Hiring Employees in Mexico: US Guide
Explore the process of hiring employees in Mexico to successfully navigate the legal and cultural considerations when expanding your workforce across borders!
Making payments to independent contractors can often be easier compared to paying regular employees as you don’t withhold tax for them or need to figure out benefits.
Contractors usually have their preferred methods for receiving their wages. Services like Wise Business and Payoneer are some of the most popular ones as they're easy and cost-effective.
But are these services also a good choice for employers? Let’s find out!
You may be considering using a bank to pay your independent contractors overseas, as it's the most traditional service out there. But here's a quick heads up on the fees and how money transfer services can save you a few bucks.
The average cost to send funds overseas using traditional banks range from 3 - 4% of the amount being transferred. This is due to the SWIFT fees that cost $20 - $50 per transfer and an exchange rate mark-up of 2 - 4%. This means that transfering a $1000 to EUR can costs around $40 - $70 plus a receiving fee charged by the recipient's bank.
The good news is that there are money transfer services that could save you money on international transfer fees. Let's have a look at some of the best ones in the market.
The convenience of using the Wise Business account together with the batch payment tool for running payroll in different currencies makes Wise work seamlessly for employers and contractors alike.
Employers can pay in 40+ currencies and contractors can use Wise multi-currency balances to receive their wages and take advantage of the low conversion fee. This makes Wise a strong choice for paying contractors abroad, too.
Cost | From 0.43% |
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Speed | 0 - 2 working days (60% of transfers are instant!) |
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💡 Save time and money, pay local and international contractors with Wise Business. | |
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Payoneer’s services are quite similar to Wise. They provide local account details in different currencies where contractors can receive payments for free. Employers can make international payments to overseas contractors.
Cost | 1% local bank transfer fee¹ + currency conversion |
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Speed | 1 - 2 working days |
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🔍 Read the full Payoneer review |
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OFX doesn’t charge a transfer fee however, they make money by adding a mark-up on their exchange rate which can vary according to the transfer amount and your transaction history with them. It’s usually higher for smaller amounts and vice versa.
Cost | Transfers under $10,000 - flat fee of $15³ |
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Speed | 0 - 1 working day |
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Bigger companies often employ payroll software for larger payout volume but it's usually more expensive due to monthly subscriptions and cost per employee. But this reduces errors and eases tax reconciliation. There are a few services that are tailored to small and medium enterprises. Here are some of them:
In order to run Payroll using BitWage, the employees need to be invited to set up a receiving account so even though the service is cost effective for companies, the challenge comes from convincing employees to use BitWage to receive their wages. Unfortunately, as it can be quite expensive for them due to 1% charge per deposit, or $15.99 per month for the Premium Invoicing service, they tend to use other services that charge no fee for receiving payments
Cost | 1% fee on local currency wage distribution (for standard subscription). $7.99/employee/month subscription charge for premium account.⁴ |
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Speed | 0 - 1 working day |
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Paylocity (see Paylocity Alternatives) offers payroll services, HR, talent management, attendance, and benefits administration functions and supports mobile apps to conduct workforce management on the go.
Cost | Priced per employee per month (PEPM) depending on the features you select for your plan⁵ |
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Speed | 0 - 1 working day |
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Paychex offers a compact package of human resources management solutions that integrates HR administration, retirement, ATS, HRIS, and employee benefits.
Cost | Pricing on request⁶ |
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Speed | 0 - 1 working day |
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It's important to keep in mind that the cost shown above is not final. For most services, you’d have to integrate a bank or financial tools to execute the payment. Also, keep in mind the minimum head count per payroll. Most companies have 20 employees minimum volume.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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