CONTRACTOR SET UP

When deciding to engage talent as contractors instead of employees, it’s important to understand the differences in responsibilities and compliance. Contractors operate independently and manage their own taxes, benefits, and social security.

Here’s a quick overview of what that means:

Contractors are responsible for:

• Paying their own taxes

• Securing their own benefits and insurance

• Providing their own equipment and tools

Employers should avoid:

• Providing equipment or reimbursing expenses related to work setup

• Offering employee benefits like paid time off or health insurance

• Treating the contractor like an employee by mandating strict schedules, fixed work locations, or micromanaging their process. That said, it’s smart to align on working hours, tools, and expectations to ensure smooth collaboration.

By understanding these distinctions, you can ensure a smooth and compliant working relationship with your contractors.

Let's get started!

1. Contractor Agreement Template: 

We’re sharing a sample Independent Contractor Agreement for Colombia you can use as a reference. This is not legal advice, and we’re not acting as legal counsel. You should review and adjust the agreement to fit your specific needs

🔗 CLICK HERE TO ACCESS 🔗

2. Global Contractor Payments via Payoneer

For paying your contractor across borders, we recommend Payoneer because it’s fast, secure, and offers competitive rates. 

Here’s the quick setup:
- Sign up for a free Payoneer business account at www.payoneer.com
- Once the talent sets up their account, share the email associated with your account for them to invoice you.
- Alternatively, from your Payoneer dashboard, send payments directly to their Payoneer account.