International Contractor Compliance Checklist
Every compliance requirement for international contractor payments — W-8BEN, OFAC, KYC, and 1099-NEC — in one checklist.
Explore the global contractor payments platformPaying international contractors triggers multiple compliance requirements: IRS tax form collection (W-8BEN for non-US contractors, W-9 for US), OFAC sanctions screening before each payment, KYC identity verification per contractor, and 1099-NEC filing for US-based contractors earning over $600. Missing any of these creates legal and financial exposure.
Bitwage automates the core compliance stack: W-8BEN and W-9 collection through the contractor onboarding flow, OFAC screening on every payment before execution (not just at onboarding), and 1099-NEC generation at year end. The compliance dashboard shows the screening status of every contractor before you approve a payroll run.
Contractor vs employee classification is a separate but critical question. Misclassifying employees as contractors exposes companies to back taxes, benefits liability, and penalties. Bitwage is a payment platform, not an EOR — use it for verified independent contractors, not for workers who should legally be classified as employees. Our compliance checklist below covers the key classification factors alongside payment compliance.
What Bitwage Handles
- Contractor KYC and compliance verification
- W-8BEN and W-9 collection through self-service onboarding
- OFAC sanctions screening on every payment
- FX rate lock at payment approval
- Local rail routing and settlement tracking
Related Country Guides
Frequently Asked Questions
The W-8BEN foreign contractor form is an IRS form that foreign (non-US) contractors submit to declare their non-US person status. It establishes that US withholding tax does not apply to their payments. It is required for every non-US contractor you pay.
Bitwage runs OFAC sanctions screening against the OFAC SDN list before every payment execution — not just at contractor onboarding. If a match is flagged, the payment is held for review before any funds move.
US-based independent contractors who receive $600 or more in a calendar year require a 1099-NEC contractor tax filing. Bitwage generates 1099-NEC forms automatically at year end based on payment records.
The IRS uses a behavioral control, financial control, and relationship test for contractor vs employee classification classification. If you direct when, where, and how someone works, they are likely an employee. Bitwage is designed for independent contractors — workers with genuine independence over their work.
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