How To Accept Payments For Freelancers In Canada
The number of people leaving their 9-5 jobs in Canada to pursue careers gives them the freedom to work and to do what they want and when they want.
Canada is a most attractive place to work as a freelance, with publicly supported health care services that allow people to save money and access loans for self-employed people and companies across the globe enjoy recruiting skilled, highly qualified persons in a wide range of industries.
It is crucial that you understand everything you would have to do to pay the rate they deserve, while saving money as you send money abroad. when you decide to recruit freelance employees in the world to help you achieve your business goals. The following short guide will help you get started
How to pay an international invoice
1. Negotiate currency exchange rates
Speak to your freelancers to see if they would like to pay in your local currency. For instance, you will find that many companies are happy to be paid in dollars if you are a company in the United States and you need to pay for a company in China.
2. Select a platform for money transfer that works for you
Paying a freelancer in Canada for an international invoice does not have to be difficult or costly. You can move your money easily online with the right provider, and at a better rate. Later in this post, we’ll compare two common options for making an international money transfer.
3. Reduce currency risk
Currency risk is the risk that the financial results or role of any company or entity may be influenced by exchange rate fluctuations. Access tools to reduce risk, such as forward contracts, to protect you from disadvantageous currency fluctuations depending on the provider you select. If you pay freelancers in Canada regularly, this will help to deliver consistent rates.
How to transfer money to Canadian freelancers
You have more options than you might imagine when moving payments to your freelancers in Canada. Although you can think about using your bank, an alternative foreign money transfer provider could be smarter way to go.
Transfer with a Bank
The common problem business finds with using a bank to move money is that when you use them to send money overseas, they end up charging high margins and fees. All these expenses add up, meaning you spend more money in Canada to recruit freelancers, while this tactic should instead help you save money.
Another thing to consider is the fact that intermediary banks that are also involved in the transfer could take their own margins and fees when you transfer money this way. And the bank of the recipient could even add more fees as well. This can cause your freelancer to take quite a hit on their earnings, and they may start asking you to cover the additional costs so that they make their job the full rate expected. (continued)
Transferring with an alternative international money transfer (IMT) provider
Online money transfer services like Remitr are a much better option when you need to send money to Canada. Remitr don’t charge high margins and fees like banks do, and our margins on the interbank rates are much lower.
Plus, you don’t have to sacrifice speed or security when you use Remitr. In fact, because we operate 24/7, you can lock in your transfers anytime, and you can keep track of every transfer using our handy mobile app.
Remitr even offers helpful tools, like currency charts, to help you see exactly what your money will look like once it’s been converted into Canadian dollars. All of this adds up to your freelancer getting paid on time, and getting the rate that they deserve.
What your business should look for in a global money transfer provider
When choosing a global money transfer provider, there are a few things to consider:
You don’t want to keep your freelancer waiting, so it’s best to use a service that moves money swiftly. Thanks to a global network of 115 bank accounts, Remitr can typically transfer money very quickly. Most transfers might only take 1-2 days* from the time Remitr receives your funds, but some transfers in the major currencies like USD, CAD and AUD might even be completed within the same day.
As we mentioned above, banks are likely to charge you high margins and fees when you need to submit payments to freelancers in Canada. It shouldn’t cost you so much just to have your money converted and moved internationally, which is why OFX makes it more affordable for businesses, so you can get back to what’s important, running your business.
When you use Remitr, you also gain access to various transfer options to help you reduce the risk of spending more money because of exchange rate fluctuations. Those include:
Remitr’s Forward Exchange Contracts, which let you lock in an exchange rate, even if you aren’t going to submit a payment right away, and transfer at that rate for up to 12 months in the future. This is great for paying freelancers because you can purchase the amount you need in bulk at that great rate, and use it to ensure your freelancer gets consistent pricing on their paycheck.
Limit Orders, which let you choose your target exchange rate. We’ll contact you as soon it’s reached so you can make your transfer at the most opportune moment.
24/7 customer service can be hard to come by, but it’s what Remitr believes in. Whenever you need assistance, we’re here for you, so all you have to do is reach out. Even if you’re planning on sending a transfer in the middle of the night and you have questions, we’ll be there. Banks, on the other hand, work within certain business hours, so they aren’t always available to help.
Legal and tax requirements for paying overseas freelancers in Canada
Freelancers in Canada are responsible for tracking their income and paying the necessary taxes on it based on Canadian tax laws. They aren’t required to charge you, their client from abroad, any taxes. However, they might consider the fact that they need to put money aside for taxes when coming up with their rate.
The best places to find freelancers in Canada
Accessing a large pool of Canadian freelancers can be done completely online. Here are just a few of the top websites where you can connect with talented workers:
- Hubstaff Talent
- Virtual Gurus
Canadian freelancers can help your business save money
Hiring a freelancer in Canada can be beneficial to your business in several different ways. You can enjoy a flexible working relationship that allows you to hire someone whenever you need them, and you can save money by outsourcing certain tasks rather than hiring staff to work in your office full-time. Most importantly, you give yourself the chance to work with highly talented individuals that you otherwise wouldn’t have had access to. As long as you’re using the right money transfer system when you need to pay freelancers, you’ll begin reaping the benefits of this strategy right away.