Companies are increasingly becoming international either by engaging with foreign contractors, or by expanding their staff overseas.
Whether dealing with freelancers or employees, paying staff overseas is not easy. There are many aspects involved that can complicate things.
For one, various charges get applied to international transactions. You need to rely on a payment platform or institution to help you make a payment. This is where a platform like REMITR comes handy. It’s an affordable solution used for making stress-free overseas payments.
Problems with Transferring Money Overseas
- Timesheets: Payments are usually based on timesheets and keeping track of overseas timesheets is a mess on it’s own. You need to track multiple metrics like hours online, tasks completed, deliverables submitted, etc. We recommend that you start maintaining a shared timesheet for all of your remote workers, to make sure they’re paid accurately.
- Currency conversion: Every country you send money to implies a currency conversion– conversions come at a cost. Most commonly, the person making the payment bears additional charges involved. The recipient does not prefer this and it’s especially important in case of staff payments, because you need to ensure they receive their full salary payment in their local currency. Evaluate the cost vs. benefit of hiring a worker from a different geography. If you find that the cost incurred, including the overheads, is worth the work done, go ahead!
- Tax liabilities: Each country will also have its own tax regulations. There could be additional tax liabilities to factor in based on the method of transfer you use. Moreover, since the worker is bound by the laws of their country, you may need to account for vacation pay, insurance and tax policies in both the country where you do business and the one from where you have hired staff.
- Documentation: Each country will also have stipulated documentation rules to adhere to. In the United Kingdom and Thailand, organizations pay their employees with a foreign employer exception if they do not have any permanent establishments in that country. Other countries like France, Sri Lanka and Estonia have payroll law compliance options for the employers that can be checked out. Few countries put the responsibility on the employee to declare themselves as being foreign-employed. Based on these factors, payment terms and time periods can differ significantly.
- Reliability: It’s essential to pick a reliable payroll option that is stress-free, and also takes cares of all legal and compliance requirements. You need one that is secure, fast, and also affordable in the long run. Gone are the days of making workers wait for weeks on end to receive their salary- in today’s times, speed holds the upper hand.
Payment options: Wire Transfer) – Ideally, this may seem like the easiest way to make payments, by directly transferring funds from your account to your employee’s account overseas. Wire Transfer is widely used for payroll payments and other such transactions. While Wire Transfer is mostly an efficient system, it also involves the highest charges. It could even take up to two weeks, for the payment to be available in the recipient’s account.
Payment platforms – Another option is through specific payment platforms or service providers like PayPal or Western Union– which, will are quite fast but may come at high cost, and apply an exchange fee depending on the origin/destination of funds.
REMITR International Payments– you can avoid the issues of exorbitant service fees, currency conversion issues, delay in payments, and any other hidden fees. REMITR offers a state-of-the-art platform that is easy and intuitive to use. As opposed to the variable fee on Wire Transfer (which depends on the amount of money being transferred), REMITR offers the benefit of a flat fee per payment.
REMITR- Your Go-To Solution for International payments
REMITR was created with the intention of reducing time and cost, associated with international payments. It’s secure, easy to register, and an efficient solution that can be used by businesses as well as individuals for making overseas payments. REMITR allows you to make payments without wating time going to the bank branch or worrying about Wire Transfer timings.
The biggest assurance of REMITR while doing salary payments is that your staff gets the exact amount they need in EURO, Philippines Peso (PHP), Indian Ruppes (INR) or any other local currency. Their exact salary gets credited directly to their bank account without deduction of any fees and charges.
You can connect REMITR to your purchase management software to put bills and invoices on autopilot. This automation creates readymade payments and reduces data entry efforts, and errors that usually creep in.