How to Pay International and Remote Employees in Uganda: All You Need to Know

With so many businesses adopting remote or hybrid models, it has also meant that the workforce has become increasingly global. As a result, paying individual employees abroad and handling payroll have become more complex. In this article, we will make this process a little clearer for you.

For example, withholding tax laws in Uganda apply to employment income for remote employees in Uganda. The employment income includes allowances, salary, and other benefits. The employer deducts the income tax on these payments (PAYE). Using bank transfers is easy, but it may not be the most convenient way to abide by tax regulations for you and your remote employees.

So let’s go through some important bits

How does a poor remote work pay policy affect employees?

A poor remote work pay policy can drastically affects your in-house, hybrid and remote employees. Regardless of how employees work, their camaraderie and casual catch-ups will involve discussions around salaries and benefits.

If your in-house employee senses that there is a certain bias for remote workers and vice versa, this may lead to extreme dissatisfaction. And with the rising cost of hiring talent, this would add a huge load onto your hiring budgets. Also, without a strategic way to ensure salaries and benefits are paid across remote and in-house teams, your managers may have poor or no direction in disbursing and negotiating salaries.?

This may lead to: ? Low morale ? Employee dissatisfaction ? Feelings of workplace injustice ? Strain on peer relationship arising out of pay inequity ? Lower productivity ? Promotion inequality

Questions to ask yourself to form a remote work pay?policy

You need to be sure of the following aspects when planning a remote work pay policy. ? Should we pay remote workers based on their location? ? Should the policy cover expenses about workplace equipment? ? What are my payment options? ? Do we have the expertise to manage payroll laws and expectations worldwide? ? How do we manage benefits for remote workers?

Which Currency Should You Use to Pay Remote Employees?

If both the employee and employer aren’t present in the same country, the latter can pay their remote workers in the local currency. The added effort is only required when employees are in a different country from the employer.

Here is where employers need to be mindful of a few things. Employment laws in Indonesia, and Vietnam regulate employers to pay in their remote worker’s currency.

Some countries allow employers to decide the terms of payment concerning currencies. If the employment contract stipulates that the remote employee will receive the payment in their local currency, employers must be aware of the foreign currency’s volatility. Foreign currency exchanges are prone to fluctuations and can cause your employee to lose money. This can contribute to employee dissatisfaction in the long run, especially in a remote setting, and can cause deep distrust and envy.

5 efficient Ways to Pay Your Remote Workers

By now, you’d probably be wondering, “Is the stress and hassle of hiring a remote team still worth it?” The answer: Yes. Several solutions to payroll and compliance are available?—?with multiple options for you to choose from?—?but the skillsets of the global talent pool are irreplaceable. Here are four ways with which you can confidently pay remote employees.

Fortunately, there are several methods you can explore when it comes to administering payroll and ensuring that remote employees in Uganda are paid on time. They include the following:

1. Bingtellar

This is a global payment processing platform that is not just about speed; it’s also about affordability and ease of use, with various features to make paying wages to overseas employees simple and easy. Web3 employers can seamlessly utilize Stablecoins to pay their remote workforce, ensuring employees receive Ugandan Shilling directly into their bank accounts or mobile wallets. Plus, with minimal fees for international transactions, Bingtellar prides itself on transparency and zero hidden charges.

Here’s why Employeers love using Bingtellar:

? Lightning-fast global payments: Say goodbye to delays.

? Budget-friendly international fees: Competitive rates and no surprises. ? Global access: Make payments from anywhere, hassle-free.

? Extensive reach: With support for over 150 countries worldwide, Bingtellar is a global solution that offers local convenience for global contractors.

?? Learn more about how Bingtellar is helping international contractors and teams make and receive international payments by clicking here

2. TransferWise

Wise is undoubtedly one of the popular ways to pay remote employees in Uganda. The most significant advantages of using TransferWise to pay remote employees in Uganda and other countries are low transaction fees and great exchange rates. You can use TransferWise to transfer as much as $1,000,000 in a single transaction as an employer.

Ensure that you and your remote employee open a free account, connect it to a valid bank account and proceed to verify your identity. Afterwards, you can log in and initiate the payment.

3. PayPal? You’ve probably heard of PayPal, the world’s most popular online payment platform. When remote employees in Uganda receive their payments on their PayPal accounts, they can transfer them to their bank accounts or phones via MTN MoMo. The remote employees will pay a transaction fee to transfer the funds from their PayPal accounts to their respective bank accounts. But be aware that it might be difficult for recipient to get funds settled in their bank account, sometimes days.

4. Payoneer Payoneer is another option for paying international employees, especially foreign contractors. Payoneer offers multi-currency accounts, manages requested payments, and other features that could potentially streamline payroll. However, exchange rates and additional fees may make Payoneer a less feasible option compared to others.

5. Partner up with a local business When paying remote employees in Uganda, you can also outsource the payment process to a Ugandan company. However, you will be responsible for their compliance for the duration of their employment with you.

Partnering with local businesses enables companies to scale faster and build their footprint in new markets without opening their own branches. Companies will work with an established local business, leveraging their employee recruitment and payroll resources if they do not have a subsidiary present.

Remember:

It’s your responsibility as an employer to ensure your remote employees in Uganda receive timely payments in compliance with the laws and regulations. Therefore, always discuss the most appropriate payment method available with your remote employees that also suits your company’s needs.

So if you’re looking for the most stress-free way to pay your remote team outsourcing payments etc to a third-party payment provider, Bingtellar is the way to go.

We are happy to guide and support you through your global journey, talk to us today via email [email protected]