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Payroll management for foreign workers can be difficult, with obstacles ranging from cross-border payment limits to local labor rules.
However, companies may minimize administrative expenses and guarantee timely and compliant payments with the correct payroll solutions.
We will look at how to pay international employees efficiently in this article, taking into account important factors including exchange rates, compliance, and payroll systems that make managing a worldwide workforce easier.
International payroll challenges
It takes more than just transferring money to pay foreign workers; it also involves maintaining compliance, controlling exchange rates, and making sure workers are paid accurately and on schedule.
What you should know is this:
Compliance – Local laws
- Every country has unique labor laws, tax rules, and required benefits.
- Some mandate that salaries be paid in local currency or come with obligatory benefits like pensions and health insurance.
- Legal problems and fines may result from noncompliance; working with a knowledgeable payroll provider can help.
Currency Exchange – handling fluctuations
- Paying in local currency makes life easier for employees but exposes businesses to exchange rate risks.
- Sudden currency shifts can increase payroll costs unexpectedly.
- Reduce risks by locking in exchange rates, using multi-currency payroll providers, or setting clear payment policies.
Payment methods for international employees
This is the section where we respond to how to pay international employees. Your choice on how you do it further. Yet, your worldwide workforce’s preferred payment method will rely on many factors, including cost, convenience of administration, and compliance.
These are a few of the most well-liked choices:
Employer of Record (EOR)
- A third-party service that legally employs workers on your behalf.
- Handles payroll, taxes, benefits, and compliance, making it easier to hire abroad.
- Best for companies expanding quickly without setting up local entities.
International Payroll Providers
- Specialized services that manage multi-country payroll and compliance.
- Streamline salary payments, tax withholding, and reporting.
- Ideal for businesses with employees in multiple locations.
Bank Transfers
- Direct wire transfers to employee accounts.
- It can be costly due to fees and currency conversion rates.
- Works well for occasional payments but lacks built-in compliance support.
Payment Platforms (e.g., PayPal, Wise, Payoneer)
- Digital payment services that offer fast transactions in multiple currencies.
- More affordable than bank transfers but may have withdrawal fees.
- Best suited for freelancers and contractors.
Keeping employees on home payroll
- Works overseas on temporary tasks.
- Streamlines administration; however, it might not adhere to regional tax regulations.
- Not appropriate for long-term foreign employees.
Best payroll platforms for international employees
Payroll management in several nations may easily turn into a nightmare due to tax complications, shifting exchange rates, and compliance problems that take up time and money. International payroll platforms can help with that.
These platforms simplify global employee payments by:
- Automating payments – ensuring employees are paid accurately and on time.
- Handling compliance – staying on top of local tax laws and labor regulations.
- Managing multi-currency payments – reducing the hassle of exchange rate fluctuations.
- Offering centralized tracking – keeping all payroll data in one easy-to-access system.
By choosing the right payroll platform, businesses can expand globally without worrying about compliance risks or payroll bottlenecks. Up next, we’ll explore some of the best solutions available.
Deel
Paying international contractors or employees can be a headache – tax rules, compliance, and payment methods all vary, and one small mistake can cause big problems.
Deel Free Demo & HR Version
That’s where Deel comes in. It makes global employee payments effortless, so you can hire, pay, and stay compliant in 100+ countries, without the stress. Whether it’s full-time employees or freelancers, Deel handles the tricky parts, so you can focus on growing your business.
Why businesses love Deel
- No Need for a Local Entity – Deel acts as the employer on your behalf, so you can hire globally without setting up legal entities.
- Stress-Free Compliance – They handle taxes, labor laws, and contracts to keep you compliant everywhere.
- Multiple Payment Options – Pay in multiple currencies, via bank transfer, PayPal, Wise, and more.
- Fast & Reliable Payments – Contractors get paid in minutes, not days, in many cases.
- Self-Serve Onboarding – Contractors and employees can onboard themselves, saving you time.
- Automatic Tax Forms – No more scrambling for tax documents; Deel generates them for you.
How to pay international employees with Deel
Paying your team through Deel is as easy as a few clicks. Here’s how it works:
- Sign up & set up your team – Invite your employees or contractors to Deel.
- Choose a contract type – Deel provides pre-vetted, country-compliant contracts.
- Add payment details – Select your preferred payment method and currency.
- Approve invoices – Contractors submit invoices through Deel; for employees, payroll runs automatically.
- Click “Pay” – Deel handles everything from tax deductions to currency conversions.
That’s it! No paperwork, no compliance headaches; just simple, seamless payments.
- Takes care of compliance and taxes for you
- Easy to use, even for non-HR experts
- Works in 100+ countries
- Fast payments in multiple currencies
- Employer of Record (EOR) services can be expensive for smaller businesses
- Limited customization for employee benefits compared to local providers
- Exchange rate fluctuations can sometimes affect final payout amounts
Deel Pricing
Deel’s pricing is flexible, covering everything from contractor payments to full payroll management in 150+ countries:
- Contractors – from $49/month
- Employer of Record (EOR) – from $599/month
- Global Payroll – from $29/employee/month
- US Payroll – from $19/employee/month
- US PEO – from $85/employee/month
Transparent and scalable, Deel’s pricing makes it a solid choice whether you’re a startup hiring your first international contractor or a large company managing a global team.
Remote
For companies wishing to engage, compensate, and oversee foreign workers and contractors, Remote offers a feature-rich platform. With services in 193 countries, it streamlines HR, payroll, and compliance duties globally, allowing businesses to grow without facing administrative or legal challenges.
Key Features
- Employer of Record (EOR) – Employ overseas workers without establishing a local establishment.
- Global Payroll – Automate the processing of payroll in a variety of currencies with precise and legal payments.
- Contractor Management – Seamlessly pay and manage international contractors while ensuring compliance.
- Tax & Compliance Support – Remote handles tax filings, benefits, and local labor laws for you.
- Onboarding & HR Tools – Integrated hiring, expense management, and benefits administration.
How to pay contractors with Remote
Let’s see how easy or not it is to pay your contractors with Remote:
Invoicing & Approval
- Contractors submit invoices → You review & approve them in Contractor Invoices.
- Remote issues a payment request → You make one payment → Remote pays the contractors.
- Automatic payments are available.
Payment Methods (Optional but recommended for faster processing)
- SEPA Direct Debit | ACH Direct Debit | Credit/Debit Card
Paying Invoices
- Approve invoices in Contractor Invoices → Select payment method → Click Approve and Pay.
- Bank transfer: Payment details are generated → Transfer funds manually.
Payment Processing Time
- Bank Transfer: 2–6 business days
- ACH/SEPA: 6–9 business days
- Cards: 2–4 business days
Once Remote receives your payment, it processes payouts to contractors.
Pros
- Handles payroll, tax compliance, and benefits
- Offers automation for payments and HR tasks
- No need for local entities to hire internationally
- Transparent pricing with no hidden fees
- Pricing can be higher than other payroll services
- Some features are only available in select countries
- Can be overly complex for businesses hiring just a few contractors
Remote pricing overview
Remote follows a transparent pricing model with different plans for hiring international employees, managing contractors, and running payroll.
- Employer of Record (EOR): Starts at $599 per employee per month
- Contractor Management: $29 per contractor per month
- Payroll – $29/employee/month
- Enterprise – Custom pricing
Start with Remote for Free!
For businesses scaling globally, Remote offers a cost-effective way to ensure payroll compliance while minimizing administrative work.
Gusto
Gusto simplifies foreign contractor payments; there are no hidden costs or difficult regulatory issues. Using the same platform you use for your U.S. payroll, you can pay contractors in their local currency with integrated tax and onboarding support.
Top Features
- Seamless international payments – Pay contractors in their home currency with a single click.
- No per-contractor fees – Unlike many competitors, Gusto doesn’t charge a monthly fee for each contractor.
- Built-in compliance support – Helps you stay compliant with tax regulations and reporting.
- All-in-one payroll platform – Manage payments for both U.S. employees and international contractors in one place.
- Contractor self-onboarding – Contractors can enter their own payment details, reducing admin work.
How to pay with Gusto
Gusto makes paying non-US contractors easy and seamlessly integrates with your payroll system. This is how it works:
- Add Your Contractor – Enter their details, and Gusto will invite them to complete their profile.
- Contractor Onboarding – They provide banking details and fill out necessary tax forms (W-8 BEN or W-8 BEN(E)).
- Set Up Payments – Choose a one-time or recurring payment schedule.
- Approve and Pay – Payments are processed in 5-10 business days.
- View Exchange Rates – Gusto displays real-time exchange rates before you submit a payment.
With Gusto, you handle everything from one dashboard; no need for extra payment tools!
- No per-contractor monthly fees
- Manage U.S. and international payroll from one platform.
- Helps contractors fill out required forms like W-8 BEN.
- Recurring payments
- Limited country coverage
- International transfers can take 5-10 business days.
- You must have a U.S.-based contractor or employee onboarded first.
- Exchange rates may include additional costs compared to mid-market rates
Gusto pricing overview
Gusto provides customizable pricing options with no hidden costs that are suited to various business requirements. A free account is available at first, and you just have to pay for the services you utilize.
- Simple – $49/month + $6 per person
- Plus – $60/month (with discount) + $9 per person
- Premium – $135/month (with discount) + $16.50 per person
- Contractor Only – $0/month for 6 months + $6 per person
No long-term contracts, cancel anytime.
Final Conclusions
To wrap it up, if you are wondering how to pay international employees, handling contractor payments and foreign payroll doesn’t have to be difficult. Deel, Remote, and Gusto provide user-friendly payroll solutions that ease the payments process, benefits, and compliance in several nations.
These systems save you time and streamline the process, whether you’re working with full-time staff or contractors.
Having a payroll solutions allow you to grow your business internationally without any hassles because of their user-friendly features, flexible pricing, and committed support.
Are you prepared to begin? Make your international payroll journey simple by getting in touch for a demo or consultation!
