Sometimes you need just a independent contractor and not employee. This helps you minimize cost of outsourcing. The implication of hiring a vendor or contractor is that you will pay less tax and can legally avoid paying unnecessary benefits.
What independent contractors can do for you:
Independent contractors also likened to vendors helps deliver certain aspects of your operations without compliance taxes such as Personal income taxes, pension tax, social security tax , benefits taxes, training and insurance taxes .
With just a simple Withholding / VAT tax, HRLeverage provides Independent Contractor Management solution that help you avoid worker’s misclassification by our hiring them on your behalf, even without a local entity in the African country you can hire a vetted contractor.
HRLeverage Contractor Set up Process
- We understand your goal and the need for your choice
- We will vet several contractors and get their valid means of Identification based on KYC and KYB methodologies.
- We will setup an independent contract directly with the contractor
- and pay the Independent Contractor to the bank of choice in any country or currency.
- We will remit Withholding taxes or mandate contractors to provide evidence of tax remitted.
Why Companies Hire Us For Independent Contractor Management Solution
Most companies come to us because:
- Clients are interested in avoiding employee mis classification
- They need us to be involved in negotiations with the Independent Contractors and verify them before they commit money for local operations.
- They want to start with independent contractor to ascertain their suitability of their craft before they eventually get converted to employees.
- Client want manage the Contracting process while sustaining compliance with local
- Manage cost and other valuable resources instead of the risk in handling disputes and employees’ queries.
Frequently Asked Questions
- Is There A Maximum Duration For Engaging An Independent Contractor?
This varies from country to country in Africa. Independent contractors should be engaged for specific projects and for a short term. Mostly between 1 month to 11 months which can be renewable. You are to contact expert for a legal opinion on this.
- Can You Help Do Vendor Verification?
Yes we know you may need trustworthy contractor and vendors, we help you navigate the market and present 3 good vendors you can chose from at time.
- How Can We Pay Independent Contractor?
Mostly, independent contractors invoice the client and they are paid directly by the Client. The Contractor is obliged to declare all income, pay and file relevant taxes. It is however recommended that the Client clearly outlines both parties’ obligations in the Contractor Agreement
- What is the implication to your brand if contractors fail to pay taxes despite, you’re paying for them?
Depending of the country in question, however if the local authorities discover that the Contractors has not been remitting taxes such as withholding taxes or value added taxes. This will affect your brand and may be asked to pay the unpaid taxes with additional fines and penalties