The 5 Best Ways to Pay International Contractors and Employees Abroad

Carol Amegatcher

Carol Amegatcher

5 min read


The 5 Best Ways to Pay International Contractors and Employees Abroad

Paying your international contractors and employees properly plays a role in retaining talent in your business or organization. Paying international contractors and employees could be quite a daunting task, so we have listed ways to help you pay your international contractors and employees with ease.

paying international employees


Make cross-border payroll simple and manage your payroll seamlessly. RemoteTeam has powerful features for working with independent contractors. RemoteTeam makes it easy to pay international contractors and employees. It has an all-in-one platform that integrates compliance, contracts, payment options, time tracking, and a lot more. With RemoteTeam’s Payments and Transfer system, you can save time, money, and reputation by paying your contractors and employees on time, select the best option for your payment needs and reduce transfer costs. 


wiseWise is a cheap and fast way to send money to people abroad. With Wise, you always get the real exchange rate when you send money to over 70 countries. Wise has a free multi-currency account that allows employers to hold over 50 currencies at once and convert them at the real rate when they want.

International Wire Transfer

Employers can use International Wire Transfer to pay their international contractors and employees. Using this payment system helps you get a better exchange rate and ensures you can pay your international contractors and employees as quickly as possible.



Paypal is another way employers can pay their international employees and contractors. It is a means to send and receive payments. When you make payments with Paypal, all your funding sources are protected. An advantage of using Paypal is that when you send money, the receiver only sees your name, email address, and shipping address.


Xoom is a PayPal service, whereby employers can send money to their employees and contractors abroad. With Xoom, you get to stay abreast with text updates, email notifications, online access, and have access to a support team that works 24/7. When transferring money to recipients, you will see the exact fees and the total amount your international employees and contractors will receive. Xoom operates secured transactions and does not share financial information. They have an encryption and fraud monitor to protect your transactions.

Mercury Bank

Mercury bank is banking built for e-commerce. You can connect seamlessly with every US payment processor. It also allows you to make payments wherever you want to. To be eligible for a Mercury account, you will need to have a company formed and registered in the United States. You need to have a federal EIN (Employer Identification Number), your company’s documents of incorporation, and a picture of your passport.

Paying international contractors 1099

A 1099 form is a form by the Internal Revenue Service (IRS) and is used to document tax that has been filed by a business entity or an individual that paid during the tax year. Normally, contractors are paid as contractors 1099. Business entities can pay their contractors either by check or wire transfer, especially when they are international contractors.

International Independent Contractor Agreement

An independent contractor is, in other words, a person who is their own boss, who does contract-based work with an individual or business for a period of time. An independent contractor provides services or products for the said parties they are in contract with, and in exchange, get compensated for it. An independent contractor works according to their own schedule. They retain economic independence, and moreover, control how their services are rendered. They also use their own tools to perform their services.

Contracts agreements are essential for a company and contractors. The contract agreement includes the designated salary, job description, and duration of work. It may also include termination procedures and provisions. According to the Internal Revenue Service (IRS), the business entity or client will not be held accountable for tax withholdings. Unless the contractor is a lawyer, accountant, or equivalent, the independent contractor is paid as and when the job is done, and not on an hourly basis.


Most importantly, ensure your contractors are actually contractors and that they have passed all the tests they need to before entering any form of agreement with them.

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Carol Amegatcher
Written by Carol Amegatcher

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