Question 1

What is an agent of record?

Accepted Answer

An agent of record (AOR) is a third party that helps organizations compliantly classify, onboard, and pay contractors worldwide.

Question 2

Are there any extra fees to be aware of?

Accepted Answer

Each Deel Contractor of Record contract requires a deposit of one month of a contractor’s payment. Since we have hired the contractor, we are legally obligated to pay them even if a client does not pay us. Because Deel takes on all the liability and the indemnification for a contractor, we ask for one month’s security of the contractor wages and a Deel fee to hold in case of emergency.

Question 3

How is Deel Contractor of Record different from traditional AORs, and how can it help minimize my risk of misclassifying employees?

Accepted Answer

There are plenty of AORs that provide contract hiring services. However, most are traditional staffing agencies, leading to longer setup times, higher fees, and time-intensive management, which often includes manual approvals and inconsistent reporting. Deel Contractor of Record takes traditional contractor hiring to a new level, allowing clients to [hire and manage contractors globally](https://www.deel.com/hire-contractors/) using Deel entities at record speed (up to 7 days) with zero employee misclassification risks.

Question 4

How to set up Deel Contractor of Record for your company?

Accepted Answer

Get in touch, and we’ll work to better understand your hiring goals and needs to determine your Deel Contractor of Record eligibility. If Deel Contractor of Record is a fit for your team:
1. We’ll create a Master Services Agreement between your business and Deel and a Scope of Work. Once our teams review and sign the contract, you can make as many Contractor of Record agreements as you need.
2. Next, we sign a Deel standard agreement with the contractor you’re onboarding with  Deel Contractor of Record. Once both parties (Deel and contractor) sign the contract, the contractor will get an invitation to join the platform.
3. After that, we handle the rest. [Global payroll services](https://www.deel.com/global-payroll/), invoices, termination, and more are all taken care of by us so you can dive into the international talent pool.

Question 5

How long does it take to set up Deel Contractor of Record?

Accepted Answer

Setup time varies depending on the time required for your business to review and sign a Master Service Agreement. Once complete, it usually takes up to 5 days to set up and onboard a contractor to the [HR platform](https://www.deel.com/hr/).

Question 6

What if Deel Contractor of Record isn’t a good fit?

Accepted Answer

Our experts will review the contractor’s location, job description, and work setup to determine Deel Contractor of Record eligibility. If the business relationship between your company and the contractor is not eligible for Deel Contractor of Record, we will suggest our available [EOR solutions to hire employees](https://www.deel.com/hire-employees/).