The Real Cost of Payroll

Summary: Paying contractors internationally can cost more than you expect. In a recent chat, Plane’s CEO Matt Pelc, Workweek’s Hebba Youssef, and Barstool Sports’ Rachel Ackerman explained where extra charges hide and how to avoid them. Big takeaways: watch out for currency exchange markups, question “setup” fees, and beware of bundled packages that include things you don’t use. Don't be afraid to go through every line of your payroll contract with your vendor, negotiate where you can, and make sure your contractors get paid quickly and will get excellent support. Cutting hidden costs keeps your budget — and your contractor relationships — in good shape.Managing international payroll should ideally be straightforward, but somehow it never is. Pick a provider, run the payments, and move on. But as our panel uncovered, the true cost of payroll often includes a lot more than what’s on the invoice.Matt Pelc (co-founder and CEO of Plane), Hebba Youssef (CPO at Workweek and founder/creator of I Hate It Here), and Rachel Ackerman (Director of People Ops at Barstool Sports) sat down for a candid conversation about the messy reality of paying international contractors — and how companies can reduce hidden costs.Here are the biggest takeaways.

Currency exchange fees are sneaky and add up fast

One of the biggest hidden costs in global payroll is currency exchange markups. While many providers advertise flat fees, most are quietly adding 1 to 3 percent (and sometimes even more) on top of every transaction through FX markups.“The markup isn’t always obvious. You think you’re paying one rate, but when you check the math, it’s off by more than you expected,” Matt explained.The panel recommends asking your provider to disclose their markup rate.

Not all setup fees are justified

Providers often bundle vague “setup” or “implementation” fees into contracts. These can range from a few hundred to several thousand dollars, without much clarity on what you’re actually paying for.“Sometimes the setup fee just means ‘We uploaded your company logo,’” Hebba joked.Before agreeing to anything, ask for a breakdown of what the setup fee covers and whether it’s negotiable.

Bundled deals might not be deals at all

Many vendors pitch “bundled” packages as cost-effective, but the math doesn’t always add up. You could be paying for services you don’t need, or overpaying for ones you use frequently.Rachel shared a few examples from her experience at Barstool where unbundling services or pushing for usage-based pricing saved significant money.

You can (and should) negotiate every line of your payroll contract

This was one of the most tactical parts of the session. Hebba walked through how to review your contract line by line, including where to push back.Key questions to ask:

What’s the markup on currency exchange?

What services are bundled, and can they be itemized?

Are there fees that scale with contractor volume that should be capped?

“Most people don’t even know they can negotiate this stuff,” said Rachel. “But if you ask the right questions, there’s usually wiggle room.”

Contractor experience matters, too

Beyond internal costs, how your payroll provider handles the contractor experience can affect trust and retention. Delays, surprise fees, or poor transparency can lead to friction that hurts long-term relationships.“The contractor experience is part of your employer brand, even if they’re not full-time,” Hebba said.Make sure your provider offers a clean, transparent, and timely experience—not just for you, but for your contractors too. Some providers, like Plane, offer direct support to contractors, which can make a big difference in day-to-day operations.

Watch the full webinar

If you’re navigating the complexity of global payroll or contractor management, you won’t want to miss this conversation—three experts break down what actually works.👉 Watch the full on-demand webinar hereIf you’re paying international contractors or thinking about switching providers, this is a must-watch.