How To Pay Your Freelance and Remote Employees Efficiently

As of late, working from home or managing remote employees is the new norm. For other businesses, this transition may have been an easy one. However, for others, it’s an entirely new adjustment to make.

Businesses that aren’t used to the remote working arrangement have to go through big changes with all aspects of their operations. Hence, a brand-new challenge in terms of management.

The key to successfully manage remote workers is to develop good communication with them.  This includes keeping the employees up-to-date with all the necessary correspondence of the business. It also means paying your employees properly and on time.

There are many ways for you to ensure that you’re able to pay your employees or freelancers’ wages accurately, even on a remote working arrangement. Here’s how:

  1. Set Up An Account With Online Payment Portals To Banks

Since more businesses are now shifting to the online work environment, online payment portals are also becoming more popular. That way, paying freelancers can now be made directly from your local location to their respective local banks.

Because you’ll be doing regular money transfers, it’s important that you’ll window-shop among the various options available. That way, you can partner in the long term with a payment portal or website that can give you the most competitive rate.

This includes factoring in the following expenses related to the payment of wages for remote workers:

  • Differences in tax rates
  • Payment per transaction
  • Foreign exchange rate
  1. Define Who Your Employees Are

Different kinds of employees will each have different payment forms. So, this is also something you’ll have to look into.

You can start by defining who your employees are, taking into consideration the different roles that each perform for your business. That way, you can make a uniform ascertainment as to the rate you’ll pay your remote employees. For instance, some may be paid hourly while others on a per submission basis.

Some of the questions you may need to answer include:

  • Are the employees paid a guaranteed wage?
  • Are the employees candidates for medical insurance, vacation pay, or retirement contributions, and other employment benefits?
  • Shall the employees be reimbursed for any out-of-pocket expenses they incur?
  1. Consider The Differences Attributed To Location

When it comes to handling remote workers, one of the challenges employers will meet is the need to balance out the differences attributed to location. How are you going to determine the base rate of employees? For instance, those working from the Philippines have a different minimum wage requirement from employees in Australia.

Apart from the base pay, there are also other differences you’ll have to consider, such as the paid leaves or holidays. For example, there are 21 national public holidays in India. In Japan, however, there are 15 national public holidays. So, do you give the Indian employees 21 paid holidays and only 15 for the Japanese? Or, do you set an average number of uniform paid holidays for everyone in the team.

These questions will shape the payroll system of your remote workers.

  1. Set Parameters For Performance Evaluation

The performance appraisal of employees isn’t limited to the key performance indicators, like profit and sales targets, but it can also be associated with how employees are capable of leadership and how well they perform their tasks.

As you determine the monthly wages of each of your employees, evaluating the potential of an employee appropriately is important. An appraisal should help you identify how a given employee is performing and how to improve them.

For instance:

  • A remote, task worker can be compensated based on the overall quality of their output;
  • A remote worker that’s part of a larger, management team, will be evaluated based on overall team contribution.
  1. Set Up A Time Tracking System For Your Employees

Since your employees are now working remotely, there’s that added challenge of ensuring that everyone on board is still productive. This can be achieved by having a time tracking system for all of your employees.

This can help smoothen out any irregularities or questions that your employees may have regarding their wages. More so, it creates a sense of office environment, whereby your employees are performing online tasks related to their job during the hours they’re online.


As you can see, if you want to keep your team happy and working well together, a couple of management tips for remote employees are important. This includes, among all others, the paying of their wages.

With these tips, you can find the perfect balance between providing your employees with everything they need but also keeping your relationship with them running smoothly. Remember that when your employees are paid well, they also contribute more to your company, making it a win-win situation.


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