How to Pay Remote Employees in Uganda

Before you can roll out the payments for remote employees in Uganda, it is vital to learn about the country's tax obligations.

For example, withholding tax laws in Uganda apply to employment income for remote employees in Uganda. The employment income includes allowances, salary, and other benefits. The employer deducts the income tax on these payments (PAYE).

Using bank transfers is easy, but it may not be the most convenient way to abide by tax regulations for you and your remote employees.

Fortunately, there are several methods you can explore when it comes to administering payroll and ensuring that remote employees in Uganda are paid on time. They include the following:

1. TransferWise

TransferWise is undoubtedly one of the cheapest and fastest ways to pay remote employees in Uganda. The most significant advantages of using TransferWise to pay remote employees in Uganda and other countries are low transaction fees and great exchange rates. You can use TransferWise to transfer as much as $1,000,000 in a single transaction as an employer.

Ensure that you and your remote employee open a free account, connect it to a valid bank account and proceed to verify your identity. Afterwards, you can log in and initiate the payment.

2. PayPal 

You've probably heard of PayPal, the world's most popular online payment platform. When remote employees in Uganda receive their payments on their PayPal accounts, they can transfer them to their bank accounts or phones via MTN MoMo.

The remote employees will pay a transaction fee to transfer the funds from their PayPal accounts to their respective bank accounts. It is also worth noting that remote employees in Uganda can link their PayPal accounts with only two banks at the moment, namely the United Bank of Africa and Equity Bank.

3. Outsource Payroll

When paying remote employees in Uganda, you can also outsource the payment process to a Ugandan company. However, you will be responsible for their compliance for the duration of their employment with you.

Alternatively, an international PEO like Workpay who meet all of Uganda's taxation and payroll laws. Workpay also ensures that your employees receive payments on time.

Remember:

It's your responsibility as an employer to ensure your remote employees in Uganda receive timely payments in compliance with the laws and regulations. Therefore, always discuss the most appropriate payment method available with your remote employees that also suits your company's needs.