Independent contractors can be a great way to leverage top talent and scale up your operations quickly. In this guide from Remote, you will learn how to pay your independent contractors quickly, easily, and in full compliance with the appropriate labor laws.

Managing and paying a distributed team requires a global payroll strategy, as well as an understanding of taxes, laws, and regulations in all the places where your contractors are. Hiring independent contractors also means paying close attention to classification, compliance, and risk management.

Despite the obstacles, paying independent contractors can be quite easy. (In fact, with Remote, you can sign up now and begin onboarding and paying contractors all over the world in minutes!)

To get you started, we have put together this helpful guide on everything you need to know about how to pay independent contractors around the world. For more help, check out some of our other guides:

Expert guide to contractor misclassification

How to offer benefits to independent contractors

When to convert a contractor to an employee

No matter what your questions on how to pay independent contractors (or where those contractors may live), Remote is here to help. Let’s take a look at everything you need to know to pay your contractors fairly, on time, and in the appropriate currency.

An independent contractor is a non-employee worker who provides goods or services to your company. Contractors work for themselves, usually with their own equipment, in their own spaces, and on their own time. They are their own employer, so you have limited control over them. In fact, in most countries, independent contractors are defined by this lack of employer control.

Companies use contractors for a variety of reasons. Working with contractors allows you to access talent and services outside of your company. Most of the time, independent contractors already have the necessary skills to complete your project, which means you don’t have to spend precious time on training. Contractors immediately increase your bandwidth without the extended onboarding period required for employees, allowing you to scale up or down depending on the situation. Contractors can also be very cost effective, because they don’t require benefits packages, paid time off, or company-withheld taxes. However, to account for this difference, contractors usually cost more than employees on a strict per-hour basis.

It can be tempting to classify workers as contractors because of the apparent ease and financial savings. However, if you don’t manage contractors correctly, the penalties of misclassification more than offset those savings — and those penalties are not only limited to monetary fines.

Read our guide to the dangers of contractor misclassification for more information.

What are the challenges of managing independent contractors?

Managing independent contractors can be challenging. Working with independent outsiders involves a lot of moving parts, including invoicing systems, complex labor laws and regulations, taxes, and classification. In addition, paying international contractors is a bit more complex than paying workers in your own country. Let’s go over the basic challenges.

Because contractors work for themselves, they track and manage their own time and output. Then, they invoice you for payment based upon whatever agreement you have in place, be that an hourly or per-project basis. So, before you can do anything else, you need a system to process invoices and pay contractors.

Paying a contractor isn’t like paying a bill. Contractors depend on timely and correct payments the way employees depend on their salary, so it’s vital to make payments quickly and reliably. The challenge is managing different currencies and banking systems, as well as local regulations that may mandate payment in local currency. All of this can cause delays, affecting your relationship with your contractor. Be sure your contractor payment tool can handle all your contractor payment needs to avoid unpleasant surprises.

Every country has its own local labor laws and regulations. For example, in some places, you need to provide safe working environments if the contractors ever come to your office. In other areas, contractors must be registered with the government before they can accept contracts as independent workers.

If you’re managing global workers, you have more than one set of rules to follow — and those rules can change without notice. Monitor the laws in all areas where you use contractors. If your company does not have the resources to monitor changing laws in all the countries where you hire contractors, be sure you’re working with a partner who has the necessary international legal infrastructure.

Managing tax requirements and relevant tax forms 

As with local labor laws, every country has its own tax requirements and tax forms. For example, US companies are required to file Form 1099 for each of their contractors. Failure to do so can result in penalties. These requirements can change from year to year. Be sure you are properly collecting and filing the appropriate forms on behalf of each contractor.

More countries are cracking down on contractor misclassification, so it’s more important than ever to get classification right. Minimize your risk of contractor misclassification by:

Researching classification criteria for each country where you hire

Paying contractors appropriately for contract work

Periodically reviewing the nature of your relationship with each of your contractors

In some cases, the country’s government may have a system in place for contractors to use. Be sure to work within that system to avoid entering into illegal contracts.

What are the key stages of the contractor payroll process?

The process of paying international contractors starts with classification and ends when you are no longer engaged with a particular freelancer. Here’s how it all works.

You must ensure that each contractor relationship meets the contractor classification criteria for that country. This is vital. If you misclassify employees as contractors, you risk serious consequences. Learn more about hiring employees and contractors in different countries around the world on Remote’s Country Explorer. 

You should have a legal agreement with your contractor in place before work begins. The contract should establish the scope of work, pay rate, and pay cycle. Your contract should also outline protections for your intellectual property, including who owns the work the contractor produces on your behalf.

Contracts may require specific changes depending on the country where your contractor resides and the country where your company operates. A legal team with local expertise should review contracts periodically to ensure they are up to date with local laws.

A streamlined, country-specific onboarding process is a key component for paying independent contractors quickly. Although onboarding contractors is easier than onboarding employees, you still need to collect appropriate information, make sure the contracts are signed, and get your new team members working.

Tactics for managing contractor invoices and payroll are unique to each company. Whatever your strategy may be, it is vital that you correctly pay your contractors for the work they perform. Pay workers in local currency where required by law or when the contractor requests to provide a great experience. If your contractor requests a non-local currency, like US dollars, be sure you can legally pay your contractor in that currency before agreeing. Once you have the accuracy part down, try to speed up your contractor payment cycle. Fast payment of invoices builds trust and improves your reputation among freelancer circles.

The other question is how much to pay contractors. Costs are specific to region, role, and industry. In most cases, the contractor sets the rate, and you decide whether you want to pay that rate or negotiate. Contractors are responsible for their own taxes, insurance, and overhead, so their rates are determined accordingly, which usually means more on a per-house basis than an employee performing the same tasks.

Periodic classification reviews will help you minimize misclassification risks. Classification laws change over time, both locally and internationally. Regular reviews help ensure you are following any updated rules and regulations. In some countries, the length of a relationship is part of the criteria for classification, which is another great reason to schedule recurring reviews of independent contractor agreements.

The substance of your relationship with a worker may change over time, necessitating reclassification from contractor to employee. Depending on the situation, your needs or the needs of the contractor may change and require reclassification. Periodic review will show you when relationships have shifted or need to shift toward employment relationships. 

You have much more flexibility terminating contractors than employees. Terminating an independent contractor can be as simple as not renewing a contract or not requesting new projects. However, if you have improperly classified a worker as a contractor, such termination could violate statutes and open you up to fines, penalties, and litigation.

A contractor who has been terminated may alert the authorities if they are upset with your company, which could draw more attention to whether the worker was classified correctly. This is another reason proper classification and periodic reviews are vital. Working with a partner with local expertise can help minimize risk.

How do I manage payroll for independent contractors?

There are several options for managing payroll for independent contractors. These include managing independent contractor payments in house; using a payment-only tool; or using with a contractor management platform.

If you handle things yourself, you will need a way to collect and manage invoices. This means staying up to date with any local laws that may affect your contract workforce. You will have to establish banking arrangements that allow you to pay workers in a timely manner in the appropriate currencies. Keep in mind that some countries require you to pay in local currency or through government-approved banks. While contractors are typically responsible for their own taxes, in-house contractor management may require you to manage certain types of taxes or withholding.

Simple contractor payment tools include online options like PayPal as well as direct bank or wire transfers. If you are comfortable handling the invoicing process outside the payments process, this may be a good option. Be sure to keep your records organized and accessible in case you need to review them later on a regulator’s request.

A full contractor management platform allows you to manage invoices, set up recurring invoices, generate tax forms, and pay contractors for services rendered, all in one place. In addition, a contractor management platform can help you understand your legal responsibilities to contractors in different areas and may be able to assist you with classification questions.

To see how it works, sign up for now to use Remote’s contractor management platform. With Remote, you can manage contractor invoices, payments, and documentation all in one easy-to-use tool. If you decide to convert a contractor to an employee, Remote can help you with those conversions as well.

How do I know if a worker is a contractor or an employee?

The exact criteria for classification varies from county to country. Typically, if you are hiring international contractors, the laws of the country in which the contractor resides take precedence over the laws in your own country. That means you will need to be familiar with relevant regulations.

In general, the classification of employee or contractor depends on the level of control the company has over the worker with respect to factors such as working hours, working location, equipment, etc. The more the company has a say in where or how a worker completes their tasks, the blurrier the line between contractor and employee becomes.

For more information, see Remote’s guide to contractor misclassification.

When is it time to reclassify a contractor as an employee?

How do you know when it’s time to reclassify a worker from a contractor to an employee? A contractor should be converted to an employee when they meet the criteria for an employment relationship or when both parties agree to make the change.

Are you in compliance with local laws and regulations with the relationship today?

Do you want to offer benefits to this worker?

Do you want the contractor to work on more sensitive projects?

Have you worked with the contractor for an extended period?

Do you face competition for the worker’s time?

Is the contractor asking to join your company as an employee?

For more information, see Remote’s guide on how to convert a contractor to an employee.

What are the risks of misclassifying independent contractors as employees? 

The risks of independent contractor misclassification can be severe. They include financial consequences, such as fees and penalties; litigation; and damage to your company’ reputation.

Improper classification comes with fines and penalties both for breaking the law and for failure to pay employment taxes you would have owed had the contractor been classified correctly from the start. Fines depend on the country, length of misclassification, and company intention. For example, in the Netherlands, fines increase if you are found to have willfully misclassified workers.

Back pay, taxes, and benefits compensation

Even if you misclassified the employee by accident, you will be responsible for unpaid taxes as well as relevant back pay and compensation for benefits the employee was denied. 

If you began working with a contractor two years ago and are found to have misclassified them the whole time, you will owe the government taxes and payments into social programs like Social Security for the entire two years. If they were paid at a rate below minimum wage, you will also owe back pay. You may also have to pay the contractor the monetary equivalent of required benefits such as paid time off, sick leave, or retirement contributions.

Misclassified workers may be entitled to sue you for damages, putting you at risk for judgements and legal fees. If many employees are involved, this can be a very costly risk.

If you are found to have misclassified workers, your company may be audited to determine the extent of the issue. Audits are expensive and time consuming when unprompted, but they can be especially grueling if investigators believe they are looking for something specific. If you are found to have additional violations, you may receive additional penalties and consequences.

Word gets around. Misclassification results in workers being denied pay and benefits. You may get a bad reputation for treating workers poorly, which can include negative press. This could limit your opportunities to engage with partners and investors if association with your brand becomes problematic.

For more information, see Remote’s guide to penalties of contractor misclassification.

Tax and compliance practices for paying independent contractors

In general, companies are not responsible for withholding taxes on contractor payroll or for paying payroll or unemployment taxes. However, requirements vary from state to state or country to country. In addition, your country of headquarters may require you to report payments made to contractors overseas. For example, US-based countries have additional reporting requirements when working with international contractors.

A local expert can guide you through tax and compliance considerations unique to each country. Click here to get started hiring international contractors.

Tax forms needed for US contractors and employers

In the United States, the Internal Revenue Service requires companies who pay contractors more than $600 to collect and file specific forms.

Collect Form W-8 BEN from contractors outside the US.

Collect Form W-8 BEN-E from contractors who bill through their own entities.

File Form 1099 for each contractor earning more than $600.

If this seems complicated, don’t worry. A partner like Remote can simplify contractor management. Here are some resources to help you get started:

What is a 1096 form? A guide for US employers 

How to pay independent contractors: The complete guide

The freelancing market has been experiencing explosive growth, and that trend is not showing signs of stopping. Freelancing offers a wide range of benefits and opportunities, including the flexibility of working travel options. In many cases, if you want to freelance, you just need a device to work on and an internet connection. As long as you have the right work permits and you can stay on top of the taxation ramifications of the digital nomad lifestyle, there’s not much stopping you from seeing the world while you freelance.

Freelancing abroad is very different from more traditional jobs. Aspiring international freelancers should invest time in researching what’s required to manage this lifestyle effectively and maintain productivity. 

It’s also important for potential business partners to be aware of how to manage their agreement with an international independent contractor. The dangers of contractor misclassification can cause catastrophic problems for these business relationships if not managed effectively.

Benefits of freelancing and contracting internationally

The major benefits of freelancing include flexibility, independence, and opportunities for change and growth. Freelancers can choose when and how to work. That means more control over your lifestyle and more capacity to spend time with friends and family when it suits you.

When you freelance you can work from virtually anywhere as long as you have a few simple tools. You’ll likely need an internet connection and an appropriate electronic device. This means you have a lot of choice for the way you work and where you choose to do so. You can work while you travel, you can work from a co-working space, a cafe, a hotel, or on top of an airplane tray table.

Additionally, freelance work can afford you the opportunity to adjust your work schedule to your liking. This can allow you to make your work schedule more compatible with other obligations and your lifestyle. 

Flexibility is particularly important in an increasingly globalized culture and economy, which allows for a greater range of opportunities related to things like travel, professional relationships, and personal enrichment. The benefit of flexibility can even help freelancers weather significant changes in their lives, such as necessary relocation.

While you will have to abide by any contractual agreements you make, freelancing allows you to operate as your own boss. As such, you will create your own policies, build your own schedule, determine what products or services you will offer, and decide how much to charge. While you might have less certainty than full-time employees, you’ll be in control of your workload and your time. 

As mentioned, when you freelance, you make the calls. If there is anything you don’t like about different aspects of your day-to-day work, you can make adjustments. For example, if you don’t like how often you are working, what type of work you are doing, or what type of client you work with, any changes you want to make are in your hands.

You can also delve into different career paths and determine how you might like to expand your business if at all. Freelancers associated with a company may even be able to experiment with longer term contracts and receive compensation for remote work. This allows both parties to generate an understanding of how best to work together with the option to transition to a full-time employee agreement if desired.

You may need to obtain a visa or work permit to travel while you work, depending on many different factors specific to each situation. These factors may include things like your country of origin, the type of work you are doing, and your background. Different countries will have different requirements related to granting permission for foreigners to enter the country.

Make sure you investigate the specific credentials required for you to work legally in whichever jurisdiction you are traveling into before you start your trip. 

It is also important to note that freelancing and self-employment are sometimes defined separately from other types of work considered for visas. The following are a few visas commonly used by international freelancers.

Before we outline the details of student visa requirements, note that freelancers should only pursue this visa if education is demonstrably a primary priority and freelancing is secondary. If you have side hustle or part-time contracting work, you may still be legally qualified with a student visa, but you can run into trouble if your work is deemed to be your primary focus.

This type of endorsement allows foreign students to study at the educational institutions of another country. A student visa can be a great option for freelancers who are also going to school. Special considerations that apply to international freelancers include:

Many student visas only allow for part-time work.

Some student visas may not allow you to work at all.

Some student visas may not allow you to work for a certain period after arrival.

Some student visas may only allow you to do certain types of work, such as on-campus opportunities.

Due to the possible restrictions, it may be best to only pursue this type of visa if your education abroad is your priority above work.

Work visas allow foreigners to reside in a country without citizenship due to employment opportunities available in the country. This may be available for a limited or indefinite period and you must ensure you have the legal right to perform any sort of work in the country (even freelancing for yourself). 

The specific requirements for obtaining a work visa depend on the country, and freelancers may not be eligible. Special considerations that apply to international freelancers include:

It is often difficult to obtain a work visa without sponsorship or employment from a large, well-established company within the country.

It may be helpful to form your own company within the country (but this comes with it’s own costs, risks, and time investments) 

This option may be particularly tedious and present many legal obstacles

You also introduce a suite of new taxation obligations if you choose to start your own company in another country

Overall, obtaining a work visa is often not the most feasible for freelancers who are not already closely affiliated with a company within the host country.

We want to emphasize the point above. Obtaining a work visa is not a simple ask and receive process. If you don’t have the legal rights to work, you are risking serious fines and penalties. Make sure you have the right work visas and permits before you leave for a so-called working holiday.

Some countries offer freelance visas, which may be a helpful option if you do not qualify for other types of permits or visas. These visas typically offer a limited window for freelancing within the country. Special considerations that apply to international freelancers include:

Freelance visas also may be called self-employment or entrepreneur visas.

As a relatively new development, relatively few countries offer this type of visa.

You may need to provide proof of minimum income. 

List of countries across regions that are currently offering a digital nomad visa: 

More countries may introduce these visas to incentivize digital nomads as freelancing continues to grow in popularity.

A travel visa allows you to visit a country for a specified time for either personal or professional reasons. This can be ideal for freelancers who are planning short-term visits to another country. 

Note that most travel visas do not give you the legal right to work in the country.

Legislators and taxation departments are focusing more and more on compliance in this area as the transition to remote work intensifies and digital nomadism becomes more mainstream. This means you are now more likely to be caught if you are working without the correct visa or permit.

Special considerations that apply to international freelancers include:

Some countries may not allow you to work during your visit.

While travel visas are often granted for a very limited time, some countries allow for extended stays.

Some countries offer a “working holiday visa,” which is offered to young adults to allow them to visit the country while simultaneously working to fund the trip.

To obtain a travel visa, you will often have to indicate whether the reason for your travel is primarily for leisure or business purposes.

Freelancers spending time abroad may be subject to unique tax obligations, depending on factors such as their business model, the type of work they will be doing, and what their origin and host countries are. 

It is important for both the freelancers themselves and businesses that hire independent contractors abroad to be aware of the unique tax considerations that may be involved in this scenario. 

A few unique considerations may include the following:

Most countries will require you to pay taxes while you reside there, regardless of the length or nature of your stay

Most countries do not require their citizens to continue paying taxes while staying abroad, however, some (notably the United States and Eritrea) still require their citizens to pay taxes while abroad

You will have to fill out any relevant tax forms related to your income and your foreign status

You will likely have to pay self-employment taxes and you may be eligible for deductions related to work-related expenses like space and materials.

An extended stay abroad may put you at risk for permanent establishment which carries significant tax ramifications

Relevant taxes and deductions vary widely depending on the host country, and therefore you must be aware of relevant tax regulations before you begin work in a new country, even as a freelancer.

A guide to freelancing and working abroad

Making payments is a pain, especially when you work with multiple contractors. 

Not only do you need to find the right payment provider (and add yet add another tool to manage), but you’ll need to carefully copy and paste account details, double check the right payment amounts, and triple check that everything is set up correctly. And if you get it wrong, it’s almost impossible to get that money back. Especially if you’re working with regular contractors for the same amount each month on an ongoing basis, the time involved in invoice approvals and payment administration can quickly add up.

At Remote, we’re making it easier for employers to onboard, manage, and pay contractors wherever they’re based in a legally compliant, simple way. 

Streamline admin with automatic approvals and payments

On the Pay contractors screen in Remote, you’ll now see a new option for Automatic invoice payments.

Here, you can set up automatic invoice approvals and payments for your contractors. 

Getting up-and running is as easy as 1-2-3! 

Select the payment method that should be used from the card and direct debit methods you’ve already set up. This is the method that will be used to pay any applicable contractor invoices. 

Next, you can set a maximum daily invoice amount per contractor. Any invoices under this threshold will be paid automatically. Invoices above this amount will need manual approval, to help prevent fraud.

Lastly, you can select the contractors whose invoices should automatically be paid! You can select individual contractors, or everyone you work with.

You’ll receive the same email notifications as usual, and invoices will appear in your dashboard. You can download invoices for your records and share payment receipts to make life easier for your finance team.

This new feature is live now for employers who pay in USD, with Euro and other currencies rolling out shortly.

With automatic payments in Remote, your contractors will be paid faster without the traditional delay.

No more waiting for approvals, reviews, and manual payments. Invoices are typically settled within 3-6 days after a successful payment, helping contractors to improve their cashflow situation, and helping you build stronger working relationships.

Not using Remote for contractor management yet? 

It’s easy to get started with fast, free, and flexible contractor management with Remote. Sign up today to onboard new contractors, ensure compliance with localized contracts, and pay contractors in over 130+ countries around the world. 

New: Automated contractor payments in Remote

If you are a contractor or you employ contractors in your business, you have definitely experienced the pains of invoicing and approvals. Today, Remote has made getting paid a little easier.

While invoicing is a key part of being a contractor (and necessary to avoid misclassification pains), managing invoices isn’t easy. Doing so usually means tracking charges and payments in spreadsheets or using other software — spending precious time every month on administrative tasks to just get paid. For an HR or finance administrator, time spent managing invoices from multiple contractors at the same time can quickly add up, not to mention the time needed to make the actual payments.

Fortunately, Remote is here to help. With our new invoicing and automation capabilities in Remote Contractor Management, we take care of the paperwork so you can reclaim the time you previously spent on invoicing and approvals.

Over the last few months, we’ve been working to solve key challenges contractors and employers face on payments and approvals.

One of the most common jobs for contractors is to issue an invoice using spreadsheets or word processing software before downloading as a PDF and uploading into Remote. 

Contractors can now create invoices inside Remote before submitting directly for approval. 

By sharing just a few pieces of information, like a description of the services provided, the payment amount, and the bank account for payment, an invoice is automatically generated and made available to preview. From there, contractors can save and submit invoices with one click.

When contractors work with an employer on an ongoing basis or on a fixed-term contract, they still need to submit regular invoices. While the invoice content might not change, it’s still a hassle to remember when to invoice. That hassle can sometimes lead to missed payment deadlines, inconveniencing everyone involved.

Contractors can now create automatic recurring invoices inside Remote.

Within seconds, contractors can set up recurring invoices. These are automatically issued to the employer on a customizable frequency. So whether you invoice clients once a week or once a month, you’ll always be on top of your invoicing schedule. 

As an HR professional, finance administrator, or even CEO, approving invoices can become a tedious task no matter how many contractors you manage. At best, it can take a few minutes; at worst, it can take hours and lead to late payments, damaging relationships with your contractors.

Employers can now automatically approve recurring contractor invoices.

We have made it easy for employers to approve recurring invoices automatically. Perfect when working with long-term contractors, it now takes just one click to approve invoices on an ongoing basis. 

Payment requests are automatically generated, so you know exactly how much you’ll be paying out. As usual, submit a single payment and we’ll distribute the right amounts to every approved invoice. 

We’re happy to answer all your questions related to contractor management and invoicing.

Can contractors still submit invoices created outside of Remote?

Yes. Contractors can still use invoices they’ve created in other software and upload into Remote for approval and payment. However, they won’t be able to create recurring invoices or make those invoices available for automatic approval. 

Yes. Recurring invoices can be edited by contractors before the next invoice is issued. If a contractor needs to amend details, they must delete the issued invoice and start again.

No. Approved invoices are added to an upcoming payment request, which will need to be paid by ACH, SEPA, or SWIFT wire transfers. We’re looking at ways to automate these where possible and legal to do so.

Get started managing contractors with Remote

From helping companies onboard and pay contractors around the world to reducing manual effort and staying compliant with international law, Remote Contractor Management makes it easy to pay and manage your global team.

Get started for free today to see how Remote can help you manage and pay contractors at home and abroad. Remote makes it easy to to create and manage payments and invoices with a single click. We offer a variety of payment methods in more than 100 currencies.

Contractor management: Invoicing automation, directly in Remote

Contractors make up a large portion of today's global workforce. Hiring contractors is a great way to test international markets as you begin your global hiring journey. It can also create questions about compliance, cross-border payments, and more. 

That’s why we’re excited to announce the launch of our latest Contractor Management capabilities that enable you to onboard, pay, and manage contractors across the world. 

Hiring contractors is an easy way to grow your business, add extra bandwidth, and move faster. Overall, contracting provides flexibility to both workers and employers. 

Working with contractors can also be an administrative minefield! Not only do you need to understand local labor and tax laws, keep up-to-date with misclassification rules, but also work out how to manage international payments. There’s also the question of how you build trust and connection with a distributed workforce, made up of both contractors and full-time employees. 

Remote’s Contractor Management capabilities helps companies reduce manual admin work and makes it simple for contractors to get paid compliantly and on time. Let’s find out how.

Onboard contractors compliantly in minutes, with customizable contracts

Operating without legal agreements between you and your contractors could leave both parties open to risks. If you’re using generic contracts for your international contractors today, you may not have adequate protection - leaving you open to unnecessary risks.

Remote now offers 17 customizable contracts directly in our platform, localized to meet each country’s labor laws. These protect your business against legal claims, intellectual property transfers, and potential misclassification disputes. 

In addition to our localized contracts, our in-house legal experts have created companion guides to help you understand the laws in each country in language you can understand. Each guide details relevant laws regarding contractor employment, plus information on each country’s misclassification rules. Our guides save you time and money that would be spent working with outside counsels on legal contracts and advice. 

Where necessary, contracts are available in multiple languages and can be completed in Remote for a seamless signing experience. Just complete the fields, sign, send to your contractor, and receive back your fully executed contract. 

Save time with automated invoicing approvals and payments

Whether you work with one contractor or 500 contractors, invoice approvals and payments require a lot of effort to ensure they’re paid on time and in the correct currency. 

We’ve made this process effortless. Remote invoice automation makes it easier than ever to manage your invoices and payments and put them on autopilot. 

Your contractors can create their invoices inside Remote, so there’s no need to use spreadsheets or separate software. They can also be set up to recur on a regular basis—perfect for long-term contracts.

Invoices are then ready for approval in your Remote dashboard. Approve with one-click and they’re added to your next payment request. Soon, you’ll be able to set up automatic approvals, with payments linked to credit cards or direct debit payments methods.

Send one payment for all contractors in your local currency

Processing international payments is usually more difficult than it needs to be. Even the smallest payments are hit with hidden transaction charges and inflated conversion rates.

With our financial network, Remote removes the complexities of international payments. You can easily manage and approve one-off and recurring invoices using the Remote platform.

Send one payment request to Remote in your preferred currency, and we’ll automatically distribute funds to pay your contractor invoices. Paying all of your local and international contractors really is that simple. 

Focus on your business, not contractor administration

Remote makes contractor management fast, flexible, and easy for businesses of all sizes. 

Whether you’re growing your business with contractor support, or looking to simplify your existing contractor management process, get started with Remote today. 

Fast, flexible, and simple contractor management with Remote

Does your company work with external contractors? Is your company based in the United States? 

If you answered “yes” to both questions, you’re going to like what you’re about to read.

We’re excited to share the details of our new tax compliance feature for Remote’s Contractor Management platform, specifically designed to help HR and finance administrators meet IRS rules. 

You probably already know about the income reporting regulations required by the Internal Revenue Service (IRS) — and you definitely appreciate how challenging it can be to stay on top of the taxation requirements when managing independent contractors. Now, Remote makes it easier than ever to manage your US contractors compliantly.

Let’s look at the latest IRS regulations and see how Remote takes the manual work out of this compliance challenge.

Contractor tax information US companies need to collect

IRS rules require companies to report to the government how much the company has paid to contractors who earned more than $600 over the tax year. This means the company must first collect the contractor’s taxpayer information, including their taxpayer identification number and other personal details. 

Companies must collect Form W-9 from each contractor within the US.

James Doman-Pipe

Articles published on Remote by James Doman-Pipe