Best HR Software for Remote Teams: Global Payroll & Compliance Solutions

Last Updated: February 2026

Managing a remote or distributed team brings unique HR challenges: multi-state or international payroll, compliance across jurisdictions, async communication, equipment management, and maintaining culture across time zones. Traditional HR software was built for co-located teams—these platforms are purpose-built for the remote work era.

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Pain Points for Remote and Distributed Teams

Remote teams face distinct HR challenges:

💡 Key Principle: For remote teams, HR software isn't just about efficiency—it's about enabling a business model. The right platform lets you hire the best talent anywhere; the wrong one limits you to specific geographies.

Top 5 HR Software Solutions for Remote Teams

1. Deel — Best for International Contractors & Global Employment

Starting Price: $49/contractor/month, $599/employee/month (EOR)

Best For: Companies hiring internationally, especially contractor-heavy teams

Deel has become the de facto standard for global hiring. Their Employer of Record (EOR) service lets you hire full-time employees in 150+ countries without setting up local entities. Their contractor management is equally robust, handling payments, compliance, and classification.

Key Features:

âś… Pros

  • Widest global coverage (150+ countries)
  • Fastest time-to-hire internationally (days, not months)
  • Excellent contractor management
  • Transparent pricing with no hidden fees
  • Modern, user-friendly interface
  • Strong compliance documentation
  • Great for scaling globally quickly

❌ Cons

  • EOR services are expensive ($599/employee/month)
  • Not a full HRIS (no performance management, recruiting)
  • Customer support quality varies by region
  • Benefits options limited in some countries
  • Better for smaller teams (<200 employees)

Bottom Line: If you're hiring internationally or managing a global contractor workforce, Deel is the market leader. It removes the complexity of global employment and lets you hire talent anywhere in days.

2. Remote — Best for Employee-Focused Global Teams

Starting Price: $29/contractor/month, $599/employee/month (EOR)

Best For: Companies prioritizing employee experience and benefits in global hiring

Remote (formerly Remote.com) is Deel's primary competitor but positions itself as more employee-centric. They emphasize fair pay, comprehensive benefits, and employee experience across countries—not just compliance and speed.

Key Features:

âś… Pros

  • Better benefits packages than competitors
  • Strong focus on fair, equitable pay
  • Excellent employee experience and support
  • Equity management included (rare in this category)
  • Great for fully remote, distributed teams
  • Transparent pricing

❌ Cons

  • Fewer countries than Deel (80 vs. 150+)
  • Premium pricing on EOR services
  • Smaller company = occasionally slower support
  • Not a full HRIS (must pair with other tools)
  • Less focus on contractor management than Deel

Bottom Line: Remote is the choice for companies that want to compete on benefits and employee experience, not just cost arbitrage. If you're building a truly remote-first culture with international employees, Remote's employee-centric approach stands out.

3. Rippling — Best All-in-One for Remote-First Companies

Starting Price: $8/employee/month (HRIS), $35/employee/month (with payroll)

Best For: Tech companies that want HR, IT, and finance unified for global teams

Rippling isn't just for remote teams, but its combination of HR, IT automation, and global payroll makes it incredibly powerful for distributed companies. Onboard a new employee in Portugal and Rippling automatically handles payroll, benefits, laptop provisioning, and app access.

Key Features:

âś… Pros

  • True all-in-one platform (HR + IT + finance)
  • Best IT automation for remote teams
  • Scales from 10 to 1000+ employees
  • Strong U.S. multi-state compliance
  • Modern, fast interface
  • Excellent for tech-forward companies

❌ Cons

  • Global payroll via partnerships (not native in all countries)
  • Complex pricing (many modules and add-ons)
  • Implementation can be overwhelming
  • International benefits less robust than Deel/Remote
  • Customer support quality varies

Bottom Line: Rippling is the best choice if you want one platform for everything and your team is tech-savvy. It's especially powerful for U.S.-based companies with remote employees across states, plus some international contractors/employees.

4. Gusto — Best for U.S. Multi-State Remote Teams

Starting Price: $40/month + $6-12/employee

Best For: U.S.-based remote teams (not international) that prioritize simplicity

Gusto isn't built for international hiring, but if your remote team is U.S.-only (or primarily U.S. with a few contractors abroad), it's the simplest, most affordable option. Multi-state compliance is excellent, and the user experience is unmatched.

Key Features:

âś… Pros

  • Best user experience in the category
  • Extremely affordable for U.S. teams
  • Excellent multi-state compliance
  • Transparent pricing with no hidden fees
  • Great customer support
  • Perfect for 5-100 employee remote teams

❌ Cons

  • U.S.-only for employees (limited international contractor support)
  • Not built for global teams
  • Basic performance management features
  • No equipment management or IT features
  • Limited customization vs. enterprise platforms

Bottom Line: If your remote team is U.S.-based (employees in 5+ states) and you don't need international hiring, Gusto is the best value. It handles multi-state complexity beautifully at a fraction of the cost of global platforms.

5. Oyster — Best for Fully Distributed, Remote-First Companies

Starting Price: $29/contractor/month, $699/employee/month (EOR)

Best For: Remote-first companies (no HQ) that want culture-building tools alongside compliance

Oyster positions itself as "employment infrastructure for the distributed world." Beyond EOR and payroll, they focus on the soft side of remote work: engagement, culture, distributed team management, and equity in compensation.

Key Features:

âś… Pros

  • Widest country coverage (180+ countries)
  • Strong focus on distributed team culture
  • Excellent compensation benchmarking tools
  • Good balance of compliance + employee experience
  • Great for fully remote companies (no office)
  • Contractor-to-employee conversion is smooth

❌ Cons

  • Premium pricing ($699/employee EOR vs. $599 competitors)
  • Smaller player = less brand recognition
  • Support availability varies by timezone
  • Not a full HRIS (must integrate with others)
  • Some features feel early/beta

Bottom Line: Oyster is the choice for companies that are "remote-first by design"—no headquarters, fully distributed culture. The cultural and engagement tools set it apart from pure compliance platforms like Deel.

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Comparison Table: Quick Overview

Platform Contractor Price EOR Price Countries Best For Unique Feature
Deel $49/month $599/month 150+ Fast global hiring Equipment mgmt
Remote $29/month $599/month 80+ Employee experience Equity management
Rippling Included $35/month+ 90+ All-in-one platform IT automation
Gusto Included U.S. only U.S. (50 states) U.S. multi-state Simplicity
Oyster $29/month $699/month 180+ Remote-first culture Distributed tools

Signs You Need Remote-Specific HR Software

Indicators traditional HR software won't work for your remote team:

💰 ROI Reality Check: Setting up a legal entity in one country costs $10K-50K plus $2K-5K/month in accounting/admin. EOR services cost $599/employee/month. For 3-5 employees in a country, EOR is dramatically cheaper. Breakeven is around 10+ employees in one country—then entity setup makes sense.

Global Hiring Strategy: Contractors vs. Employees

🤝 When to Use Contractors

Best for: Short-term projects, specialized skills, testing new markets, cost-conscious early-stage

Risks: Misclassification penalties ($10K-50K+ per person), lack of loyalty/engagement, limited control over work hours/methods

đź‘” When to Use Employees (via EOR)

Best for: Long-term roles, core team members, building local presence, employee loyalty

Costs: Higher platform fees ($599/month), benefits expenses, harder to terminate

🔄 Hybrid Approach: Start Contractor, Convert to Employee

Many companies use a "trial period" model:

  1. Months 1-3: Hire as contractor to test fit and performance
  2. Months 4-6: Convert top performers to employees via EOR
  3. Beyond 6 months: If you have 10+ employees in one country, consider setting up local entity

Platforms that make this easy: Deel, Remote, Oyster all support contractor-to-employee conversion

⚖️ Compliance Checklist by Country Tier

Country Tier Examples Complexity Recommended Approach
Tier 1 (Easy) U.S., Canada, UK, Australia Low Contractors work; EOR for employees
Tier 2 (Moderate) Germany, France, Spain, Singapore Medium EOR required; strong labor protections
Tier 3 (Complex) Brazil, India, China, Argentina High EOR essential; local legal guidance needed

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Implementation Guide for Remote Teams

đź“‹ Phase 1: Foundation Setup (2-4 weeks)

  1. Audit current state: List all employees/contractors by location, classification, pay structure
  2. Choose your platform(s): Decide on all-in-one (Rippling) vs. specialized (Deel + BambooHR)
  3. Set up legal structure: Determine which countries need EOR vs. contractor relationships
  4. Configure payroll: Set up multi-currency payments, define pay schedules by region
  5. Document policies: Remote work policy, equipment policy, time zone expectations, async communication norms

🛠️ Phase 2: Migration & Onboarding (3-4 weeks)

  1. Migrate existing team: Move current employees/contractors to new platform (coordinate timing to avoid pay disruption)
  2. Train HR team: Global payroll processing, compliance documentation, contractor management
  3. Set up integrations: Connect Slack, accounting software, time tracking, project management tools
  4. Test payments: Run one full payroll cycle in parallel with old system before cutover
  5. Communication rollout: Announce to team with FAQs, demo videos, support channels

👥 Phase 3: Scaling & Optimization (Ongoing)

  1. Establish hiring playbook: Contractor vs. employee decision tree, country-specific checklists
  2. Monitor compliance: Quarterly audits of contractor classifications, visa expirations, tax filings
  3. Optimize costs: Review EOR vs. entity setup when you hit 10+ employees in one country
  4. Improve experience: Survey employees about pay, benefits, onboarding experience by country
  5. Build culture: Use platform's engagement tools (if available) or layer on Donut, Lattice, etc.

⚠️ Common Remote HR Mistakes

Frequently Asked Questions

What's the difference between EOR and setting up a local entity?

Employer of Record (EOR): A third-party company becomes the legal employer in a country, handling all compliance, payroll, and HR admin. You pay them a monthly fee per employee. Local Entity: You register your company in that country, hire directly, handle compliance yourself. Rule of thumb: Use EOR for 1-10 employees in a country; set up entity for 10+ employees to save long-term costs.

Can I legally hire employees in any country?

Technically yes, but some countries restrict hiring (e.g., China requires local entity for any employees). Most countries allow EOR-based hiring. Platforms like Deel and Remote handle legal setup, so you don't need to research country-by-country. Red flags: Countries with strict data residency laws (China, Russia), complex visa requirements (Switzerland, Japan), or high labor protections (France, Brazil) need extra diligence.

How do I ensure contractor classification is legal?

Use platform-provided templates (Deel, Remote, Oyster have country-specific contractor agreements). Key factors: (1) Contractor controls how/when they work, (2) They use their own equipment, (3) They can work for other clients, (4) Fixed project fee vs. hourly wage, (5) No benefits or PTO. When in doubt, consult local employment lawyer or convert to EOR employee—misclassification penalties are severe ($10K-100K+ per person).

Should I pay everyone the same salary regardless of location?

No consensus here—two schools of thought: Location-agnostic pay: Pay same salary (e.g., $120K) everywhere—easier to manage, perceived as "fair." Location-based pay: Adjust for cost of living—$120K in SF = $80K in Portugal. Most companies do location-based (it's 2-3x cheaper). Use tools like Remote's Fair Pay Calculator or Oyster's benchmarks. Transparency matters more than approach—don't hide your methodology.

What if an employee wants to relocate to another country?

This is complex. Options: (1) Same country, different city: Easy—update address in HRIS. (2) Different state (U.S.): Register in new state, update withholding—takes 2-4 weeks. (3) Different country: Usually requires new contract via EOR in new country—can take 4-8 weeks. Pro tip: Have a relocation policy upfront (90 days notice, approval process, who pays relocation costs). Platforms like Deel and Remote handle country-to-country transfers.

How do benefits work for international employees?

EOR platforms (Deel, Remote, Oyster) partner with local benefits providers in each country—employees get health insurance, pension/retirement, and statutory benefits automatically. Quality varies by country. Tier 1 countries (UK, Germany, Canada) have great benefits packages. Tier 2/3 countries (Philippines, Mexico, Argentina) have more limited options. Budget 20-40% on top of salary for benefits + employer taxes internationally.

What about equipment and asset management?

Deel and Oyster offer equipment procurement and shipping—you order a laptop, they ship to employee's address globally. Alternative approach: Give employees a stipend ($1,500-2,500) and let them buy locally—faster and easier for them. Track assets in a spreadsheet or use Rippling's device management. For offboarding, either have employee ship back (expensive) or let them keep it (include in final pay documentation).

How long does it take to hire someone internationally?

Contractor: 1-3 days (sign agreement, set up payment). Employee via EOR: 5-14 days (background check, contract signing, local registration). Employee via local entity: 4-12 weeks (entity setup, bank account, local hiring process). Fastest option: Deel or Remote EOR—hire someone in Portugal on Monday, they start the following Monday.

Final Recommendation: Which Platform Should You Choose?

Best for most international teams: Deel. Widest coverage, fastest implementation, transparent pricing. It's the market leader for good reason.

Best for employee experience and benefits: Remote. If you want to compete on benefits quality and fair pay, not just speed and cost.

Best all-in-one for tech companies: Rippling. If you want HR, IT, and finance unified and your team is primarily U.S. + some international, Rippling is unmatched.

Best for U.S. multi-state teams (no international): Gusto. Simplest, most affordable, best UX for domestic remote teams.

Best for remote-first culture: Oyster. If you're building a distributed-by-design company with no headquarters, Oyster's culture tools stand out.

Budget-conscious hybrid approach: Gusto (U.S. employees) + Deel (international contractors). Best value for small remote teams.

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About This Guide: We research and compare HR software to help remote and distributed teams make informed decisions. Our recommendations are based on features, pricing, user reviews, and suitability for global hiring needs. We may earn commissions from some providers, but this doesn't influence our editorial independence.