Payments
How To Pay A Virtual Assistant In Another Country
Paying someone abroad is easier than it used to be, but every method has a cost, a delay, and a paperwork trail. This guide compares the options and shows what a clean payment setup looks like.
9 min read
Updated September 23, 2026
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Key Takeaways
1
Pay on a fixed schedule. Predictable pay is the cheapest retention tool you have.
2
Use a contractor payment platform or your hiring service’s billing to keep records clean.
3
Agree on currency and who pays transfer fees before the first payment.
4
Collect the right tax form once, at the start, and store it.
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The Four Payment Models
The model decides the paperwork. Contractors invoice you or the platform. Subscriptions and employer-of-record setups turn the whole thing into one monthly bill.
Hourly contractor: you pay for tracked hours, usually weekly or twice a month.
Monthly retainer: a flat fee for a set number of hours or a full-time role.
Service subscription: you pay the company, and the company pays the assistant.
Employee via employer of record: a platform employs the person locally and runs payroll; you pay the platform.
Ways To Send The Money
Once you know the model, choose how the money moves.
Freelance and marketplace platforms: payment is built in, with escrow or payment protection, and fees of a few percent.
Contractor payment platforms: they generate agreements, collect tax forms, and pay out in local currency for a monthly fee per contractor.
International transfer services: low fees and fast transfers to bank accounts or mobile wallets, but you handle the agreements and records yourself.
Bank wires: reliable, but slow and expensive for small monthly amounts.
Employer-of-record payroll: the platform runs local payroll, benefits, and taxes; you pay one invoice.
Fees, Exchange Rates, And Who Pays
Every transfer has two costs: the fee and the exchange rate spread. A “free” transfer with a poor rate can cost more than a fixed fee with a fair rate. Compare the amount that lands, not the fee line.
Decide up front whether you pay in US dollars or local currency and who absorbs the fees. Many owners pay in dollars and cover the transfer fee so the assistant receives the agreed amount.
A Payment Schedule That Keeps People
Pick a schedule and never miss it. Twice a month is common for hourly work; monthly is common for retainers. Approve timesheets two business days before payday so transfers clear on time.
If you will ever be late, say so before the due date. A one-line message keeps trust intact. Silence does not.
Tax Forms And Records
For a foreign contractor working outside the United States, US businesses typically collect a W-8BEN form from the contractor once and keep it on file. Payments to foreign contractors for work done abroad are generally not reported on a 1099, but confirm the specifics with your accountant.
Keep the agreement, invoices, and payment confirmations together. Contractor payment platforms do this automatically, which is much of what you pay them for.
Raises, Bonuses, And Thirteenth-Month Pay
In the Philippines, a thirteenth-month payment in December is required for employees and widely expected by contractors. Many US owners pay it even to contractors as a goodwill norm. Latin American countries have similar year-end bonus customs for employees.
Set raise reviews on a schedule and tie increases to added responsibility. Small, predictable raises beat occasional large ones for retention.
Questions Owners Ask
Short answers to the things people ask most about this topic.
Do I have to withhold taxes for a foreign contractor?
Generally not for work performed outside the US by a non-US person, but collect the W-8BEN and confirm with your accountant.
What is the cheapest way to pay?
Transfer services usually have the lowest fees for small monthly amounts. Platforms cost more but include contracts, records, and dispute handling.
Should I pay in advance or after?
After the work, on a fixed schedule. Platforms with escrow let you fund in advance while still paying only for approved hours.
Can my assistant be paid to a mobile wallet?
In many countries, yes. Ask which option is fastest and cheapest on their end; it is often not a bank account.
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