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Independent contractor invoice for corporations

Hey, it's Scott Orn at Kruze Consulting.  And today I'm answering the question,   how to pay international contractors. And, you know, we're  recording this in COVID times,   every company has gone totally virtual or remote.  And what we're seeing across the Kruze client   base is that folks are working with a lot more  international contractors. It makes a lot of   sense. There's incredible talent abroad, outside  of the United States. And so companies want to   take advantage of it. And so we're seeing  a lot of international contractor payments. So the first step I would say is make sure  they're a contractor. So these people may need   to be employees, especially if you're, you know,  working with a bunch of people in one country,   that country, you know, governments  really love payroll taxes. And so   oftentimes if you're building a big presence  and they can argue that you have tax nexus,   you may end up having to put them on payroll. You  can use a global PEO to do that, but that's really   the first test. Make sure they're actually  a contractor and they pass all those tests. Now, if they, if you have validated them  as contractors, there's a couple really,   really easy ways to pay them. My favorite  personally is just using bill.com.   I like bill.com because it allows you to upload  the invoice the contractor gave you into bill.com   and you can actually have some documentation, both  for your own records and for your accountant. It   makes booking all these contractor payments  in the correct periods so much easier. Also sometimes contractors are a little  disorganized. They might try to double   bill you or you pay them and they're complaining  they never got the money, whatever it is. You can   actually show the cash trail through bill.com and  bill.com has international wires now so you can   set all those, all that stuff up through bill.com.  So that's the first option. Another option is   paying your contractors just through the old  fashioned bank wire. And in some countries   that maybe don't have as developed banking  systems, or maybe there's a high chance of fraud,   then you do kind of, you do use a wire oftentimes,  but that doesn't have the advantage of uploading   the invoice and having that for a record, a  couple other options are Rippling and Gusto. Now Gusto is steadily making progress on this.  They've got Canadian international contractors can   be paid. One thinks that they'll probably have,  you know, the rest of the countries, international   contractors being able to pay through there.  Rippling does allow you to pay contractors   globally, which is really, really nice. There's  also a couple kind of contractor-centric companies   like Deel which is a new company, which  allows you to pay your contractors and   foreign employees in one place. They kind of have  like abstracted the global PEO and so it looks   like one interface to you, but the payments  can go through a PEO or they can go through   a wire or a different channel, but it all looks  the same to you, which is a pretty nice option. The other ways of doing it are good old fashioned,  PayPal. Like people use PayPal, TransferWise,   things like that. And then finally, maybe, you  know, depending on how you're thinking, but like   things like Bitcoin or Square's Cash app can also  be an option. We are careful about Bitcoin because   when you make payments with Bitcoin, that is a,  it's a currency that is moving around quite a bit. And so it makes the accounting a little bit  harder, but if you only have a couple and   they're the kind of people want to be  paid in Bitcoin, that's an option as well.   The key thing to remember is whatever  way you choose the pay your contractors,   you really need to have those invoices. The IRS  requires you to keep three years of invoices at   all times in case you're audited. And so you  need it for that reason. You wanna make sure,   it's gonna be impossible to track down  these invoices if you're ever audited. And secondly, to make your accountant like Kruze,  work a lot faster and keep your accounting bill   down. If we have access to those invoices, we can  see the period for which the expenses should be   booked and therefore we do not need to bug you.  We can also see if you're being double billed.   We can see if there was a deposit already  made. We can answer so many questions   on your behalf for those contractors  and save you a lot of time. So check out all of the, all the new  options there's, you know, on the PEO   front, global PEO front, there's Globalization  Partners. There is Deel, which is abstracting   global PEOs. There's a lot of options there,  but if you're doing just pure contractors,   you've got five or six options, all are  pretty easy, just be consistent and be careful   and best of luck to you. If you have questions on  this, hit us up at kruzeconsulting.com. Thanks.