As U.S. startups and scaleups ramp up hiring in Latin America (LATAM), hidden costs like FX fees, payment delays, and compliance risks are quietly eating into budgets. At SigmaRemote, we dug into data from 70+ companies hiring across LATAM from Q3 2023 to Q2 2025. Here’s the scoop - and why USD payroll is a game-changer.

FX Fees: The Silent Budget Killer

Platforms like Wise, Payoneer, and international bank transfers hit you with 2.5%–4% FX fees per transaction.

Let’s break it down:

Assumptions:

• 2 payouts/month

• $2,500 USD/month salary

• 3.2% average FX fee
  
  

Cost Breakdown:

• Monthly FX fee: $80 ($2,500 × 3.2%)

• Annual FX fee: $960 ($80 × 12)

• Admin time + delays: $3,800–$4,200

• Total annual hit: ~$4,800 per employee
  
  

“We were bleeding nearly $5K per developer just to get money into LATAM. Total wake-up call.” - CTO, YC-backed Fintech"

Payment Delays: More Than an Annoyance

Processing time: 3–5 business days with traditional methods

• Problem: When payments are slow, top LATAM talent doesn’t wait around - they move on to employers who pay faster.

• Data point: Companies relying on delayed bank transfers saw up to 22% lower contractor retention, as top LATAM talent opted for faster-paying employers.

Fast, reliable payroll isn’t just nice - it’s a retention lifeline for top developers.

Compliance Risks: A Legal Tightrope

Between 2023 and 2025, Argentina, Mexico, and Colombia introduced 40+ legal changes affecting remote work, taxation, and digital employment.

• 62% of startups struggled with tax forms and worker classification - leading to misfilings or blocked payments to LATAM contractors.

• 30% risked double taxation or unexpected penalties.

• Beyond fines: Compliance mistakes can damage your reputation with talent and partners — and delay your ability to scale into new markets.

It’s a minefield out there.

The Fix: USD Payroll

Switching to USD-first payroll like SigmaRemote flips the script:

• No FX fees with US ACH or digital wallets

• Instant payouts via USDC or local cash-out

• Savings: $4,800–$6,500 per employee yearly

• Hiring boost: 34% better conversion with USD offers
  
  

At $12/month per contractor - 70% cheaper than Deel - SigmaRemote handles compliance and throws in USD savings accounts and investment options for contractors.

Where USD Payroll Wins in 2025

Source: SigmaRemote Survey, 320 LATAM pros (Jan–Apr 2025)

Your Edge in 2025

Global teams want payments that are fast, fair, and flexible. With FX fees and compliance eating margins, USD payroll isn’t optional - it’s essential. Companies making the switch save big, retain talent, and stand out in LATAM’s hiring game.

Chat with a Payroll Expert USD vs. Local Payroll Breakdown