A growing number of companies have jumped on the freelance hiring bandwagon over the past five years — and the trend isn’t slowing down. There are several advantages for businesses when it comes to working with independent contractors, including access to a broader pool of expert talent than may be available locally . Effectively managing these freelancers, however, can be tricky.
Paying workers across borders isn’t always straightforward — fluctuating exchange rates and currency risks can throw a wrench into your plans. On top of that, you’ll need to navigate local regulations, especially around worker classification. When you add it all up, global hiring and workforce management can feel like a maze.
The good news is that there are solutions, and working with a Contractor of Record (COR) may top the list. CORs specialize in all-in-one contractor management, including ensuring full compliance with local labor laws.
That way you can tap into global talent without taking on the headaches and risks of trying to manage it all yourself.
Key takeaways:
- Navigating labor and tax laws across different countries is a major challenge for companies managing international contractors, with misclassification risks potentially leading to significant financial penalties and legal issues.
- While freelance platforms like Upwork and Fiverr connect you with talent, they charge substantial fees and lack the comprehensive compliance and payment management that a COR service provides.
- Contractor of Record providers offer multiple features, including automated contracts, multi-currency contractor payments (even crypto), and integrated compliance support, often with options to scale to full Employer of Record services.
Contractor of Record Services Comparison Quick View
What Is a Contractor of Record?
Like an Employer of Record (EOR) helps companies hire and manage full-time global talent, a Contractor of Record (COR) does the same for independent contractors.
A COR handles all the ins and outs of working with international freelancers, including setting up compliant contracts, managing payments, and ensuring your business complies with local laws. CORs also ensure contractors are paid on time and the proper tax forms are filed.
We're going to look at seven of the top COR providers. They all also offer EOR services, which you can utilize to convert a contractor to an employee or add full-time international employees to your global team.
RemoFirst
RemoFirst provides a cost-effective option for companies that want to hire, onboard, and ensure contractors are correctly classified in 150+ countries.
Our free contractor management tier includes:
- Onboarding and management
- Contract creation
- Time off management
- Time-tracking, including time sheet capabilities
- Analytics
- 24/5 support
So you can be confident your global talent is who they say they are, we also offer KYC verification. And RemoFirst can file 1099-NEC forms for any U.S.-based contractors on your behalf.
Want a more comprehensive option? For $25 per contractor per month, you can automate your payment processing and pay contractors in their own currency while only submitting one invoice for all workers.
In addition to contractor management, our EOR services include compliance, onboarding, global payroll processing, and benefits — including localized healthcare insurance — for full-time employees.
Oyster HR
Oyster uses built-in compliance tools and seamless payment workflows to support customers who use their COR platform. They also enable the direct conversion of contractors to full-time employees.
Companies that work with Oyster can pay their contractors in 120+ currencies. However, as a standalone platform, the service doesn’t integrate seamlessly with some popular HR and payroll systems.
Managing contractors through Oyster’s global platform costs $29 per contractor per month. Companies interested in their complete EOR services can use it to offer country-specific perks to their full-time employees. Take a more in-depth look at RemoFirst vs. Oyster.
Remote
Remote supports global compliance and contractor management in over 200 countries. The COR service can pay most invoices within three business days, in over 70 currencies.
Remote helps companies manage their teams’ payroll and HR data. They also provide legally vetted contract templates and simplify accounting with automated invoicing and tax forms.
Their COR services start at $29 per contractor per month. For $99 per month, Remote’s Contractor Management Plus plan includes indemnity protection up to $100,000 per contractor, giving you peace of mind regarding local compliance.
Some users report that Remote's chatbot and ticketing system can make customer support seem impersonal and slower than they expect. Still, their pricing — including for full-scale EOR services supported by locally owned legal entities — remains fairly transparent.
See how RemoFirst and Remote compare.
Deel
Deel helps companies hire contractors in 150+ countries using locally compliant contracts and data processing agreements.
The platform automates the collection and verification of tax and compliance documents, and can even assist with generating W-9s and filing 1099s for companies that employ talent in the U.S.
Payments and withdrawals in the contractor's preferred currency are supported through major providers like Wise, PayPal, and Revolut. They even offer cryptocurrency withdrawals via Coinbase.
It's worth noting, however, that Deel's contractor management fees start at $49 per contractor per month, which makes them higher than some competitors'. Some users have also reported unexpected or high exchange rates.
Deel’s full EOR services are built on internal compliance and payroll teams, supplemented with owned entities in certain global markets. For a side-by-side look at how Deel stacks up against RemoFirst, visit our comparison page.
Papaya Global
Papaya Global helps companies manage contractors for $30 per month per contractor across over 160 countries.
The platform enables users to generate country-specific contracts that can be reviewed and signed directly within the system. Papaya Global also simplifies adding contractors to payroll or converting them to full-time employees via its EOR services.
Papaya Global seeks to streamline invoice approvals and cross-border payments, allowing for single-click processing of verified invoices from all your contractors. Still, some clients report invoice errors and difficulty using the platform’s interface.
Papaya Global also offers specific support for immigration as well as transitioning contractors to full-time roles. Learn more about how RemoFirst stacks up against Papaya Global here.
Playroll
At a flat fee of $35 per contractor per month, Playroll helps companies hire and pay international contractors in over 180 countries. Their platform simplifies the management of global teams with automated contract creation and payments in over 50 currencies.
Playroll also helps companies navigate local labor laws, ensuring compliant contractor agreements. Plus, every client is assigned a dedicated Customer Success Manager.
Beyond contractors, Playroll also provides EOR services that help companies hire full-time employees globally. While the service offers free misclassification assessments, some users report difficulty logging into their accounts.
Multiplier
Multiplier’s platform for managing global freelancers starts at $40 per contractor per month. Their system combines onboarding, payments, compliance, and expense tracking in over 150 countries.
Multiplier uses in-house legal and tax experts to support compliance. Additionally, their automated system can create localized contracts and support payments in over 120 currencies, including cryptocurrency.
Though Multiplier integrates with popular HR platforms like Workday and BambooHR, some users find the interface difficult to navigate.
Multiplier’s complete EOR offering leverages a blend of local partners and legally owned local entities to provide HR services. For more, check out the RemoFirst vs. Multiplier comparison page.
Contractor of Record Alternatives
While working with a COR can streamline global contractor management, it’s not the only option. Many companies opt to utilize freelance hiring platforms, like Fiverr and Upwork, that connect companies with a pool of available global talent.
However, before hiring your next contractor on one of these platforms, it's essential to understand the full cost. In particular, the fees can be significant. Both clients and freelancers typically pay service fees, which can range from 5% to 20% on transactions, depending on the platform, contract value, and other factors.
Beyond the direct fees, these platforms can also introduce other complexities like managing multiple transactions and ensuring individual contractor compliance, which a COR typically handles for you.
Employ and Pay Your Global Team with RemoFirst
RemoFirst helps companies compliantly employ, manage, and pay contractors in 150+ countries and full-time employees across 185+ countries.
Our platform ensures adherence to local employment laws and tax regulations, taking the weight of administrative burdens and compliance risks off your shoulders.
RemoFirst offers an intuitive system to manage the onboarding process, automated payment processing in local currencies, and one-click invoice generation. We also provide legally compliant contract agreements, manage time-off requests, and even offer free identity checks for your hires.
Our streamlined approach saves you time and ensures global contractors are paid accurately and on time, without hidden fees.
Sign up for free to start managing your contractors and learn how RemoFirst can simplify your global contractor management.
