Global Payroll Options: Deel and Gusto's Solutions for Philippine Outsourced Talent
Updated: Nov 15
In an increasingly globalized economy, businesses are often in need of specialized talent that may not be readily available locally. This has led to a surge in outsourcing talent from countries like the Philippines, where a skilled workforce is available at competitive rates. However, with this global reach comes the responsibility to navigate and adhere to varying international labor laws. This is where payroll platforms like Deel and Gusto come into play.
Which of these platforms is best for your business? Let’s delve into the pros and cons of both Deel and Gusto, focusing on their specific features and how well they cater to the needs of businesses managing outsourced talent in the Philippines.
Deel - The Compliance-Centric Platform
International Labor Law Compliance: Deel stands out with its compliance features, ensuring adherence to the labor laws of over 100 countries, including the Philippines.
Diverse Payment Options: Contractors can be paid in their local currency, which for the Philippines, means no conversion hassles for the talent.
Contract Flexibility and Integration: Offers the creation of compliant contracts, catering to both independent contractors and full-time employees. Moreover, it provides unified payroll reports for all countries in which your business operates, with the added capability to integrate seamlessly with third-party payroll providers.
Cost for Smaller Operations: For small businesses or those with a limited number of international contractors, Deel's pricing may be a significant factor.
Feature Richness Complexity: The plethora of features offered, while comprehensive, may require a steeper learning curve for some users.
Gusto - The Simple Payroll Solution
User Experience: Known for its simplicity and ease of use, Gusto provides a very straightforward payroll processing experience.
Integrated U.S. Benefits: While more U.S.-centric, Gusto offers a range of benefits that are seamlessly integrated into its payroll services.
U.S. Tax Automation: Gusto excels in handling U.S. tax calculations, payments, and filings automatically.
International Capabilities: Gusto's primary focus on U.S. employees means its international payroll features may not be as robust as Deel's.
Hidden Costs: While user-friendly, certain advanced features or services on Gusto may come at an extra cost.
The Importance of Following Labor Laws:
Labor laws are designed to protect workers and ensure fair treatment, and this is particularly crucial when dealing with international talent. Non-compliance can result in legal penalties, financial damages, and reputational harm, leading to latent anxiety and uncertainty for businesses.
Deel directly addresses this concern by aligning its service with local labor laws, offering peace of mind for businesses that want to ensure they're compliant in their international hiring practices.
Gusto, while more tailored for the U.S. market, has been expanding its services to cater to international labor law compliance, albeit on a more limited scale compared to Deel.
Both Deel and Gusto not only automate payroll processing and ensure compliance with local regulations but also provide a suite of features that enhance employee satisfaction and overall business efficiency. These two platforms provide powerful tools to manage the payroll of outsourced talent in the Philippines. The choice between the two will largely depend on the scale of your international operations and the complexity of labor law compliance you're willing to undertake.
Deel is your go-to for extensive international coverage and compliance assurance, making it a suitable choice for businesses with a widespread global workforce. On the other hand, Gusto offers a highly intuitive experience, with a stronger focus on U.S.-based operations. If your business primarily operates in the U.S. or has simpler international payroll needs, Gusto might be the more user-friendly option.
Whichever you choose, ensuring compliance with labor laws is not only a legal obligation but also pivotal for securing your business’s integrity and the well-being of your workforce.
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