Payroll & Benefits Infrastructure · Use case

Run global contractor payments

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Short answer

Paying contractors abroad combines two jobs: compliance — agreements, tax forms, classification — and payments in local currency. Providers bundle both; the risk to manage is misclassification, where a contractor should legally be an employee.

What this use case is

Paying contractors abroad combines two jobs: compliance — agreements, tax forms, classification — and payments in local currency. Providers bundle both; the risk to manage is misclassification, where a contractor should legally be an employee.

Who builds this

HR platforms
Marketplaces for freelance work
Companies with distributed teams
Staffing platforms

What your customer sees

  1. 1Contractor onboards with documents
  2. 2Submits invoices or gets paid on schedule
  3. 3Receives funds in local currency

How Payroll & Benefits Infrastructure solves it

1

Contractor onboarded with agreement and tax forms

Contractor onboarded with agreement and tax forms

2

Classification checks where offered

Classification checks where offered

3

Invoices or payment schedules approved

Invoices or payment schedules approved

4

Funds converted and paid via local rails

Funds converted and paid via local rails

5

Documents stored and tax forms produced

Documents stored and tax forms produced

Want to have

  1. Country coverage
  2. Contract templates
  3. Tax form collection
  4. Local payouts
  5. Invoice approval
  6. Document storage

Optional

  1. Classification risk checks
  2. Conversion to employer of record
  3. Expense handling

Design decisions

Model

Contractor payments only
Plus employer of record

cost versus handling misclassification risk.

What to put in your RFP

Countries

  • Countries

Compliance documents

  • Compliance documents

Payouts and FX

  • Payouts and FX

Approvals

  • Approvals

Commercials

  • Commercials
Add these to an RFP

How to evaluate providers for this use case

  1. 1Country coverage
  2. 2Compliance support
  3. 3Payout cost and speed

Pitfalls

  • Misclassification
  • Hidden FX margins
  • Documents stored inconsistently

What providers will ask you

  1. Contractor countries and counts
  2. Payment frequency

Other Finlane categories that cover parts of this

This use case is solved mainly with Payroll & Benefits Infrastructure. These categories cover specific parts of it and can be tendered alongside it.

FX & Cross-Border Payments

Currency conversion and payouts

KYC, KYB & Identity

Contractor verification

Frequently asked questions

Solving this with another category instead? See Pay international contractors and suppliers

Other Payroll & Benefits Infrastructure use cases

Embed payroll in a vertical SaaS

Let SMB customers run payroll, calculate taxes and file returns from inside your product.

Offer earned wage access

Give employees on-demand access to accrued pay, funded by the employer or a partner.

Distribute benefits and reimbursements

Push meal, wellness or expense benefits to employees via wallets, cards or vouchers.

Scope run global contractor payments with Payroll & Benefits Infrastructure providers

Scope this use case