[johnm1019]

> Do you hire and pay the 60th percentile at approx. local market rates? Do you hire the best remote people at SFBay market rates?

The business owner in me says start low and raise your rates until you get the talent you're happy with. I would offer uniform base pay as typically lower costs of living come with other tradeoffs. If someone wants to make that work let them (but make it clear that it's their responsibility to make sure the electricity and internet are flowing when it's time to get to work)

> How is payroll and benefits handled?

I would suggest doing it like the oil companies, you setup a company and banking in the caribbean somewhere, and then pay folks salary into bank accounts there for them as well. Make it their problem to move/repatriate money. Don't withhold any taxes and factor in a fixed rate for any bennies you want to offer (unless legally prohibited in specific jurisdictions of course, IANAL). Let them optimize the money. I know this is how big oil companies pay most of their workers who are on rigs in various locales in the world (and not just offshore!).