How do you Pay Remote Employees in Different Countries?
You’re the founder of a small tech company, with remote employees based all over the world. You’ve decided to employ all your employees through a sole proprietorship arrangement. But is asking all your employees to start a company really the best solution?
Your Options When Paying Remote Employees in Different Countries
Paying Your Remote Employee through a Local Partner
You could work with a local partner or affiliate in your employee’s country of residence. A local partner might be willing to place your employee on their payroll. Your employee would then be a legal employee of the local partner, and part of their payroll, withholding and benefits system. You will continue to direct and supervise your employees work.
Why you should work with a local partner
- In country expertise
- Local partners will help ensure that statutory benefits such as social security and workers’ compensation are offered in full compliance with the country’s laws
Why you shouldn’t work with a local partner
- Language and cultural barriers when liaising with a local partner who’s in a different country
- Can be costly
- You would have to use a different local partner each time you employ in a new country, so be prepared to engage with multiple people from different countries overlooking your different employees
Paying Your Remote Employee on Home Country Payroll
Your remote employee can be paid via your company’s payroll under certain circumstances. Most countries do not allow remote payrolls from a foreign company, but there may be specific laws that permit it as long as the company registers the employee.
In that case, payment can be made to your employee while complying with host country withholding requirements.
Outsourcing Payroll for Your Remote Employee
You could work with an outsourced payroll provider to pay your remote employee. There are two ways you could outsource your remote employee’s payroll.
One option is to use a local payroll provider that primarily computes withholding, compensation and then issues the check. There are limitations to how much a local payroll provider can do for your local employee. It is a limited administrative foreign employment solution that does not guarantee compliance with taxation, immigration or labor laws in the country...read more
Shield GEO makes international employment simple. Our customers use Shield GEO to employ and payroll hundreds of workers in over fifty countries. Find out more.