Bringing on a contractor may seem like a quick, easy fix to fill an immediate need, but it’s not without risk. Without proper considerations and detailed contractual agreements, you may find that, although you’ve classified your worker as a contractor, the local authorities in country have actually classified him or her as an employee for tax purposes.
How do you avoid this gray area of misclassification? Ensure that you are hiring only true contractors in the first place. Though each country will have specific employment tests, generally speaking, make sure to consider these guidelines for contractors vs. employees.