Remote working is becoming increasingly popular each year, thanks to technological advances that have made it easier for employees to stay connected and work from anywhere.
With the rise of cloud-based applications and collaboration tools, employees can work together on projects, even when they're not in the exact physical location. The current trend in remote working shows that more people are adopting the remote work model. In fact, a report by Growmotely showed around 74% of working professionals believe that remote work will become the new normal.
The ongoing trend is fueled by the internet and technology, making it possible for organizations to hire a remote workforce from anywhere in the world. This trend is likely to continue as remote work benefits become more apparent.
Is Remote Working Effective?
There are several advantages to remote working for businesses. Here are a few you can consider:
- One of the most apparent benefits is the cost savings associated with renting an office space.
On the other hand, employees don't have to travel long distances to get to their offices, which adds to their working hours and creates working capacity. 61% of workers say their lives outside the office improve since they can save on overheads and attend to family life.
- Another advantage is that it leads to a more productive workforce. Studies have shown that employees who work from home are more effective than those who work from an office.
Studies have shown that employees who work from home are 47% more effective than those who work in an office.
Such a setup ensures they have more control over their environment and can create a conducive space to enhance concentration and productivity. Despite the challenges of remote working, it has continued to be a favorable arrangement for businesses.
- Remote working and happiness quotients are interrelated. 91% of employees feel they can have an appropriate work-life balance when they work remotely. The option of working remotely adds to their level of happiness.
With the right policies and procedures in place, companies can harness the power of remote working and use it to drive productivity, revenue, and customer/employee satisfaction levels.
The Process of Paying Remote Workers
Remote hiring might not be challenging, but paying them on time might bring another set of issues. To make the most out of this working model, you need to develop a convenient payment model to ensure you get the right motivation and productivity levels from your employees.
1) Manage Employee Salaries via a Home-Country Payroll
When an employer hires a remote worker, the employee must be on the home-country payroll. This model allows the employer to withhold the appropriate taxes and social security contributions from the employee's pay. It also ensures that the employee abides by the home country's labor laws and government rules.
2) Work With Local Partners to Pay Remote Workers Salaries
If you have a remote worker paid in a foreign currency, you may need to use a local partner to pay your employee. You can continue paying employees in foreign currency to make the most out of the situation.
However, foreign exchange rates can shrink your profits, mainly if you use a different currency. It's a good idea to use a local partner to pay them. Working with a local partner opens your company to hire some of the best workers worldwide.
3) Outsource your Payroll or EOR Provider
An outsourced payroll or EOR provider provides payroll and employee-related services to businesses. These services include but are not limited to payroll processing, tax filing, employee benefits administration, and compliance with labor laws.
Outsourcing these services can save businesses time and money, as they do not have to dedicate in-house resources to these tasks.
How Do Foreign Countries Pay Remote Workers in India?
It can be tricky to stay on top of things if you don't live in India or the same country as your employee. Here are a couple of options to consider when it comes to paying workers in India:
1) Open a Legal Entity in the Employees' Country
When businesses expand in India, they can choose to operate by establishing a legal entity in the country where their employees reside. Such an arrangement makes it easier for the business to comply with local laws and regulations and possibly take advantage of local tax incentives to sustain their business in the local markets.
2) Work With a Global Employment Partner
Foreign businesses can pay their remote employees in India in a few different ways. One option is to work with a global employment partner. Such employment agencies are familiar with all the payroll and tax implications essential for hiring employees in India. They can also help align the company's compliance with Indian labor laws.
3) Pay Workers as Contractors
Many foreign businesses choose to pay their remote employees in India as contractors. This allows companies to avoid paying taxes on wages and any legal liabilities that might come with employing workers in India. Additionally, paying workers as contractors gives businesses more flexibility regarding how much they pay their employees and how often they make payments.
The Tax Situation in India
The tax situation in India is quite complex, with several different tax rates and types. The central government levies several taxes, including income tax, corporation tax, and excise duty.
There are also other types of taxes imposed on different income types. For example, salary income is taxed differently than income from investments. The main components of India's salary include basic salaries, allowances, and perquisites. The basic salary is the most critical component of the wage and is fully taxable. The allowances are also fully taxable but are not as important as the basic salary. State governments also levy taxes, including value-added tax and stamp duty. Several tax exemptions and concessions are available, and the tax system is constantly changing.
Tools You Can Use to Pay Your Remote Workers
As a business owner, it's essential to have systems and processes to focus on what you're good at and delegate the rest. Plenty of services can take care of all the details for you.
Here are some of the best ones available in the market:
Deel is a payroll service that offers a simple, fast, and affordable way for businesses to manage their payroll. You can easily connect your accounting software to Deel and let the portal handle the rest. Deel offers a variety of features to help businesses manage their payroll, including direct deposit, tax filing, and employee self-service.
Razorpay is a leading payroll service provider in India, as it helps businesses streamline their payroll processes and stay compliant with statutory regulations. They offer a suite of payroll services, including payroll processing, tax filing, and employee self-service. Additionally, their platform offers robust features and integrations that make it easy for businesses to manage payroll operations.
Quandle offers a comprehensive payroll management service that helps businesses keep track of employee compensation and benefits. Their services are designed to help companies save time and money and to ensure compliance with all applicable laws and regulations.
Zoho offers a payroll service that is simple to use and helps businesses manage their payroll needs. The service is available online, and can access it from any device. With Zoho, you can easily calculate payroll, generate payslips, and manage employee leave and tax deductions. The portal also offers a mobile app to access your payroll information on the go. Their service is affordable and provides a free trial.
Beehive offers a full suite of payroll services to save you time and money. From online payroll and direct deposit to tax filing and payroll reporting, they have everything you need to run your business smoothly. Since they are a web-based service, you can access your account anytime, anywhere.
How Does inai Help You With Payroll Processing?
inai, as a cross-payment aggregator platform, makes connecting your existing accounts with leading payrolls online easier. Our platform is poised at helping EOR and payroll companies make payments across borders without incurring heavy foregin exchange conversion and transaction costs.
Since our platform integrates seamlessly with payment gateways, you can make automatic payments to your remote workers in a matter of minutes without going through endless administrative tasks or mundane tasks. You can perform faster KYC/KYB process for international payments through inai connect to ensure there are no bottlenecks while making paying your employees.
At inai, you can enjoy the best of sending and receiving payments without worrying about soaring costs and high transaction fees.