If you are paying "freelancers", then you are not paying "salaries". You are simply paying invoices from subcontractors who are acting as their own small business (sole proprietorship). Of course, they're in another country so their status may be treated differently there, but for your business here in the US, that's how you treat it. You are paying subcontractors. If you start throwing around terms like "salaries" and "employees" and showing a specific structure that you setup for when you will pay them...well that all sounds a lot like employees, and the US government may come asking why you aren't paying payroll taxes. On top of that, PayPal has strict rules about using their platform to pay "payroll" of any kind because of all the additional laws and liability around it. So again, I'm just stressing the fact that you are paying subs. With that fact in mind, yes, PayPal is a great way to do that. I would suggest they would not be using personal accounts, though. Again, they are not employees of your business. They are their own business, so they would have their own business account. You can make payments to them accordingly, and PayPal will disperse any necessary tax documentation at the end of the year for them to handle on their side. When they receive their payments they will charge PayPal's fee for the transaction. This is a cost of business to them, and it may make them think twice about what you're paying them. They may want to increase their price by 5%, for example, to cover the additional cost. I could go on and on about this subject, but hopefully that's enough to get you thinking about this a little differently. With all of that said, again, I would say PayPal would work well for you.
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