Ask IH: How are you paying employees located in other countries?
So this question is to fellow IH who have remote staff in other countries.
How are you paying them today? Are you treating them as "independent contractors" and having them take care of their own taxation in their home country? If so, have you made them setup their own business to invoice you?
If not, are you properly setting up a business in the home country of the employee to take care of payroll liabilities etc?
There are many ways to skin this cat, but I am curious as to what IHers are doing. I've been lucky in having all my current staff in the same country (albeit different regions) which has been easy. But we are in the midst of hiring a few new people who aren't, and I am weighing the PROS and CONS of both avenues while debating with my professional services people (accountant mostly) on what the right approach should be long term.
If possible, please list which country your HQ is at. I am wondering if that comes into play as well.
(Note to self... Never write a post on IH on a Friday night if you want visibly)
OH ya.... Bump.
Our company is registered in Estonia and all of our employees are on the books as contractors. Our contractors could register in their own countries as businesses, but don't need to. We're allowed to receive invoices from persons as well as companies.
We pay most of our staff by either bank transfer or through Payoneer (which has our preference, since the fees are often a lot lower). We also have a few contractors who are still working for us through Upwork; they get paid by Paypal.
Estonian rules and regulations make all of this pretty effortless to be honest. Paying staff is not nearly as big a headache as receiving money from our customers lol.
Thanks for sharing.