07/22/2024
#ForBusiness | #ForFreelancers | #Instruction
Arina Kozlova
Pay remote teams and freelancers worldwide in any currency
- EasyStaff was created to make contractor payment convenient and secure. By working with EasyStaff, companies are not limited to a familiar set of countries when choosing a contractor.
- EasyStaff acts as a B2B partner for the company. As such, the relationship with the contractor is governed by a service agreement that the client signs with EasyStaff. This eliminates the need for VAT.
- The company will receive closing documents for each payment, allowing them to report their expenses to the tax authorities. The closing documents are issued by EasyStaff, which allows the company to hire any contractor regardless of their legal status or jurisdiction.
- The service offers different types of plans depending on how the account is replenished and how the recipient withdraws the money. This helps users choose the most advantageous conditions for themselves.
- The EasyStaff platform facilitates payments to CIS countries as well as other countries. The range of payment methods and options for topping up and withdrawing funds is wide. For more information, consult the client support on the website in the chat window or by email at [email protected].
What can I tell my client to convince them to choose EasyStaff?
Let's use a specific example to illustrate the cost savings for a business client when working with a contractor through EasyStaff.
As you can see, the difference in expenses for the client is about €350 which makes a significant saving. This money is often factored into the freelancer's fee, compelling them to offer a lower price to the client right from the start.
- Imagine that the company XYZ from Italy hires a freelancer from Belarus. The freelancer's services cost $1000.
- Italian companies can’t just pay a foreign individual. By law, they become the company’s employee. This triggers the need to pay social security contributions of which up to 40% is paid by the employer. In total, the employer could end up paying an additional €400 on top of the €1000 fee, making the actual cost €1400.
- Beyond this hidden €400, the client might also face additional fees the freelancer pays to withdraw their earnings. International payment services like PayPal are not readily available in Belarus. Therefore, the freelancer would likely factor in their withdrawal fees into the overall task cost.
- However, if XYZ registers with EasyStaff, these costs are pretty much gone. Firstly, there are no taxes, neither income tax nor VAT, and no social contribution. Secondly, EasyStaff offers flexible commission options.
- There are two commission choices: a percentage-based fee or a fixed one-time payment. The default option for businesses is a 7% commission, while a one-time payment is usually €39.
- Therefore, the client has two choices: pay €1,039 (€1000 fee + €39 one-time payment) or €1,070 (€1000 fee + 7% commission). In this case, the one-time payment option is more cost-effective.
As you can see, the difference in expenses for the client is about €350 which makes a significant saving. This money is often factored into the freelancer's fee, compelling them to offer a lower price to the client right from the start.
Working with EasyStaff: A Cost Breakdown
A business representative of your client is supposed to join EasyStaff first. After signing the agreement with the service, they invite freelancers to the platform. Once everyone is onboard, the client manages all remote contractors through a single platform.
Here is what a short instructions for your client looks like:
Here is what a short instructions for your client looks like:
- Click Log in. Select I am a Business in the next step. Provide the required information in the form Sign up as a Customer. After completing the form, you will receive a contract via email. By signing it, you agree to the terms of service.
- There are more fields in the company profile to be filled out. By default, the 7% fee is set. The customer is free to change their plan. To do that, they should reach out to their personal manager who will provide the most beneficial options for them.
Who can join EasyStaff?
The minimum transfer amount in the service is €10. The advantage of EasyStaff over other platforms is that there is almost no entry threshold! A threshold of 10 euros is quite an acceptable amount for any client.
The service charges a commission for working with it. The commission size can be either a percentage of the transferred amount or a fixed amount regardless of the sum to be sent. The commission size depends on the following factors:
The service charges a commission for working with it. The commission size can be either a percentage of the transferred amount or a fixed amount regardless of the sum to be sent. The commission size depends on the following factors:
- The top-up method: by card, bank transfer or cryptocurrency;
- The withdrawal method: by card, bank transfer or cryptocurrency/PayPal;
- Monthly turnover: less than or more than €50,000 per month.
How much does a client need to pay to use EasyStaff?
First and foremost, the company receives a ready-made tool for transferring money to you. This effectively solves potential problems that may arise when the client considers working with a freelancer. They no longer need to spend hours online searching for a solution, consulting with lawyers and finance managers. You come to the client with a ready-made payment service and can start working faster, reducing the time spent on organizational issues for both you and your client.
In addition, a company that pays its remote employees and freelancers through EasyStaff receives a number of additional advantages, including:
In addition, a company that pays its remote employees and freelancers through EasyStaff receives a number of additional advantages, including:
- Compliance with tax and labor law. Both in their home country and in the country where the contractor resides, the employer company must transfer money in accordance with local rules and regulations. When working with EasyStaff, the company interacts with a B2B partner at home instead of multiple foreign contractors. Thus it avoids non-compliance risks associated with paying contractors online.
- Saving money, time, and effort. If complex work related to money transfers abroad is delegated, business owners are able to free up time for key tasks. Searching for a payment solution that is convenient for both the company and you may be quite a toll in terms of time and effort.
- Unlimited collaboration. It takes a couple of clicks to expand the scope of their search for contractors and employees for other projects. Chances are your client will be grateful that you solved a major operational task for them.
Why is EasyStaff beneficial and convenient for your client?
EasyStaff connects the client/employer and the contractor/employee through a service contract, with the service itself also participating in this contract. For the client/employer, the service acts as the contractor. The client/employer transfers money to the account of EasyStaff, which means that the transaction concerns two legal entities. The result is that VAT is not incurred in this transaction because the reverse charge mechanism is applied.
For the contractor/employee, EasyStaff is the client/employer. That is, on paper, EasyStaff is the one who purchases the labor of the contractor/employee. Closing documents are provided so contractors are able to declare their income.
How does EasyStaff occupy this intermediary position? It comes down to the jurisdiction where EasyStaff operates. As a Lithuanian company, EasyStaff is not required to pay taxes for employees. Therefore, the service is able to risk-free accept the responsibility for complying with tax and labor laws in the country where the contractor/employee is located.
For the contractor/employee, EasyStaff is the client/employer. That is, on paper, EasyStaff is the one who purchases the labor of the contractor/employee. Closing documents are provided so contractors are able to declare their income.
How does EasyStaff occupy this intermediary position? It comes down to the jurisdiction where EasyStaff operates. As a Lithuanian company, EasyStaff is not required to pay taxes for employees. Therefore, the service is able to risk-free accept the responsibility for complying with tax and labor laws in the country where the contractor/employee is located.
How does EasyStaff work?
EasyStaff’s clients are companies that hire freelancers for projects or work with remote teams on a permanent basis.
Let’s look at the first example, where a company needs to pay a freelancer for work completed. Sending money through international services like PayPal or simple bank card transfers between individuals won’t solve the problem. In the first case, financial flows to a specific country may be unavailable. For example, most services currently cannot provide payments to CIS countries. As for the second case, companies that strive to remain compliant need to report to regulators on their expenses with a backup of supporting documents. For long-term relationships (both with a freelancer and with a full-time employee from abroad), the company needs to maximize its distance from standard employment. According to the legislation of some European countries, when paying a contractor or an employee, the business acts as an employer obliged to pay taxes for employees. Precise employer obligations vary from country to country based on local labor law. Not fulfilling them when working with a freelancer is likely to lead to more taxes and even penalties.
EasyStaff is the way to legally avoid the need to pay tax thanks to how it structures the working relationship between customers and freelancers. Formally, the freelancer starts working for the Lithuanian company EasyStaff, and EasyStaff becomes a B2B contractor for the business.
Let’s look at the first example, where a company needs to pay a freelancer for work completed. Sending money through international services like PayPal or simple bank card transfers between individuals won’t solve the problem. In the first case, financial flows to a specific country may be unavailable. For example, most services currently cannot provide payments to CIS countries. As for the second case, companies that strive to remain compliant need to report to regulators on their expenses with a backup of supporting documents. For long-term relationships (both with a freelancer and with a full-time employee from abroad), the company needs to maximize its distance from standard employment. According to the legislation of some European countries, when paying a contractor or an employee, the business acts as an employer obliged to pay taxes for employees. Precise employer obligations vary from country to country based on local labor law. Not fulfilling them when working with a freelancer is likely to lead to more taxes and even penalties.
EasyStaff is the way to legally avoid the need to pay tax thanks to how it structures the working relationship between customers and freelancers. Formally, the freelancer starts working for the Lithuanian company EasyStaff, and EasyStaff becomes a B2B contractor for the business.
Who is the EasyStaff client?
The service was founded by Vitaly Mikhailov, the ex-CFO of KiwiTaxi. While still at KiwiTaxi, Vitaly was involved in expanding the company’s financial structure. It was during this time that he first came across the market for SaaS solutions for companies working with international contractors with a focus on providing financial flows and document management for both sides. This led to the idea of EasyStaff, a platform that now helps clients (both legal entities and individuals) manage remote contractors from other countries.
Why was EasyStaff created?
In every article on successful freelancing, the focus is on the importance of continuous skill development and upgrade, filling out your profiles, and having multiple accounts on different freelance platforms. However, at EasyStaff, we firmly believe that the key to successful client relationships is a clear and secure way to pay for your services online which makes sending and receiving money in international projects much easier. In this new article, we present a step-by-step guide on how to explain to a client what EasyStaff is and how the payment process works using this service.
Making Payments Easy for Customers and Freelancers. EasyStaff is Your Reliable Freelance Partner.
Customer Support working hours: 8:00 – 17:00 UTC+2
EasyStaff UAB
Code 305643163
V. Nagevičiaus st. 3, Vilnius, Lithuania,
LT-08237
V. Nagevičiaus st. 3, Vilnius, Lithuania,
LT-08237
