Working as an independent contractor in Columbia for a US company is very common these days. Paying wages to overseas employees in Columbia is done through a variety of methods. Various remittance services are used to send payments to overseas contractors. However, paying independent contractors in cash in Columbia also occurs to avoid payroll and the company’s taxes. The hiring of independent contractors in Columbia is done through an independent contractor agreement of Columbia to establish an independent contractor-employee relationship. The independent contractor payment schedule is defined by the payment terms and rights.
Paying wages to an independent contractor working remotely from India a US company tax occurs through various remittance services of the country. These companies charge a specific amount for delivering Indian contractor pays and paying 1099 employees of Columbia. Paying independent contractors hourly in Columbia is also the legal method to pay employees cash. The contractor upfront in Columbia should be paid for a maximum of 33% or 50% of the total cost upfront.
Independent contractor payment rights of the Columbian 1099 employees and contractors are protected by the companies through which the contractors are linked. Hiring independent contractors in Columbia occurs through the Labor regulation of Columbia. The regulations comply with the specifications of the International Labor Organization. Contracts of different types such as Indefinite term contracts, fixed-term contracts, temporary and services contracts are made between the 1099 employees, contractors, and clients.
Independent contractors must register with DIAN through Unique Tax Register and they must submit annual income statements documenting all receipts of working remotely from Colombia for a US company tax. Independent contractor payroll for Colombia is often avoided by the employees. In Colombia, the Pension and Social Securities Unit is enforcing the foreign companies’ for payroll tax obligations to fulfill the nation’s social security funding. Thus, the independent contractors have to pay a normal amount of tax.
Paying independent contractors hourly in Columbia has also gained popularity because a large number of software developers working remotely from the country usually use the English language for dealings rather than their native language Spanish. The currency of Columbia is Columbian Peso. The average salary of a Columbian independent contractor is $256,002. The average salary for a Software Developer is $85,626 in Columbia
US companies paying foreign employees:
Independent contractors and 1099 employees can work remotely from Columbia. They can get paid from international clients by using various remittance services. The foreign companies use various money transfer services to pay employees cash legally in Columbia such as Remitly, World Remit, Wise, Western Union, and Azimo.
Remitly is a cost-effective, and safe method of paying independent contractors hourly in Columbia. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments. The company also provides promotional packages for new customers.
Wise International Payment is the least expensive method to send money to Columbia for paying Columbian Independent salaries. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. $13.01 (0.65% conversion fee). The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in Columbia in one go. The company’s application has made International payments more convenient.
Western Union is another method for sending payments to foreign contractors for services. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Remitly the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.
RIA is used for paying wages to overseas employees in Colombia. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive (i.e. $35). RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.
Xoom is a user-friendly service based in California for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the transferring medium. Furthermore, the remittance cost is very low in locked-in exchange rates. Money transfers can be tracked through the company’s application. Delivery occurs in 1-2 days.
World Remit also provides a reliable service of paying wages to independent contractors in Columbia. The transactions can be made through credit cards, debit cards, or mobile applications. It provides facilities for bank transfer, cash pickup, and airtime top-up. The transfer costs are very low at best exchange rates. The transfer fee is $3.99 which can increase to $24.99 for various currencies.
Payments to overseas contractors are also sent through Aximo. Instant one-hour delivery is available in 80+ countries. The company provides the first two transfers free of cost. The company also has anti-fraud and encryption technology due to which it is trusted by more than 1 million customers. Like Xoom, the employers make an account through which they can transfer the contractor payments and pay 1099 employees easily. The remittance cost depends upon where the amount has to be sent. The company claims to save 90% of the remittance costs when compared to other remittance services.
It is another method to pay salaries in Columbia. OFX helps to pay internationally without a fee. However, a mark-up is made on the exchange rates through which they earn money. The mark-up depends on the amount to transfer and the transfer history with OFX. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50. Service guarantees delivery in 1-2 days.
Payoneer is a convenient method to send contractor pays and paying freelancers of Columbia. Payments can be made by Debit cards and provide an option of receiving directly in the bank account which provides a bonus of $50 when above $100 are received this way. It takes almost 3-5 days in delivering the contractor pays.