How to Pay Contractors

Freelance contractors are employed by many businesses worldwide for both contract work as well as various labour projects. It used to be the case that most freelancers worked for companies in their own country, but these days more and more companies are hiring workers from other countries due to advancements in online team-based tools.

In this handy article, we will go over the ins and outs of paying contractors and some of the problems that can arise when paying domestic and international freelancers. We will then look at some solutions to those problems and examine how new tools are making it easier and more cost-effective than ever before to keep track of your payments and manage the payroll side of your business.

Paying Local Contractors

Paying contractors in your home country is typically pretty straightforward. You can pay them numerous ways; the best method will, of course, depend on your personal preferences, but generally speaking, here are the options.

1. You can pay them in cash

2. You can pay them by cheque

3. You can pay them by direct deposit

4. You can pay them directly online

If you do decide to pay using an online method, then the traditional options are either an Electronic Funds Transfer, or EFT, or with an Automated Clearing House, or ACH, payment protocol.

Now, if you only have a few contractors in your employ, then the payroll situation can be manageable. The problems start to arise when you have five, ten, twenty, or more employees. In such cases, you may encounter the following issues.

• Obtaining the contractors correct banking information
• Automating the clerical side of things
• Sending out the payments to every worker
• Maintaining accurate records of payments sent and monies owing
• Dealing with payments that don’t go through

Simplypay offers effortless, effective, low-cost solutions to each of the problems mentioned above, all in one simple to use, highly intuitive app. By storing the contractor’s banking info, managing the forms and paperwork, keeping detailed records, and most importantly, promptly sending accurate payments, Simplypay is changing the way that businesses pay their freelancers in all the right ways.

Paying Contractors From Other Countries

As you might suspect, paying international contractors presents several additional challenges, and without the help of an app like Simplypay, you could quickly find yourself in over your head in terms of managing and maintaining payroll records and the sheer amount of paperwork involved.

Some of the most common issues that can occur when paying international contractors include, but are not limited to, the following.

• Paying by cash or with a cheque is seldom an option
• Keeping track of banking information can be tedious
• There can sometimes be a language barrier
• The cost of international wire transfers is high.
• Obtaining and managing tax paperwork can be frustrating

Simplypay has adopted the following best practices to ensure that the above-mentioned problems are a thing of the past and will no longer present any obstacles to you when attempting to pay your international contractors.

1. By using domestic banking networks, Simplypay can bypass the need for costly international wire transfers, saving your business and the contractor a considerable amount of money both in the short and longer term.

2. By keeping track of all your outgoing payments, along with maintaining accurate records of your payroll history, Simplypay makes it easy when tax season comes around because the necessary information required to fill out the forms for each employee is securely stored in one safe place.

3. By removing the language barrier, which generally stems from overly technical banking terminology, Simplypay makes the process of paying and being paid easy to understand for all parties involved.

4. By sending payments promptly, your international contractors will be able to get paid directly to their bank account, often even quicker than traditional direct deposit solutions; This not only inspires confidence in your contractors, but it makes for a more efficient, streamlined payroll process as opposed to other options available on the market.

The truth is that freelancers or other independent contractors are vital to the success of many businesses across the globe. With the advent of web-based payroll tools, like Simplypay, more companies than ever before are onboarding international employees for various essential roles within their companies because many of the problems that prevented them from doing so in the past have now been removed.

If you desire to open your business up to the best and brightest around the globe, then be sure to check out Simplypay. It really is the best way to pay both domestic and foreign contractors in a timely, well-documented manner; best of all, you will save a ton of money and make your life a whole lot easier.

Simplypay — Modernizing bill payments and payables for the next generation of businesses in Canada.

Learn more at: www.simplypay.app