Social Security Administration website, E-verify or the IRS website to confirm candidates’ identities. Continue the process by conducting a background check before hiring anyone as well as at regular intervals even after they’re on the team. Institute a process and apply the same level of scrutiny to every employee at every level.
  2. Separate duties. This applies especially to smaller businesses where one person fills multiple roles. If the same person makes entries, writes checks, and audits the books, they have too much power and can cause problems. Separating duties when possible and having a system of checks and balances (pun intended) in place goes a long way toward preventing fraudulent behaviors.
  3. Conduct audits. Both internal and external audits can identify fraudulent activities and each has benefits. When used in conjunction, these efforts can pay off big time by preventing issues or detecting them early. Quarterly reviews are a healthy standard practice for companies of all sizes.

Something Doesn’t Seem Right. Now what?

So let’s say you’ve taken preventive measures to minimize risks and something still doesn’t add up. If you see any red flags, it’s time to dig.

  1. Watch for ghosts, unusual behavior, and anything out of the ordinary. Twitter made headlines in 2022 attempting to identify if there were ghost employees sucking up payroll. This article identifies other red flags to watch out for. Hint: an employee who never takes a day off may not be as dedicated as you think.
  2. Provide an outlet for other employees to report suspicions. Company leaders can’t have their eyes on everything and it’s often the ones in the trenches that will be first to identify when something is amiss. Organizations with hotlines receive more tips to potential fraud than those without.
  3. Follow the 💰. Corruption always leaves a trail. If more than one employee uses the same bank account, unknown vendors are receiving checks, and unusual expenses are popping up, it’s worth looking into. If something seems like it could be amiss, investigate. If you have the resources to conduct a thorough internal investigation, that’s a good place to start. If not, hire someone to do it for you. And do it quietly so you don’t tip off the fraudster(s) before you have all the information you need.

Can Businesses Conduct Payroll Fraud?

We’ve talked about the workers, but companies can be guilty of a different kind of payroll fraud as well. Businesses that misclassify employees as independent contractors to avoid paying payroll tax and other costs associated with employees are also guilty of payroll fraud. It’s not the focus of this post, but we cover worker classification in depth. Contact us for a free risk assessment if you think your worker classification practices could use a second look.

Bottom Line

Now is a great time to identify vulnerabilities, and determine a course of action. Most payroll fraud, while incredibly frustrating and costly, is highly preventable. If you’d rather offload some of your payroll completely, call 303-526-4900 or email us. We minimize the time, effort, and risk associated with worker classification, payroll, and more.

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What to Look For in a Video Production Payroll Service
What to Look For in a Video Production Payroll Service 2560 1707 PayReel

A good payroll service is effective with even the most intricate, multifaceted, heavily-regulated industries around. Video production is up there with the toughest industries (it’s called a production for a reason)! Media managers oversee an incredible about of details for multiple teams of independent contractors and freelancers and, when their productions get big enough, it can be a huge relief to outsource some of the most tedious aspects of their work to partners who specialize in those aspects. Enter a video production payroll service that specializes in breaking the relentless cycle of onboarding, chasing signatures, coordinating invoices, verifying timekeeping and researching the ever-changing Department of Labor compliance guidelines. 

What to Look For in a Video Production Payroll Partner

Effortless Onboarding

One of the most tedious and high-stakes aspects of engaging independent contractors is the up front paperwork. There are endless ts to cross and is to dot. Add the ever-changing compliance requirements from the Department of Labor and it’s enough to justify serious attention to the subject. But productions require serious attention in so many other areas so a partner that can simplify onboarding can make seriously better for media production teams. A payroll service that you can confidently outsource all of onboarding clerical work to will be one that is proactively addressing all the compliance issues related to engaging video crews and/or production teams.

Online Timekeeping And Painless Payroll

Video productions are a world of their own! It’s not uncommon for one contractor to fulfill multiple roles with different pay rates. Tracking the rules around overtime, special holiday rates, and making sure team members get the breaks they are entitled to by law can be overwhelming. An online service that keeps track of those details is a game changer. Look for one that also allows workers to input their information and supervisors to approve everything in one place. In a world with so many complex details, automation is key. The best payroll service allows media managers and supervisors to stop chasing people for paperwork, invoices, and time sheets while minimizing hiring costs and optimizing production efficiency. 

The Bottom Line

If a service that automates and streamlines everything from the hiring process to payroll, PayReel’s digital platform is where it’s at. It is the perfect resource for your specific production needs. Find out how we can help you make your next production your smoothest yet.

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Does Outsourcing Payroll Make Sense For Your Business?
Does Outsourcing Payroll Make Sense For Your Business? 2560 1799 PayReel

For some businesses, getting out from under onboarding, vendor payment, classifying temporary employees, and other hiring/payroll demands makes all the difference. It can free them up to focus on the central aspects of their business.  Some of the top issues intertwined with payroll are overtime rules, federal and state compliance, insurance requirements for workers, benefit eligibility / management, and worker classification. Each of these issues is a world unto itself—with corresponding needs. It takes a solid foundation of knowledge to handle them accurately. Plus, anytime you’re dealing with payroll, the stakes are high! Businesses have an ethical obligation to pay people accurately and in a timely manner as well as a legal obligation to abide by the rules and regulations.

10 Questions to Help Determine if Hiring a Payroll Partner is Right For You

  1. Do you regularly hire independent contractors and/or temporary employees?
  2. Is the time required for said hiring and onboarding a stressor/hindrance to other aspects of your work?
  3. Does red tape ever cause frustrating bottlenecks?
  4. Has your company’s hiring process ever hindered you from being able to onboard a worker quickly enough to accomplish your goals?
  5. Have you ever made a bad hire because of a time crunch?
  6. Do you ever end up fighting payrolling fires?
  7. Would outsourcing payroll (and/or corresponding issues such as worker classification) free you up to focus on more profitable/interesting aspects of your business?
  8. Do concerns about compliance, worker classification, IRS audits, and workforce headcount keep you up at night?
  9. Have you ever lost favor with one of your best contractors by paying late?
  10. Do you have a reputation among contractors for paying late?

Not everyone needs a service to handle payroll. For those who do, though, it can be a game changer. If you answered yes to any of the questions above, it’s worth taking inventory and considering what kind of partners could change the way you do business.  A good partner makes classifying, onboarding, and paying freelancers painless, paperless, and personalized. Any company that needs quick/frequent access to qualified contractors or that wants to take all the risk out of dealing with the independent workforce could be a good candidate to outsource payroll. If that’s you, we’re ready to chat about whether PayReel’s independent workforce engagement solutions make sense for you. It’s about time.

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