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Your global workforce can work anywhere in the world, so it makes sense to use an online currency specialist that lets you pay your international employees from anywhere.
Digitalization and a world without borders mean that businesses now have a wider talent pool to fish from. The benefits of hiring remote workers are fantastic. From increased diversity and innovation to better customer service and cost savings, it’s all about keeping your business flexible and agile.
Talking about flexibility and agility, it’s also important to consider how to pay remote workers living abroad. One thing is for certain: for many businesses, the best way to pay international employees needs to be quick, easy, and cost-effective.
Choosing a suitable payment method for overseas employees benefits the business and keeps employees happy. It’s a win-win when you have a fast, cost-effective way to pay remote workers. Let’s consider your options.
An online specialist payment service provider like MTFX is the first option to consider if you want a simple and easy way to pay wages to overseas employees. The pros outweigh the cons by far.
Your business can outsource employer services such as payroll services, tax administration, and other essential HR functions to a professional employer organization (PEO) or employer of record (EOR).
Setting up a local legal entity is viable if you’re looking to rapidly expand and hire a large workforce in another country.
Besides figuring out how to pay international employees, there are other considerations, such as complying with tax and labor laws and adhering to immigration requirements.
If you’re a Canadian business hiring Canadian citizens, tax obligations for both parties may differ from hiring employees that are not Canadian citizens. This is because Canadian citizens working abroad are protected from double taxation if there’s a tax treaty.
Some businesses choose to hire talent on a freelance or contract basis, in which case, it’s important to classify your employees correctly to avoid penalties. In any case, consider working with a qualified tax professional who understands the tax obligations of the foreign jurisdiction where your employees work.
A Canadian company paying overseas employees also needs to consider how the employees prefer to be paid. Canadian dollars or local currency? Employees may choose to be paid in the local currency to avoid shouldering the risk of currency fluctuations, which can affect the value of the salary package.
On the other hand, employees may choose to be paid in CAD under special circumstances. For example, an expatriate employee might prefer being paid in CAD because they have mortgage payments or savings contributions to make back home.
Therefore, the question of whether to pay international employees in CAD or the local currency boils down to whatever works for your organization and employees. Whoever agrees to shoulder the currency risk has to figure out how to minimize the uncertainties of exchange rate fluctuations to protect income or profits.
Unfortunately, exchange rate fluctuations happen, and they’re unpredictable. Adverse currency movements can result in your international employee receiving less money due to currency conversion losses.
You may also have to pay more to ensure your employees get the correct amount. Whether you’re paying employees in CAD or local currency, one party has two monitor fluctuations in the exchange rate, making the situation more complex.
Fortunately, dealing with exchange rate fluctuations can be easier when working with a specialist foreign exchange service that gives you access to expert guidance and risk management tools.
If you’re wondering how to pay international employees without paying huge fees, a currency specialist like MTFX could be the right solution for your business. Whether you want to make large transfers to many international employees or set up regular, automated payments, we can support your business needs.
Your business account provides access to competitive exchange rates and low transfer fees. We always use mid-market rates with no hidden charges.
In addition, MTFX offers expert guidance from dedicated currency specialists that assist in leveraging various tools, such as multi-currency accounts, exchange rate trackers, and forward contracts to make the most of your money.
Paying your international employees online is quick and easy with MTFX.
Step 1: Open an account in less than five minutes and add funds via bill payment or bank transfer.
Step 2: Book a great rate to pay employees around the world in 100+ currencies.
Step 3: Provide the required information and make your payment. We’ll do the rest by delivering funds in 24-48 hours or the same day for express payments. You’ll be able to track your transfer online.
Open an account today and enjoy competitive exchange rates, low transfer fees, and quick, easy international money transfers.
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