How To Pay Foreign Contractors In Ukraine

July 22, 2021

Working as an independent contractor in Ukraine for a US company is very common these days. Paying wages to overseas employees in Ukraine is done through a variety of methods. Payments to foreign contractors for services are done by an independent contractor payment schedule in Ukraine. Hiring independent contractors in Ukraine by determining the Ukraine independent contractor salary of the 1099 employees, and contractors. Paying independent contractors in cash also occurs in Ukraine to avoid independent contractor payroll for Ukraine and the company’s taxes.

Paying employee cash legally:

Paying independent contractors hourly in Ukraine is also the legal method to pay employees cash. Independent contractor payment rights are considered for defining the independent contractor payment schedule in Ukraine. The contractor upfront in Ukraine should be paid for a maximum of 33% or 50% of the total cost upfront.

Independent contractor payroll for Ukraine:

Payment to foreign contractors for services tax and income tax rate is fixed i.e. 18% on the Ukraine contractor pays and Ukraine 1099 employees. Independent contractor payroll for Ukraine as employer contribution is 22% and that of employee contribution is 0.6% to State Fund for unemployment.

https://3.imimg.com/data3/EO/XL/MY-17897103/outward-remittance-service-500x500.jpg

Salaries in Ukraine:

The majority of the people in Ukraine speak Ukrainian but the English language is used for official purposes and to determine Ukraine contractor pays. The average salary of a software developer in Ukraine per year is $48,000. However, the average salary in Ukraine is 23,000 UAH per month. The currency used in Ukraine is the Ukrainian hryvnia. The exchange rate with USD is 27.53 Ukrainian hryvnia. 

Services tax:

Working remotely from Ukraine is possible for a US company. Employees working remotely from India or any state have to file and pay income taxes of states where the employee lives. The best way to get paid internationally is using various remittance services. The contractors can make an average of $48,000 in Ukraine.

Paying independent contractors hourly in Ukraine:

Paying independent contractors hourly in Ukraine 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.

Remittance services available in Ukraine:

Paying independent contractors in Ukraine is an easy task and it takes a few steps. The employers check the UAH mid-market rate and different remittance services are compared. Following are some best ways to get paid internationally to Ukraine 1099 employees and foreign contractors including the specifications:

  1. Wise International Payment:

Wise International Payment is the least expensive method to send money to Ukraine. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. $0.51 with an exchange rate of 27.3300. A flat fee rate of 6.13 USD + 2.31% of the amount is added. 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 Ukraine in one go. The company’s application has made International payments more convenient. However, the recipient can not track the transaction statuses.

  1. RIA:

Freelancers can also get paid through RIA which 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. It charges $5 when the payment is sent via a bank account in Ukraine. 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.

  1. Remitly:

Remitly is a cost-effective, and safe method of sending foreign independent contractor pays in Ukraine. 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.

  1. Western Union:

Western Union is another method for paying salaries in Ukraine. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. The application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

  1. Direct deposit:

Paying independent contractors through direct deposit is another frequently used method by creating an OFX account. After choosing the bank checks are required to process Pay to the Order of drop-down arrow. After selecting the option for independent contractors transfer date is entered. The amount is entered and the Pay Online method is verified.

  1. Pay Send:

Pay send is another method through which remote workers are paid in Ukraine. The contractor pays can be transferred online to any Mastercard in Ukraine at the rate of $2. It is the best method to pay independent contractor salaries in Ukraine because the delivery occurs in few minutes.

  1. Xoom:

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 sending 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. However, complaints of delays and cancellations of the payments have also been observed.

  1. Azimo:

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.