How To Pay International Contractors: Regulations, Methods, & Best Practices
It’s for good reason. Huge cost savings depending on the location of contractors, access to a wide range of talented individuals, and an opportunity to scale the business beyond borders.
While this sounds enticing – there is one question that businesses have been asking. How do we pay these international contractors when they are spread around the world? We should also not forget that they come from different countries, with different currencies, and varying laws.
International contractors, also known as foreign or overseas contractors, are independent workers who provide services to a firm while residing in a different country from the firm. For example, a South African game developer who works for a US-based firm on contract basis is considered a global or international contractor.
They work on contract basis, manage their own taxes and benefits, and set their own hours. International contractors also decide which company to work for and as a result, a firm does not have much say over what their payroll and other work arrangements are.
