Below, you’ll learn about four of the ways you can pay your international workers. We hope this helps you develop the relationships that will help your business thrive.
Pay Them From Your Home Country’s Payroll
This can seem like the simplest option, and if you only need to pay the worker internationally for a brief period of time, it may be.
The issue is that this means you have to comply with both your home country’s payroll laws, as well as the laws for the country the worker is currently in. This frequently leads to compliance issues.
Whether or not this option is viable will also depend on the country the worker is currently in.
Pay Them As An Independent Contractor
There may be situations where the worker is an independent contractor. However, this method can be tricky depending on how the work itself is structured.
You cannot simply call someone a contractor because they’re working overseas. A contractor isn’t typically expected to receive performance reviews, benefits, and a work schedule, so if you’re providing them with all three of those, this option will not be viable.
That said, the UK and Thailand provide a Foreign Employer Exception. This means that you are not required to file taxes just because you have employees in the country. Instead, you pay them as if they are an independent contractor, even if they are your employee.
Pay Them From the Foreign Country’s Payroll
If you’re a large company with a significant presence in a foreign country, it may be worth registering with the country.
This method is one of the surest ways to ensure you don’t run into compliance issues. At the same time, it requires time and capital to set up. If you don’t have a significant presence in a country or your business isn’t big enough to absorb those upfront costs, this probably will not be the most cost effective solution.
Partner With An Organization That Handles International Payroll
Working with a payroll partner is the best way to mitigate potential compliance issues with overseas workers. They will be able to leverage their experience and expertise in order to understand your specific situation.
This knowledge is essential because you have to keep the employment law of both your home country and the worker’s country in mind.
Leverage Powerful Relationships With International Workers – TEEMA
At TEEMA, we understand that people aren’t a product. They’re the backbone of your business. As such, they deserve to be treated well at every step of the process. That’s why our payroll services are designed to make things as easy as possible. We pay workers in their currency of choice, according to their country’s regulations.
If you have a contractor that you would like to pass through a payroll provider, please don’t hesitate to reach out. We’re always happy to help talent and business owners find the perfect match.