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Deel enabled us to hire 100 people that we probably wouldn't have been able to hire otherwise. Plus, it helped us reduce the number of workers leaving us. A lot of contractors were leaving when we couldn’t support them in being employees.

","person":"Leanne Schofield","position":"Head of People, Form 3","color":"yellow"},{"id":119,"__component":"content.faq","faqs":[{"id":687,"question":"What rights and protections do employees have compared to contractors?","answer":"

Hiring employees requires businesses to comply with local labor laws that define employee obligations, rights, and protections. These laws vary by location, as different countries have different employment contract requirements, minimum wages, employment taxes, and other regulations to comply with.

When onboarding international employees, you must make sure they have access to statutory employee benefits, such as healthcare, vacation pay, retirement plans, and more, depending on their country of residence

"},{"id":688,"question":"How do I convert a contractor in a country where I don’t have a legal entity?","answer":"

Companies that want to hire employees in compliance with local laws in countries where they don’t own an entity often choose employer of record services. EORs are organizations that act as middlemen between client companies and international employees, taking complete legal responsibility for the employee and covering the following:

Creation of locally compliant contracts
New employee onboarding
Salary payments
Benefits administration
Tax filing
Payslip distribution
Contract termination, and much more.

Some EORs, like Deel, can help manage workers even if they don’t have an employee status. You can also use our comprehensive contractor product to attract, hire, manage, and pay independent contractors in over 150 countries, while providing them with perks such as Deel Card to make sure they stay.

"},{"id":689,"question":"Can a US company hire a foreign independent contractor?","answer":"

Yes, US-based companies can hire foreign independent contractors and pay them using a plethora of methods, including hiring them through an employer of record.

While using contractor agreement templates can work well to a certain extent, it’s always better to use a tailored contract in compliance with local employment laws to make sure your contractor isn’t misclassified and doesn’t represent a liability for your company. It’s also important to provide the correct IRS tax forms to your foreign contractors, such as Form W-8BEN.

"},{"id":691,"question":"What are some consequences of incorrect worker classification?","answer":"

If tax authorities determine you’ve misclassified an employee as an independent contractor, you may face a range of penalties. Severe cases have resulted in jail time, but most violations of tax law and employment law result in monetary penalties.

"},{"id":690,"question":"How does Deel help protect your business from liabilities?","answer":"$1b"}]},{"id":7182,"__component":"content.rich-text","content":"

See also