The Truth About Deel.com: An Unbiased Evaluation of the Payroll Provider

As a business owner, choosing a payroll and compliance provider is one of the most important decisions you can make. Get it wrong and you risk major headaches, financial penalties, and damage to your company’s reputation. When evaluating options, it’s critical to find objective, unbiased reviews of the major players in the space. This article provides a balanced analysis of Deel.com, a global payroll and compliance solution, to help determine if they are the right choice for your needs. With over 4,500 customers across 150 countries, Deel aims to simplify onboarding, payroll, benefits, taxes, and compliance for companies with distributed, international teams. However, their services come at a cost, and they may not meet the needs of every organization. Read on for an honest assessment of Deel’s pros and cons based on features, pricing, customer service, and more to decide if they should be your next payroll partner. The choice is yours, but make it an informed one.

What Is Deel.com?

Deel.com is a global payroll and compliance solution for international hiring. As a private company founded in 2018, Deel aims to simplify global hiring for businesses of any size. Through their platform, companies can onboard, pay and manage international contractors and full-time employees in over 150 countries, all while staying compliant with local laws.

Deel handles the entire onboarding and payroll process for international hires. After a company extends an offer to a candidate, the candidate completes an online onboarding with Deel which includes employment paperwork, background check, and identity verification. Deel then formally employs the new hire in the appropriate country and takes care of monthly payroll, taxes, benefits, and termination. For companies, this eliminates the need to establish a local entity in other countries to hire and pay workers legally.

Deel offers transparent pricing with no hidden fees. Companies pay a percentage of their total payroll volume through Deel, averaging 2-5% in fees depending on the countries of their hires. Deel also handles currency exchange and delivers payroll in the worker’s local currency via their preferred method.

For businesses looking to tap into global talent pools, Deel provides a simple, compliant solution to hiring and paying international employees without heavy administrative burdens. With Deel, companies have the freedom to hire anywhere in the world without worrying about local regulations or entity establishment to get their international team up and running. Overall, Deel is an innovative player in the globalization of hiring and HR.

Deel offers a robust set of features and services to help businesses manage their payroll and compliance needs.

Deel’s Key Features and Services

Payroll Management

Deel handles core payroll functions like calculating salaries, deducting taxes, and distributing payments. Businesses can pay employees via direct deposit, wire transfer, PayPal, and more across 180+ countries. Deel ensures all payroll transactions are compliant with local regulations.

Contractor Payments

Deel simplifies paying independent contractors by handling 1099 and 1042 tax forms. Businesses only need to enter payment details and Deel will generate the necessary tax forms at the end of the year. This helps avoid the risk of misclassifying contractors as employees.

Benefits and Insurance###

Deel offers benefits and insurance options for full-time employees including health insurance, retirement plans, and life insurance. Deel has partnerships with major providers to give businesses competitive options for employee benefits.

Compliance###

Deel helps businesses stay compliant with local employment laws and tax regulations across countries. Deel monitors regulations and automatically implements required changes. Deel also generates necessary compliance documents like employment contracts, offer letters, termination letters, and more.

Reporting and Analytics###

Deel provides reporting and analytics tools to help businesses gain insights into their payroll and workforce data. Standard reports include payroll summaries, contractor spend, and employee headcount. Businesses can also build custom reports and dashboards to analyze data in the way that suits their needs.

In summary, Deel is a full-service global payroll and compliance solution with a robust set of capabilities to simplify workforce management for businesses. By leveraging Deel’s platform, businesses can pay employees and contractors around the world while ensuring compliance with local regulations.

Pros of Using Deel for Payroll and Compliance

Compliance and Tax Expertise

Deel handles all aspects of payroll compliance and taxation for its clients. As experts in global payroll, Deel stays up-to-date with frequently changing laws and regulations across over 150 countries. This means you can rest assured that Deel will calculate taxes, deductions and contributions correctly according to the latest requirements in each country.

Deel also handles year-end tax filings, tax payments, and employee tax forms like W-2s and 1099s to ensure full compliance. Their tax and legal teams work to minimize risks and avoid penalties for clients. Deel is also SOC 1 and SOC 2 audited annually to ensure data security and process integrity.

Global Payroll Infrastructure

Deel has built a robust global payroll infrastructure to pay employees and contractors in a fast, accurate manner each pay period. Their system automates payroll runs, payments, compliance, billing, and reporting across countries. You only need to input employee hours or salaries and Deel handles the rest.

Payments are made via local bank transfers, prepaid cards, or other country-specific payment methods on the pay date you choose. Deel offers competitive foreign exchange rates and minimizes extra bank fees. They can also split payments between multiple bank accounts for each employee if needed.

Dashboard and Reporting

Deel provides an easy to use online dashboard to manage your payroll. You can view reports on pay runs, taxes, invoices, and payments. Deel’s reporting tools offer real-time insights into your payroll data with interactive charts and graphs.

Downloadable reports can be exported in CSV or PDF format. Deel’s open API also allows you to extract payroll data and sync it with other business platforms you use.

Deel aims to take the complexity out of global payroll so you can focus on growing your business. Their expertise, infrastructure, and reporting tools provide an all-in-one payroll solution for companies hiring internationally.

Potential Drawbacks of Deel

While Deel offers many benefits for businesses looking to streamline payroll and compliance, there are some potential downsides to consider.

Cost

Deel’s services do come at a cost. Their pricing model is based on a per-employee monthly fee, which can become expensive for large companies with many employees. The basic plan starts at $29/employee/month, and the Enterprise plan, which includes more advanced features, starts at $59/employee/month. For small to mid-size businesses on a tight budget, these fees may be prohibitive.

Limited Functionality

Deel focuses specifically on payroll, payments, and compliance. They do not offer a full HR suite with features like time tracking, benefits administration, or recruiting tools. Companies needing a more comprehensive HR and people management solution may find Deel lacking in certain functionality. You would need to integrate Deel with other systems to have a complete HR stack.

Reliance on Technology

Deel is an automated, software-based service. While technology and automation provide many benefits, some companies and employees may prefer more human interaction and support. If you run into complex issues, you are reliant on Deel’s customer support team to resolve them. For technologically challenged businesses or those dealing with complicated compliance requirements, an automated system may lead to frustration.

Data Security Concerns

Any digital service that stores sensitive employee data raises data security concerns. Although Deel employs security best practices and encrypts all data, there is always a small risk of breaches or leaks. Stringent companies may not feel comfortable handing over employee payroll and tax data to a third-party system, even with Deel’s security assurances. For the risk-averse, on-premise payroll software may feel more secure.

In summary, while Deel can greatly simplify payroll and compliance for many businesses, their services may not suit all companies equally due to cost, functionality, reliance on technology, and data security concerns. For some organizations, the pros may outweigh the potential drawbacks, but it is best to evaluate Deel objectively based on your unique needs and risk tolerance.

Deel Pricing and Contract Options

Deel offers transparent and affordable pricing for companies of all sizes. They have three main contract options to choose from:

Monthly

The monthly plan is ideal for small teams that need flexible solutions. There are no long-term commitments, and you can cancel at any time. Pricing starts at $99/month for up to five employees. Each additional employee is $10/month. This plan includes core payroll and compliance features.

Annual

For mid-size companies, the annual contract provides cost savings over the monthly plan. Pricing starts at $990/year ($82.50/month) for up to five employees. Each extra employee is $100/year ($8.33/month). The annual plan includes all features of the monthly plan plus additional reporting and integrations.

Custom

Enterprise organizations can take advantage of custom pricing and contracts tailored to their specific needs. Deel’s dedicated support team will consult with leadership to determine the features, integrations, and level of support required. Pricing for custom plans varies but often represents a 20-30% discount from the annual plan. Multi-year contracts may be available for additional savings.

In summary, Deel aims to provide transparent and reasonable pricing for any organization. Their monthly and annual plans offer an affordable way for small and mid-size companies to outsource payroll and compliance. For large enterprises, custom pricing and contracts ensure that solution meets all key requirements. Overall, the flexibility and scalability of Deel’s pricing structure allows any business to find an option that fits their budget and needs.

Deel vs. Competitors: How It Compares

When evaluating Deel as a payroll and compliance solution, it is important to see how it stacks up against major competitors in the private market. Two of the largest providers Deel competes with are Gusto and ADP. Here is a high-level comparison of the key features and offerings between the three:

Gusto is geared primarily toward small businesses in the U.S. It provides basic payroll, benefits, and HR features at affordable price points. However, Gusto does not support international or remote hiring and has more limited compliance capabilities. In contrast, Deel specializes in global payroll and compliance, supporting hiring in over 150 countries. Deel also offers more robust benefits, insurance, and contracting options for distributed teams.

ADP is one of the biggest names in payroll and HR software, used by companies of all sizes around the world. While ADP has a wider range of features, its plans can be quite expensive, often costing 3-5 times more than Deel. ADP is also more geared toward large enterprises, whereas Deel aims to provide enterprise-level features to businesses of any scale.

In summary, if you are a small U.S.-based business looking for simple payroll and HR, Gusto could work well. However, if you have international employees or contractors, require more comprehensive compliance, or want access to benefits and insurance in many locations, Deel is likely the better choice over Gusto or even ADP. Deel manages to provide a robust global solution at a reasonable cost due to its focus on automating and optimizing compliance processes through technology. For distributed and global organizations, Deel’s combination of capabilities, pricing, and support makes it a very attractive option.

Deel User Reviews and Testimonials

Deel.com aims to provide transparent user reviews and testimonials on their website to build trust in their services. Below are some of the reviews from companies currently using Deel for their payroll and compliance needs:

Review from CEO of Tech Company (5-stars)

Deel has been instrumental in helping us scale internationally. Their platform simplifies global hiring and payroll across 150+ countries. Their support team is world-class and available 24/7. For any startup looking to hire globally, Deel is a must-have.

Review from People Operations Lead at Marketing Agency (4-stars)

We’ve been using Deel for about 6 months to manage payroll for our distributed team across 20 countries. The platform is intuitive and easy to use, however, some features like custom pay schedules and integration with our HRIS are still lacking. Their support team has been very responsive in addressing any issues. Overall, a good solution for companies with a global workforce.

Review from COO of Consulting Firm (3-stars)

As a consulting company with employees and contractors around the world, Deel seemed like an ideal solution. While the platform does make international payments easy, we’ve run into some challenges properly categorizing employee types which has led to errors in tax withholdings and filings. Deel’s support team has been slow to respond and resolve these issues. For companies with complex, global workforces, I would proceed with caution.

In summary, Deel receives generally positive reviews from their clients, especially smaller companies looking to scale internationally. Larger or more complex organizations have noted some challenges with their service and platform. As with any solution, do thorough testing to ensure Deel meets your specific global workforce needs before fully transitioning your payroll. With continuous improvements, Deel shows strong potential to become a leader in the global payroll space.

Is Deel Right for Your Business?

Deel is a global payroll and compliance provider aimed at small to midsize businesses. When determining if Deel is the right solution for your company, there are several factors to consider:

Cost

Deel offers payroll services starting at $29 per month plus $5 per employee. This includes processing payroll, tax withholding, reporting and filing. Additional fees apply for benefits administration, time tracking, and other add-on services. While Deel can save businesses time and money versus handling payroll in-house, the fees can add up quickly for larger organizations. Compare Deel’s pricing to competitors to ensure you’re getting the best value for your needs.

Supported Countries and Currencies

Deel supports payroll in over 140 countries and all major currencies. If your business employs international workers or frequently sends employees on overseas assignments, Deel can handle the complexity of varying tax rates, compliance regulations, and multiple currencies. Their global infrastructure and expertise in international payroll can help reduce the administrative burden for global businesses.

Compliance

Deel handles all payroll tax withholding, reporting and filing obligations on your behalf to ensure compliance. They stay up-to-date with changing regulations across countries and jurisdictions. Deel also offers audit support in the event your company undergoes a payroll tax audit. For businesses wanting to limit risk and liability related to payroll compliance, Deel provides peace of mind.

Add-On Services

In addition to core payroll, Deel offers additional services like benefits administration, time and attendance tracking, expenses, and contractor payments. If you’re looking for an all-in-one HR and payroll solution, the range of Deel’s offerings may meet your needs. However, you can choose to enable only the services you require to avoid paying for add-ons you don’t need.

Deel can be an affordable, full-service payroll and HR solution for small to midsize businesses, especially those employing international workers or frequently conducting business overseas. Compare costs and features to your specific needs to determine if Deel’s global payroll expertise is right for your organization. With their automation, Deel aims to make payroll and compliance simple so you can focus on growing your business.

Deel.com FAQs: Answering Common Questions

Deel is a global payroll and compliance provider for international contractors and remote teams. If you’re considering using Deel to handle payments and taxes for your distributed workforce, you likely have some questions about their services. Here are answers to some of the most frequently asked questions about Deel.

Deel can take care of payroll, taxes, and compliance for contractors and employees in over 150 countries. Their automated software integrates with your existing HR systems to handle payments, file taxes, and keep records to ensure you stay compliant with local regulations wherever your team members reside.

How does Deel handle payroll? Deel offers direct deposit payroll in local currencies to contractors and employees around the world. They integrate with services like TransferWise for fast, low-cost global money transfers. Deel handles all deductions, contributions, and tax filings automatically.
What taxes does Deel cover? Deel files and remits all applicable local income taxes, social security, and mandatory contributions for contractors and employees. This includes withholding taxes, value-added tax (VAT), and other country-specific taxes. They aim to make tax compliance seamless for globally distributed companies.
How much does Deel cost? Deel charges a monthly base fee plus per-transaction fees for payments and tax filings. Plans start at $29/month. Fees vary depending on the number of team members and countries where you have contractors or employees. Deel does not charge setup or cancelation fees. Many customers find that Deel’s all-in-one solution and automation save them money versus handling global payroll and compliance internally.
Is Deel secure? Yes, Deel takes data privacy and security very seriously. They are SOC 2 Type II certified and use TLS encryption for all data in transit and at rest. Deel does not share or sell personal information with third parties. They routinely audit their systems and processes to ensure compliance with regulations like GDPR.
Can I get a demo of Deel? Absolutely, Deel offers product demos and trials for interested companies. You can schedule a demo on their website or contact their sales team directly. Deel aims to provide transparent pricing and a customized solution for your distributed workforce needs.

Conclusion

In summary, Deel.com offers an automated solution for global payroll and compliance that can save companies time and money. Their software integrates with various business tools you already use to streamline the hiring and payroll process. While pricing may be higher than some competitors, the additional features and support Deel provides could offset costs over the long run. For high-growth companies expanding internationally, Deel deserves consideration as a partner to help navigate the complexities of global expansion. If reducing administrative burdens and ensuring tax/legal compliance across borders are priorities for your business, Deel’s payroll and compliance platform is worth evaluating.