Paying someone who lives and works in another country sounds like it should be as simple as pressing "send," but two very different problems are hiding inside that one task. The first is payroll compliance "calculating the right gross pay, deductions and contributions under the rules of the country where the person actually works. The second is moving the net salary across borders so it lands in the right account, in the right currency, on time. A payment service like Coinepay Global Remittance solves the second problem. It does not, by itself, make you a registered employer or calculate payroll deductions. This guide walks through both parts so your pay run is correct before you ever instruct a transfer.
Understand your situation first
Before choosing how to pay, be clear on how each person is engaged. The key facts are where they physically perform the work, their employment status, and whether the arrangement is permanent or temporary. Those facts decide which country's payroll and social-security rules apply.
- Do not reclassify an employee as a contractor just by changing the contract or the payment method. Tax authorities such as the IRS look at behavioral control, financial control and the overall relationship, and getting this wrong can create employment-tax liability.
- Direct employment in another country generally means registering as an employer there, registering the employee for social security, and withholding and remitting the applicable contributions.
- An employer of record (EOR) is an alternative where available: the provider becomes the local legal employer and handles the administration. Confirm it covers the worker's specific country.
Changing how money travels never changes these obligations. Decide the legal structure first, then use Coinepay as the payment rail that fits it.
Set up compliant payroll before you send money
For each work country, check the employment contract, right to work, minimum pay, benefits, tax withholding, social-security contributions, reporting, payslips and pay dates against that country's rules. There is no universal set of rates or deadlines. A few concrete examples that were current as this guide was written (October 2026), which you should always re-check against the official sources:
- United Kingdom: from 1 April 2026 the National Living Wage for workers aged 21 or over is \u00a312.71 per hour, with different rates for younger workers and apprentices. UK employers must give a payslip on or before payday and submit the Full Payment Submission (FPS) on or before paying employees. HMRC's "Globally mobile employees and PAYE" guidance was updated on 6 April 2026 " review it before altering a UK pay run, and keep deducting PAYE Income Tax unless the applicable arrangements change.
- EU postings: a worker temporarily posted to another EU country may keep sending-country social-security coverage for up to 24 months if conditions are met. Request an A1 certificate rather than assuming the exception applies, and remember a host-country posting declaration is usually required.
- United States: U.S. citizens or residents working abroad for an American employer are generally subject to Social Security and Medicare taxes; a totalization agreement may prevent double contributions. Eligible citizens (not resident aliens) may use Form 673 for exclusion-based withholding claims.
- Canada: paying a nonresident employee for work performed in Canada can create Canadian income-tax deduction duties even for a non-Canadian employer; treaty or certified nonresident-employer relief has conditions and is not automatic.
One more structural point: the November 2025 OECD Model Tax Convention update added guidance on when someone working from home in another country can create a permanent establishment for the company. That depends on the facts and the relevant treaty " not on where the salary is sent. If in doubt, take local tax advice before you hire.
Run the pay cycle, then fund it with Coinepay
Only after the compliance work is done does the money move. Calculate gross pay, required deductions and employer contributions, then net pay under the applicable rules. The transfer is the last step, not the payroll itself.
- Register and complete KYC. Create your Coinepay account at the registration page and finish identity verification. Businesses verify the company and its representatives. Card issuance and fund services are provided by licensed partner institutions, so verification is required before you can send.
- Collect each recipient's details. Use the employee's name exactly as held by their bank, plus the account identifiers the destination and currency require. An IBAN identifies the account in participating systems; a BIC identifies the bank. For mobile-wallet payouts you'll need the registered wallet details instead.
- Choose the payout method. Coinepay Global Remittance supports bank-account deposit, mobile wallets (for example UPI, GCash, Maya, M-Pesa, bKash, JazzCash and GoPay) and cash pickup. Pick what your employee can actually receive in their country.
- Enter the salary and review before confirming. The app shows the exchange rate, any fees and the estimated arrival time for that corridor and method before you confirm. Check the recipient amount and the name"account match carefully " in the euro area, provider payee-verification rules now flag name"IBAN mismatches, and you should resolve any mismatch before releasing a salary.
- Confirm and track. Every transfer has status tracking in the 24/7 dashboard and the Coinepay app (iOS and Android). Keep the confirmation with your payroll record.
- Reconcile. Match each completed transfer against the payroll record and investigate any unpaid or returned item.
If you are paying several people, repeat the review for each recipient so the correct net amount reaches the correct account. When a remittance better fits your structure than a card, use it for salaries; the Coinepay virtual card is more suited to paying for software, advertising and online purchases than to running payroll.
Compliance and documentation
Cross-border salary transfers are subject to identity verification, sanctions screening and local regulations. Coinepay screens customers and counterparties against sanctions lists and may ask for supporting documents, such as the purpose of the payment or the source of funds " having employment contracts and payroll records ready makes this smooth. Coinepay sends to every country and region except those under comprehensive sanctions (such as Cuba, Iran, North Korea, Syria and the occupied regions of Ukraine), and it does not serve sanctioned persons. Separately, you remain responsible for your own obligations: U.S. persons, for example, are generally prohibited from unauthorized dealings with parties on OFAC's Specially Designated Nationals list. Never split a payment, route it through a third party, or take any other step to sidestep checks or reporting.
Troubleshooting
- Payment pending longer than expected: estimates are not guaranteed arrival dates. Funding time, security checks, the recipient bank's processing, public holidays or incorrect details can all delay a transfer. Check the status in the app first.
- Returned or bounced salary: usually a name, account-number or IBAN mismatch. Re-confirm the details exactly as the bank holds them and send again.
- Verification request mid-transfer: respond promptly with the requested documents (purpose or source of funds). This is routine screening, not a rejection.
- Payout method not available in a country: confirm which method your employee can receive and re-check corridor support in the app before promising a pay date.
- Not sure your arrangement is compliant: that's a payroll and tax question, not a payment one. Speak to a local payroll adviser or EOR for the worker's country before you pay.
For account, corridor or document questions, reach Coinepay support or the Telegram channel. Get the compliance right, prepare accurate recipient details, and the transfer itself becomes the easiest part of paying your team abroad.
Get your Coinepay virtual card: Sign up · App Store · Google Play · Customer support
FAQ
Can I use a Coinepay virtual card to pay overseas employees?
The virtual card is designed for online payments like software, advertising and shopping. For salaries, Coinepay Global Remittance is the better fit because it sends funds to a bank account, mobile wallet or cash pickup in the employee's country.
Does using Coinepay make me a compliant employer in the worker's country?
No. A payment service moves money but does not register you as an employer, calculate payroll deductions, or handle social-security registration. You must set up compliant payroll separately, directly or through an employer of record, before sending pay.
What details do I need to pay an employee abroad?
The recipient's name exactly as held by their bank, plus the account identifiers for the destination and currency (such as IBAN and BIC), or the registered mobile-wallet details. Completed KYC on your Coinepay account is also required.
Will Coinepay ask for documents when I send a salary?
It may. Transfers are subject to identity verification and sanctions screening, and Coinepay can request documents such as the purpose of the payment or source of funds. Keeping contracts and payroll records handy makes this quick.
Which countries can I send salaries to with Coinepay?
Coinepay sends to every country and region except those under comprehensive sanctions, such as Cuba, Iran, North Korea, Syria and the occupied regions of Ukraine. Confirm the payout method your employee can receive in the app before you pay.
