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[Soulliard]

For my next game, I'll be contracting help for the first time.

Does anyone have any recommendations for how to handle payments? I know you can do it through Paypal, for example, but are there better alternatives?

Also, if I'm working with someone from a foreign country (I'm from the US), are there any additional taxes or fees I need to worry about?

[Gregg Williams]

Wire transfer can be cheaper than paypal after around 1000 USD often. There can also be tax withholding issues if paying non-usa individuals rather than companies, this also is affected by tax treaties in place.

[Konidias]

Paypal will charge you fees for foreign transactions. It takes a "cut" for the exchange rate process... which is quite annoying when the currency in your country is already lower than the currency in the other country. Meaning not only do you have to pay more just because of the exchange rate, but you're also paying more because of the steep fees they charge.

But you gotta do what you gotta do. It's still the easiest solution for payments. Also before you ask what the fees are, you'll just have to look at paypal for yourself, because they change on what seems to be a daily basis.

[Soulliard]

There can also be tax withholding issues if paying non-usa individuals rather than companies, this also is affected by tax treaties in place.

What kind of fees? This is from the United States to Canada, so I don't think there will be too much red tape (thanks, NAFTA!)

It looks like PayPal will take up to 2%, so that may end up being the best option.

[Gregg Williams]

There can also be tax withholding issues if paying non-usa individuals rather than companies, this also is affected by tax treaties in place.

What kind of fees? This is from the United States to Canada, so I don't think there will be too much red tape (thanks, NAFTA!)

It looks like PayPal will take up to 2%, so that may end up being the best option.

Depending you sometimes are suppose to withhold up to like 30% of earnings and so forth. I suggest looking into the laws or talking to an accountant if your seriously concerned about this.

[Evan Balster]

I've heard good things about using Dwolla for paying contractors within the US.  25 cent flat fee.