Can a US company pay foreign employees?

Yes, a US company can pay foreign employees. However, it is important to note that compliance with regulations of the foreign country is necessary. Why? Employees must be awarded the necessary benefits with financial issues such as tax deductions, insurance, and pensions properly taken care of. A US company can either set up a subsidiary or hire an EOR to do this. The company has to fulfill the proper duties of an employer to employee, the different locations notwithstanding.