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Paying offshore freelancers

Topics relating to managing people and relationships

andyandy

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Hi All,

I have some freelancers who will be working from India. Paypal gives lot of initial pain in setup (past experience). We don't want to use upwork due to recent high costs.
Are there any better legal and preferred ways? Some freelancers mentioned money was transferred from US Bank to Indian bank. How do we document that in accounting that its for a 'freelancer'?

Appreciate input!
 
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G

GuestUserX09

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You could find US based freelancers on Upwork and Fiverr, then message them about taking on projects outside of the platform. It would be more money for both parties.

Also, if you need graphics or writing, you can have local freelancers by posting a flyer or two around local colleges.

If you must use the freelancers in India, then PayPal is pretty much the safest and most effective option. Paypal automatically reports tax information for those who receive over $3,000 in a year I believe. You can easily track your expenses and enter into your own third party accounting.

Don't know what initial setup pain you are referencing. If you link a bank account, I'm pretty sure they can have you up and running in minutes. Maybe a couple of weeks with a "pending clearance" time, but you can call and have that removed or sped up.
 

andyandy

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You could find US based freelancers on Upwork and Fiverr, then message them about taking on projects outside of the platform. It would be more money for both parties.

Also, if you need graphics or writing, you can have local freelancers by posting a flyer or two around local colleges.

If you must use the freelancers in India, then PayPal is pretty much the safest and most effective option. Paypal automatically reports tax information for those who receive over $3,000 in a year I believe. You can easily track your expenses and enter into your own third party accounting.

Don't know what initial setup pain you are referencing. If you link a bank account, I'm pretty sure they can have you up and running in minutes. Maybe a couple of weeks with a "pending clearance" time, but you can call and have that removed or sped up.
Thanks! Paypal was okay from my side but it took lot of time,paperwork on freelancer's side. Eventually we had to switch to upwork. May be some pre-planning will help on freelancer's side
 

illmasterj

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  • If Paypal is an issue for the contractor, the onus is on them to make it easier.
  • They can try and setup Stripe, Braintree, etc.
  • Wire transfer (but depending on what amounts you are transferring may be a large %)
 
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A

Anon38776

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Payoneer is an idea but, likely, a pain to set up. I think they had a service that let companies pay via US transfer. Personally, I only used them to withdraw from PayPal.
 

Ron Dee

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I have 5 freelancers working for me 50+ hrs a week. They all accept PayPal. If located in India it can take several weeks for their account to become verified and/or they need 20 transaction. I just paid their first check divided in 20 amounts, but I think they still have to wait 60 days, still faster than waiting 20 pay periods. As for as I know I am unable to pay them "friends and family" because it's international. I still haven't decided if I am going to cover the papal expenses on my end or not. I would like to as a gesture of good faith as they are very loyal.

Remember as the boss you decide how they get paid. Make it a requirement for them to accept PayPal.

I would be interested in finding a payment solution that allows me to send money without any fees. Not sure if such a service exists.

Sent from my SM-G930V using Tapatalk
 

Leo Hendrix

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Theres also Transferwise but it has limited coverage, Payoneer, Neteller, Skrill.
 
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CostChisel

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I use freelancers direct in India for development and a girl in Latvia for design. Unfortunately, I find the most convenient way for me is via PayPal (not the best for them). I did have one of the Indian guys ask me once if I would be willing to give the money to a relative of his that happened to live in Toronto... same city as me.
 

Clueless Newbie

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Had a question about paying via PayPal.
I live in the US and thinking of hiring an offshore worker. Am I safe to assume that I can deduct these as expenses and not file any/much paperwork with IRS?

I do have a chat with my accountant hopefully next week but any insight would be helpful.
 

Blek

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Hi All,

I have some freelancers who will be working from India. Paypal gives lot of initial pain in setup (past experience). We don't want to use upwork due to recent high costs.
Are there any better legal and preferred ways? Some freelancers mentioned money was transferred from US Bank to Indian bank. How do we document that in accounting that its for a 'freelancer'?

Appreciate input!

If payment is B2B I suggest CurrencyFair (don't know if they operate in India).
Take some time to setup (mostly due anti-terrorist and similar gov regulations) - but It's cheapest and fastest.
 
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WestCoast

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I read all the responses here, and just wonder, why is it so wildly complicated to send money to people in 2021.

So many apps. So many intermediaries.
everyone wants a % just to transfer money from one account to another.

It seems crazy banks don’t have these be painlessly simple. Type in code. Send money without fees and no issues. It’s 2021!

somone here should solve this gigantic problem once and for all! Maaaaasive opportunity
 

Martin.G

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I read all the responses here, and just wonder, why is it so wildly complicated to send money to people in 2021.

So many apps. So many intermediaries.
everyone wants a % just to transfer money from one account to another.

It seems crazy banks don’t have these be painlessly simple. Type in code. Send money without fees and no issues. It’s 2021!

somone here should solve this gigantic problem once and for all! Maaaaasive opportunity

Cryptocurrencies? In Argentina, we have a lot of problems sending and receiving money, and people find the solution in cryptos. Maybe not Bitcoin, because of the high fees and the volatility, but I see so much freelance programmer get paid in DAI for example.

There are problems too with the called stable coins, but at least it's way better that other options. I think the problem is solved, but it has to mature and more people start using it.
 

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