How to Hire Remote Workers for Your Business

Remote workers are a permanent part of the traditional workforce globally. The COVID-19 pandemic forced a huge percentage of workers to go home where they could still work remotely. Companies have now witnessed that a remote workforce is possible and beneficial. It is now possible to open local brands to the globe and hire the best talent overseas. Below, we discuss the things you should consider when hiring remote workers. 

Benefits of Hiring a Remote Workforce

When it came to hiring for vacant positions, companies were limited by their geographical location. Businesses used to hire people who live close to the facilities. These days, companies expand their talent pool from the local area to anywhere around the globe. Remote work is intentionally inclusive, and it allows companies to also recruit candidates with different disabilities. 

Considerations When Hiring a Remote Workforce

Hiring remote workers can be easy for companies. However, transitioning to a workplace that is ready to embrace remote workers may take time. International borders matter, especially when you are handling the payroll for multiple countries, abiding by different sets of employment laws, and paying taxes. Some aspects of hiring remote workers can be complex, especially if you’re hiring for the first time. You may also consider using a recruitment tool or partnering with an HR firm to do the heavy lifting for you. 

Managing Payroll

If you have a small business with minimal accounting resources, payroll can be frustrating. When hiring across borders, handling payroll can cause conflict with local laws. Freelancers or independent contractors are usually self-employed, so they handle their own taxes. As an employer, you do not have to withhold payroll taxes from their payment. 

Taxes for Contractors

For US-based freelancers there are still two steps your company needs to take. 

1. Request the contractor to fill out a W-9 form. The information required on the form is the worker’s ID number and certification. This info is needed to fill out the second step.

2. Fill out a 1099 form for each freelancer you paid over $600 in the year. This form tells the IRS the amount you paid to members of your team in non-employee compensation. You will send a copy to the freelancer and another to the IRS.

Calculating Compensation

Questions to ask yourself regarding compensation include: 

• Do you have to pay remote workers the same rate as a local worker?

• What is a fair rate for their country?

• What is their country’s cost of living?

• What benefits are they expecting?

• What would be considered competitive pay? 

You only have a few options when doing all these calculations. Finding a balance may be tricky.

Endnote

Hiring remote workers for the first time can be intimidating, especially for those who are located overseas. However, nothing can compare to the benefits your company will get from hiring remote employees. If you have not hired from the global pool of highly qualified remote employees in your business, you might want to reconsider. Follow the above steps and you’ll be on your way to lowering your operational cost and reaping the benefits of working with remote employees.