![]() Employees are entitled to benefits and worker protections, whereas contractors are usually not.Ĭonversely, contractors are able to exercise more freedom and flexibility in the way that they work, whereas employees are generally subject to the rules and practices of their employer. In almost every country in the world, contractors and employees are classified differently. It’s preferable to uncover any issues during the hiring process, than when the work has been done and the contractor is waiting to get paid.Īs a result, there are a few things you need to ensure before you start making any payments. You can pay your contractors a lot more promptly if most of the groundwork has already been done. The date (or dates) of payment should be clearly outlined and agreed upon by both parties in the initial contract. Alternatively, the wording in the agreement might require that you pay as soon as the contractor delivers the project. If the contractor is working on a one-off project, then you might stipulate an exact date for payment in, say, three months’ time. You should outline which day the payment should be made (i.e. ![]() If the agreement is ongoing, then it’s likely that your contractor will want to be paid on a weekly, bi-weekly, or monthly basis. Many contractors prefer to structure payment in different ways, so you need to be flexible. When you draft your initial agreement, you and your contractor should discuss and document the payment terms. We’ll dive deeper into these throughout the article. However, there are tax, compliance, and other considerations to factor in among these four steps, especially for international contractors. You send payment for the invoiced amount through a pre-agreed payment channel The contractor creates and sends you an invoice for the work The contractor delivers the work as agreed You create an agreement where the fee and payment structure are clearly outlined Paying independent contractors with Remote.How much should I pay an independent contractor?.How do I pay contractors in different currencies?.How do I stay compliant when paying contractors?.What are my tax obligations when paying contractors?.What contractor payment system should I use?.How do I pay an independent contractor?.
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