A remote employee is a worker employed by a company but works away from the company’s geographical premises. The worker could be in a different state from yours or even on a different continent.
Types of Remote Workers
Full-time worker: A full-time worker works in one of your company’s branches located close to them. As the employer, you comply with tax regulations for your employee.
Contractor: A contractor is an independent worker hired by your company for specific services within a given period. Contractors handle their taxes.
Company/sole proprietorship: Employees set up their company and invoice the work done for your company. Tax management isn’t on your side, as the employees’ company pays taxes as a corporation.
Challenges of Remote Work
Lack of in-person supervision: Your fear as an employer is that your remote employees are not working efficiently. On the other hand, remote employees have limited access to managerial support and may feel that you are insensitive to their needs and unsupportive in getting your work done.
Interpersonal challenges: Lack of interpersonal interaction among remote employees makes them unable to understand the difficult circumstances that a coworker may be going through.
Social isolation: Remote business makes employees feel lonely without the interaction enjoyed in an office setting. Isolation in the long-term may cause employees to leave your company as they no longer feel attached.
Distractions at home: Family and home demands can affect remote work. Remote employees tolerate suboptimal workspaces. Some get engaged in parenting responsibilities during school and daycare closures.
How to Manage Remote Employees
Build a team
Teamwork creates a feeling of working together among employees. Teamwork prompts employees to work toward a common goal. It is constructive to build a united team where employees value each other.
Use video conferencing to see each other
Many video apps facilitate real-time conversation among team members. Opt for an affordable program that you can use to see and engage with your team.
Have a clear-cut channel of communication
Let your employees know who’ll address their concerns and answer their questions. Let them you’re your preferred methods of communication, such as texts, phone calls, or emails. Clear communication keeps your employees informed.
Be consistent in giving feedback, instruction, and assessment to create a stable and inclusive working environment. Being disorganized could disorient your remote employees.
Set clear expectations
Communicate your expectations to individual employees at the beginning of your contract with them. Knowing your expectations helps to keep employees focused on their roles.
Build a rapport
Develop a close working relationship with each employee and encourage their contribution to the work or team.
How to Pay Remote Employees
Payroll involves more than transferring money into your employees’ accounts. It also involves handling taxes for your full-time employees. Independent contractors/freelancers are responsible for their taxes.
When choosing a method of payment, consider the type of remote employees you have. They could be full-time, contractors, or company. You should also consider your employees’ location.
How to Pay Remote Employees Based in the USA
If your employees are not full-time, you can arrange payments with your bank. Although your employees are contractors, you’ll have to produce 1099 forms for every employee you paid more than $600 in that year.
You may use PayPal Payouts for multiple employees or outsource the payment process to a payroll expert or agency.
How to Pay International Remote Employees
Paying through your bank is an option, but bank fees make it expensive. You may also opt to use a platform like Upwork to pay your employees. The platform offers escrow protection for you and your employees. A 20% fee is charged on employees’ first $500 earnings.
Paystubs for Remote Employees
A pay stub helps your remote employees understand their earnings. You can create an online paystub and email it to your remote employees. For freelance employees, a paystub proves your payment for a specified period. For full-time employees, your paystub should include the following information:
Federal, state and local taxes withheld
Retirement plan contribution
Benefit insurance deduction
Pay period and date
Practices to Consider when Setting Up Payroll
Integrate payroll factors into a single system
Consider integrating the following functions into one system.
- Time tracking
- Workers’ compensation
- Health benefits
- Business operations
- Expense management
Automate your payroll
Automating your payroll saves time and increases efficiency. Automation allows you to deposit your employees’ earnings without writing checks. Payroll automation enables you to follow tax laws and keep accurate records.
Organize your payroll records
An organized payroll allows you to pay your employees on time. An organized payroll helps you keep your employees’ payroll information for 3 years as required by the Department of Labor.
Keep up with payroll laws
Staying informed of the recent adjustments in the payroll laws enables you to avoid breaking them. Payment laws differ across different states; you need to confirm your state’s laws from your local government agency.
Remote hiring is worthwhile as it gives your company access to global talent. It also reduces your business costs and allows you to keep productive employees.
If your payroll is complex, you can outsource the payment process to a payroll agency or use payroll services from online service providers.