Contractor Hiring

What are remote contractors?

Remote contractors are self-employed workers that usually specialize in a skill, such as development, design, or content writing. Contractors, also known as freelancers, consultants, and independent workers, usually work on specific projects on a short-term or ongoing basis.

Why do companies hire remote contractors?

Hiring remote workers can help grow your business, since you’ll have access to specialized talent from around the world.

Perhaps you’re looking to hire a graphic designer to create an eBook, or a small team of developers to launch a new website. Maybe you need a copywriter to help your marketing team with a new ad campaign. Or a UI designer to give your new mobile application an enhanced user experience.

Small businesses, growing startups, and major enterprises partner with remote freelancers, consultants, and agencies every day. In general, companies take on short-term projects, though sometimes they help organizations with long-term projects that can take months or even years to complete.

Unlike full-time team members, remote contractors are not on payroll. They are responsible for filing their own taxes and keeping track of their earnings, usually through invoices.

Finding the right remote contractors

Finding the right contractor for a project can be tricky. The best freelancers’ schedules fill up quickly.

You can check out websites like Upwork, Fiverr, MarketHire (for marketers), and Turing (for developers). Ask them for their website or portfolio to see if their previous experiences match what you’re looking for.

For best results, try to get a referral from a friend or colleague. If you don’t have a mutual connection, you can ask the contractor for references.

Advantages of remote contractors

Working with remote contractors comes with a number of benefits.

Faster onboarding and offboarding. 

While finding and recruiting remote contractors can take some time, onboarding them is a relatively simple process. If you need to terminate the relationship, you can do so without needing to pay for benefits or severance.

Lower overhead for business. 

Contractors are not technically on payroll, so you will not need to pay their social security taxes or offer them benefits such as retirement or healthcare.

Specialization and expertise. 

Since freelancers are usually hired for their specialized skill sets, they are usually the best option for tackling projects, like launching a new website or rebranding a mobile application. They also tend to be more efficient.

Potential challenges of remote contractors

Oversight.

Contractors are technically self-employed, so it can be harder to keep track of their progress or their work habits, especially when you don’t work with them in person. Consider managing their progress using tools like Asana or ClickUp.

Misclassification penalties. 

Many businesses cut corners when hiring people by classifying workers as contractors instead of full-time employees. If your employee is participating in all-hands meetings, actively engaging in company events, and shares most of the responsibilities as your full-time team members, then they should be on your payroll. If they are based in a different country, consider partnering with an EOR service like Via to ensure that they receive the right benefits.

Compliances with local labor and tax laws. 

Laws regarding self-employment are always changing, so you want to make sure that you're up to speed on local labor laws when you’re paying remote workers across borders.

Paying remote contractors across the globe

One advantage of working with remote contractors is that you can team up with people from across the world with minimal effort.

However, paying freelancers in a different country can be tricky. Will you pay them in your home country’s currency, in theirs?

By partnering with Via, you don’t have to worry about write transfers, conversion rates, or delays. You can pay in the currency they requested and we’ll take care of the details for you.

FAQ 

Is it cheaper to hire an employee or contractor?

When you hire a full-time employee, you are responsible for paying for their benefits and payroll taxes, which means that their hourly rate might be lower. You usually need to pay them a higher hourly rate, since they need to pay for self-employment taxes and health insurance out of pocket.

How do contractors price a job?

Contractors usually price a job by how many hours they expect to work on a project, or how long they expect the project to take, depending on the type of work required. On the other hand, some freelancers take on projects at an hourly rate.

Can I work remotely as a contractor?

In most cases, you can work remotely as an independent contractor. However, some countries have laws that require contractors in different countries to register for a specific business license. It’s best to check with the company’s HR department if you’re working remotely in a different country.

Why do companies hire contractors instead of employees?

Companies hire contractors instead of employees because they tend to have specialized skills and are thus more efficient at taking on certain projects.