There are many reasons why you may need to hire someone that doesn’t live in the same country as you. Technology has made remote working easier than ever, which means that working with people internationally is now easily accessible. It could be that one of your existing employees has relocated or you simply have found that the best person for the job doesn’t live in the UK. Whatever the reason for having a foreign employee, you’ll be happy to know that paying them doesn’t need to be a stressful or expensive process.
Employing Someone That Works Overseas
The events of 2020 have most certainly introduced remote working to a number of sectors that may not have considered this before. This means that the options for employees to apply for jobs that they are not local to has opened up massively. As an employer, there is absolutely no reason why you shouldn’t consider hiring an employee that lives overseas, but you should get some advice and make sure that you’re covered for everything before you do.
It is worth considering that different countries may have different pay and tax rules and that you should be familiar with these if you’re employing someone from a certain country. You should also research the tax implications for yourself if you’re sending business money out of the country. There is no reason why it can’t all work, but it’s definitely sensible to look into all of the implications first so you can ensure that you approach it all correctly.
Paying Your Employees
The good news is that when it comes to actually making the payment, there are different options open to you. This is great news because it means that there is likely to be something that suits you and your needs perfectly.
1. Payment Via Bank Transfer
If you have employees in the UK then the chances are you pay them via a BACS bank transfer. Although this can be a method to pay people that live and work abroad, it isn’t always the most cost-effective. Banks can charge for sending money abroad and you may even find that your employee has to pay to receive money in a different currency. If you do wish to use this method then make sure you research it thoroughly so you know what you are getting into first.
2. Payment Via Money Transfer
It’s important that your employee gets paid on time, so consider using an international wire transfer service to send money fast. Money transfer services often have much lower fees than traditional bank transfers, but can sometimes have a fee attached. Just make sure you research this thoroughly so that you know what you are likely to be charged – it often works out better if you can send bigger payments less often, but that is something you’ll need to work out between you and your employee.
3. Payment Using an E-Wallet
Services such as PayPal are a popular way to send money – but unless you use the “friends and family” option there will be a fee chargeable. You can opt to pay this fee yourself, or your employee can take the hit on the money they receive. PayPal transfers are usually instant but it’s worth bearing in mind that both parties will need to have a PayPal account and that money transferred will go into this account, the person receiving the money will then need to withdraw it to their bank account.
What Should You Watch Out For?
As with any payment sent, the person receiving it probably wants to receive the money quickly. When you are paying someone’s wages this is even more important. Whatever method you choose to use when it comes to paying your employees, you should make sure that you take steps to make sure they are paid on time.
Always be aware of fees and whether the person on the other end is likely to be charged. If you’re paying someone’s wages and they receive less than they expected due to fees they’re probably not going to be very happy.
The good news is that paying foreign employees overseas doesn’t need to be hard work, or expensive. You just need to do a little research into the methods available and work out what is going to be the best, long-term method for you and your business. It is worth talking to your employee in advance about their expectations around pay, as they may even have a preferred way to be paid that can help avoid you having to do too much research.