Startup Hiring and Payroll
Startup Hiring & Payroll - A Guide for Early-Stage Founders on Hiring and Payroll in Startups

A Guide for Early-Stage Founders on Hiring and Payroll in Startups

The moment should eventually arrive when you need to start considering payroll, regardless of whether you are an early-stage startup or already have experience under your belt. The best methods for processing payroll are offered in this blog.

Before they’ve raised an adequate amount of capital or have significant sales, founders often pay themselves and their staff as contractors. However, you should think about payroll support internally or through a service provider whenever you decide to switch to employee status and/or recruit full-time staff. 

Finding a global-first platform where you can pay and manage all workers in one place is crucial, regardless of whether you choose to pay contractors and employees in different currencies around the world, hire international talent in nations where you don’t yet have an entity, or classify contractors compliantly.

Understanding Local and Global Payroll

The first stage, with so many payroll systems available, is to ascertain what distinguishes a local payroll solution from a global one.


  • suited to the particular tax laws, rules, and labor practices of a certain nation.
  • Your startup will require additional local vendors to process payroll in each region as it grows.


  • scalable as your business expands.
  • oversees payroll administration and associated HR tasks across several nations or territories.
  • guarantees that employees and contractors are paid correctly and in accordance with the different tax laws, labor rules, and reporting specifications of any nation where the company conducts business.
Startup Hiring & Payroll - A Guide for Early-Stage Founders on Hiring and Payroll in Startups

Various methods for paying and hiring your staff

There are several ways that you may compensate your team:


  • A cheap and easy method of integrating employees from all around the world.
  • Expand internationally and reduce the risk of exploring new markets.
  • sometimes can be challenging to find a cheap overseas payment option.

Employees via your own local organization

  • Establish a bank account, recruit internal HR/payroll specialists, hire a local organization to hire them legally, or make use of a service provider.
  • Running costs and setup costs can be very costly.

Employees via an Employer of Record (EOR) such as Deel

  • Employ FTEs legally in nations where you do not have an organization.
  • The EOR manages:
  • Processing payroll
  • tax retention
  • Regional deals
  • Verification and onboarding
  • Termination

Cooperate with a PEO, or Professional Employer Organization

  • A co-employment agreement is a more common model in the United States.
  • can provide state-by-state compliance management.
  • Benefits, payroll, taxes, and HR duties are managed by PEO.

Here’s the bottom line for startup entrepreneurs looking for a payroll solution: Seek a platform that prioritizes worldwide adoption and streamlines personnel management and payroll as soon as possible.

This crucial piece of tech makes payments easier, lets you collaborate legally with foreign talent, and makes it simple to lead a worldwide workforce from a single, centralized platform.

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