A contractor of record (CoR) is a company that signs the service agreement with an independent contractor on behalf of a hiring company, pays the contractor and handles the compliance work of that engagement: classification checks, tax forms and the records behind each payout. The hiring company signs one agreement with the CoR and receives one invoice for the contractors it pays.
TL;DR
- A contractor of record signs with each independent contractor, pays them and keeps the paperwork. The hiring company directs the work and signs one agreement with the CoR.
- Under contractor management, the hiring company signs each contractor agreement itself and keeps the classification risk. Under a contractor of record, the provider signs.
- “Agent of record” means the same as contractor of record at some providers and a three-party payment arrangement at others. The test is who signs with the contractor.
- Most providers price a contractor of record per contractor per month, from $99 to $400. Kleos charges $50 whenever you pay a contractor.
- A contractor of record reduces misclassification risk but cannot remove it, because classification depends on how the work is actually done.
Kleos publishes this article and is a contractor of record. Prices for other providers are taken from their own pages and help centres, checked October and November 2026.
What is a contractor of record?
A contractor of record is a company that becomes the contracting party for an independent contractor who works for another business. The CoR signs a service agreement with the contractor, checks that the engagement fits independent contractor status, collects tax forms, pays the contractor and keeps the records. The hiring company directs the work and pays the CoR.
The term contractor of record means the party on record as the contractor’s counterparty: the company named in the contractor’s agreement, invoices and tax forms, while another business directs the work.
An independent contractor is a person in business for themselves who provides services under a contract, invoices for the work and pays their own taxes. The hiring company is the business that receives the work and pays for it.
The model exists because engaging contractors in several countries means several contract laws, several sets of tax forms and several payment routes. With a contractor of record, the hiring company signs one agreement and receives one invoice, and the CoR handles the agreement with each contractor in their country.
Kleos provides contractor of record services in 200+ countries, through its own entities. Kleos signs a locally compliant agreement with each contractor, runs KYC and classification checks before the work starts, and pays each contractor in their own currency.
How do contractor of record services work?
Contractor of record services work in five steps: the hiring company signs one agreement with the CoR, the CoR checks and signs each contractor under a local agreement, the CoR collects tax forms, the company funds the payouts, and the CoR pays each contractor and keeps the records.
- One agreement with the hiring company. The company signs a service agreement with the contractor of record that covers every contractor it will engage.
- Checks and a local agreement with each contractor. The CoR verifies the contractor’s identity, checks that the engagement fits independent contractor status, and signs an agreement that covers scope, payment, confidentiality and the assignment of rights in the work.
- Tax forms. The CoR collects the forms the payer needs. For a US payer, that is usually Form W-8BEN from a foreign individual, W-8BEN-E from a foreign company, or W-9 from a US person.
- Funding and one invoice. The hiring company funds the payouts and receives one invoice from the CoR covering the contractors it paid.
- Payouts and records. The CoR pays each contractor in their currency and stores the agreement, the forms and the payment record together.
At Kleos, a contractor is ready to work 60 seconds after the invite. Contractors choose a local bank transfer, SWIFT, SEPA, a card or USDT, and pay nothing to withdraw. Payouts to a card or USDT arrive in about 5 minutes, and SWIFT payouts take a day. How to pay contractors in USDT or USDC covers what a stablecoin payout involves, and how US companies pay international contractors covers which tax form applies to whom.
Is a contractor of record the same as an agent of record?
A contractor of record and an agent of record are sometimes the same. Providers use “agent of record” (AOR) for two arrangements: at some, it is another name for a contractor of record, and the provider signs with the contractor; at others, it is a three-party setup where the hiring company signs with the contractor and the provider handles payments.
The test is who signs the service agreement with the contractor, because that party holds the agreement and the first line of classification work.
| Arrangement | Who signs with the contractor | Who handles classification checks |
|---|
| Contractor of record | The provider | The provider |
| Agent of record, used as another name for contractor of record | The provider | The provider |
| Agent of record as a three-party arrangement | The hiring company | The hiring company, with the provider’s tools |
| Contractor management | The hiring company | The hiring company |
Rise, for example, uses “agent of record” for a tier in which Rise is the legal contracting entity, from $299 per contractor per month.
The difference is easy to miss. Companies switching providers often cannot say which of the two arrangements they were on. Read the agreement you signed: if it names each contractor as your counterparty, the contract sits with you.
Contractor of record vs contractor management: who signs the contract?
Contractor of record and contractor management differ in who signs with the contractor. Under contractor management, the hiring company signs each contractor agreement, usually from the platform’s template, and keeps the classification risk. Under a contractor of record, the provider signs the agreement, runs the classification checks and stands between the company and the contractor.
| Question | Contractor management | Contractor of record |
|---|
| Who signs with the contractor | The hiring company | The provider |
| Who checks classification | The hiring company | The provider, before the engagement starts |
| Who collects tax forms | The hiring company, through the platform | The provider |
| What the hiring company signs | One agreement per contractor | One agreement with the provider |
| Published prices | $5 to $49 per contractor per month | $99 to $400 per contractor per month, or $50 per payout at Kleos |
Contractor management prices: Papaya Global $5, Oyster $29, Remote $29 and Deel $49 per contractor per month, checked October 2026.
The price gap is the gap in what the provider takes on. A common mix-up: a buyer compares a contractor-of-record price with another provider’s contractor management tier, which leaves the agreement and the risk with the buyer. Global contractor management software explains how the models differ in practice.
Contractor of record vs employer of record (CoR vs EoR): which one do you need?
A contractor of record engages independent contractors under service agreements. An employer of record (EoR) employs people under local employment contracts and runs their payroll, income tax, social contributions and statutory benefits. People in business for themselves belong under a CoR, and people who work as employees belong under an EoR.
An employer of record is a company that becomes the legal employer of a worker in the worker’s country, so that a business without a local entity can employ them.
| Question | Contractor of record | Employer of record |
|---|
| Relationship | Service agreement with an independent contractor | Local employment contract with an employee |
| Taxes | The contractor pays their own; the CoR collects tax forms | The EoR withholds income tax and pays employer contributions |
| Benefits | None required by law | Paid leave and statutory benefits under local law |
| Ending the engagement | On the terms of the service agreement | Under local employment law, which can require notice |
| Price at Kleos | $50 whenever you pay a contractor | From $200 per employee per month, by country |
When a contractor’s work starts to look like employment, the engagement belongs under an employer of record. Kleos runs contractors and employees on the same platform, helps decide between a CoR and an EoR per role and per country, and moves a contractor to its employer of record without re-onboarding. Converting does not settle any exposure from the period the person worked as a contractor. EOR services for US startups converting contractors covers that step, and PEO vs EOR covers companies with their own US entity.
How much does a contractor of record cost?
Contractor-of-record pricing follows two models. Most providers charge per contractor per month, with published prices from $99 to $400. Kleos charges per payout: $50 whenever you pay a contractor, and nothing in a month without a payout. For contractors paid once or twice a month, the per-payout model costs less.
| Provider | How the fee is charged | Published price | 10 contractors paid $3,000 once a month |
|---|
| Deel | Per contractor per month | $325 | $3,250 |
| Kleos | Per payout | $50 whenever you pay a contractor | $500 |
| Multiplier | Per contractor per month | $400, billed annually | $4,000 |
| Papaya Global | Per contractor per month | From $199 | From $1,990 |
| Payoneer Workforce Management, agent of record | Per contractor per month | From $99 | From $990 |
| Remote | Per contractor per month | From $325 | From $3,250 |
| Rippling | Quoted | Quoted per country | Quoted |
| Rise, agent of record | Per contractor per month | From $299 | From $2,990 |
| 4dev | Percentage of each payout | 3% or less per payout | Up to $900 |
Sources: each provider’s own pricing pages and help centres, checked October and November 2026. Multiplier lists $400 on its pricing card and $399 in its pricing FAQ. Currency conversion and fees on the contractor’s side are not included.
Currency conversion can cost more than the platform fee. Kleos adds 2% over the mid-market rate only when the payout currency differs from the funding currency, and contractors pay nothing to withdraw. Contractor payment pricing compared adds payment tools and contractor-side fees.
Does a contractor of record remove misclassification risk?
A contractor of record reduces misclassification risk but cannot remove it. Tax authorities and courts classify a worker by how the work is actually done, and an agreement signed by a CoR does not change that test. What a CoR changes is who checks the engagement at the start, who holds the agreement and who keeps the records.
Under the Kleos contractor-of-record model, misclassification liability for the contractors Kleos engages sits with Kleos.
Misclassification means treating a worker as an independent contractor when, under the law that applies to them, they are an employee.
In the US, the IRS applies common-law rules grouped into three categories: behavioral control, financial control and the type of relationship between the parties. Under the Fair Labor Standards Act, the Department of Labor published a proposed rule on February 27, 2026 that would rescind its 2024 rule and return to an analysis close to its 2021 rule, which focuses on control over the work and the worker’s opportunity for profit or loss. The comment period closed on April 28, 2026. Federal rules do not replace state tests such as California’s ABC test.
As of November 2026, the Department of Labor rule remained a proposal: a final version had cleared White House review but had not been published in the Federal Register.
In the UK, the off-payroll working rules, known as IR35, apply when a contractor provides services through their own company, such as a personal service company. Since 6 April 2021, medium and large private-sector clients decide whether the rules apply and give the contractor a status determination statement; with a small client, the contractor’s company decides. The rules do not apply to a client based wholly overseas.
Outside the US and the UK, each country applies its own test. The signals that usually point to employment are the same: the company sets the hours and methods, the person works for one client indefinitely, and pay does not depend on the result.
Who owns the IP when a contractor of record signs the agreement?
When a contractor of record signs the agreement, rights in the contractor’s work pass in a chain: the contractor assigns them to the CoR, and the CoR assigns them to the hiring company. The hiring company owns the work only when both links are in writing and hold up under the law of the contractor’s country.
An IP assignment is a written transfer of ownership of intellectual property, such as code, designs or text, from the person who created it to another party.
The second link is the one companies forget to check. If the agreement between the CoR and the hiring company does not pass the rights on, the work stays with the CoR. Ask to see both clauses before the first contractor starts.
Rules differ by country. In some countries, authors keep moral rights that cannot be transferred, so agreements waive or license what the law allows. Kleos includes an IP assignment in each contractor agreement, tailored to the contractor’s location, and passes the rights from the contractor to Kleos to the client.
IP protection for global contractors compares how six platforms handle the chain, and how IP travels through a contractor platform covers game studios.
Which companies offer contractor of record services?
Contractor of record services are sold by global workforce platforms such as Deel, Kleos, Multiplier, Papaya Global, Remote and Rippling, and under the agent-of-record name by Payoneer Workforce Management and Rise. The providers differ in who signs with the contractor, how much liability they take on, and whether they charge per contractor per month or per payout.
| Provider | Who signs with the contractor | What the provider says it takes on | Published price |
|---|
| Deel | Deel, under its contractor-of-record tier | Presented on its pricing page as the way to minimise contractor risks | $325 per contractor per month |
| Kleos | Kleos, as contractor of record | Misclassification liability for the contractors it engages, KYC and tax forms, IP assignment in each agreement | $50 whenever you pay a contractor |
| Multiplier | Multiplier, under its contractor-of-record tier | Not detailed on the pages checked | $400 per contractor per month, billed annually |
| Papaya Global | Papaya Global, under its contractor-of-record tier | Described by Papaya as carrying uncapped indemnity | From $199 per contractor per month |
| Payoneer Workforce Management, agent of record | Not stated on Payoneer’s pages | Support with contracts and with misclassification risk | From $99 per contractor per month |
| Remote | Remote, which contracts with and pays the contractor directly | Uncapped indemnity, with misclassification and local compliance, per Remote | From $325 per contractor per month |
| Rippling | Rippling, under its contractor-of-record service | Agreements Rippling describes as lawyer-vetted, with IP protection | Quoted per country |
| Rise, agent of record | Rise, as the legal contracting entity | Presented by Rise as reducing misclassification risk | From $299 per contractor per month |
| 4dev | 4dev, as contractor-of-record | Not compared here | 3% or less per payout |
Sources: each provider’s own pricing and product pages, checked October and November 2026. Listed alphabetically.
The column that decides most is the second one. A provider that signs with the contractor holds the agreement and the first line of classification work; a provider that only supports the contract leaves both with you. Ask each one for the agreement it would sign before comparing prices.
When does a company need a contractor of record?
A company needs a contractor of record when it engages independent contractors in countries where it has no entity and does not want to sign, check and pay each one itself. The model fits best when contractors sit in several countries, finance wants one invoice, and the work creates IP the company needs to own.
These are the situations Kleos sees most often:
- Contractors in several countries, paid through separate tools. Each country brings its own agreement, tax form and payment route, and a contractor of record replaces them with one agreement and one invoice.
- Developers writing code. Companies paying developers ask about IP first, because the code is the asset and the assignment chain decides who owns it.
- Contractors who need documents for a visa. Contractors paid through Kleos can download their contract, invoices and payment history and use them in visa applications, for example for Spain’s digital nomad visa.
- A provider whose arrangement nobody has checked. Companies switching from another platform often find they were signing each contractor themselves.
A contractor of record is the wrong fit in three cases. A company that wants its own direct agreement with each contractor needs contractor management or a three-party arrangement. A person who works like an employee needs an employer of record. And one contractor in one country, already under contract, can often be paid more cheaply through a transfer service.
What should you check before choosing a contractor of record?
Before choosing a contractor of record, check six things in the agreement itself: who signs with each contractor, who carries misclassification liability and up to what limit, whether both links of the IP chain are in writing, which countries are covered, what the contractor pays to withdraw, and how the engagement ends or moves to employment.
- Who signs with the contractor. The contractor’s agreement should name the provider as the counterparty. If it names your company, you are on contractor management or a three-party arrangement.
- Liability and its limit. Some providers cap the indemnity they offer for misclassification, and some describe it as uncapped. Read the cap and the exclusions as well as the headline.
- Both links of the IP chain. The contractor assigns rights to the provider, and the provider assigns them to you. Ask to see both clauses.
- Country coverage. Check that the provider can engage contractors in each country you need, and which of its entities signs there.
- The contractor’s side. Ask what lands in the contractor’s account after withdrawal fees and currency conversion.
- The exit. Check how the engagement ends, how records are handed over, and how a contractor moves to an employer of record.
At Kleos, misclassification liability for the contractors it engages sits with Kleos, contractors pay nothing to withdraw, and a contractor moves to its employer of record without re-onboarding.
Frequently asked questions
Is a contractor of record legal?
Yes. A contractor of record is a company that contracts with an independent contractor and provides the contractor’s services to a client, a common subcontracting structure. The arrangement holds only while the person works as an independent contractor in practice. If the work looks like employment, the CoR agreement does not change the person’s status under local law.
Does a contractor of record pay the contractor’s taxes?
Usually not. An independent contractor pays their own income tax and social contributions in their country. The contractor of record collects the tax forms the payer needs, such as Form W-8BEN for a US payer, and applies withholding where the law requires it. Kleos takes on both for the contractors it engages.
Can a contractor working through a contractor of record become an employee?
Yes, through an employer of record. Kleos runs contractors and employees on the same platform and moves a contractor to its employer of record without re-onboarding, from $200 per employee per month, depending on the country. Converting covers the person from the conversion date onward and does not settle exposure from the contractor period.
Do contractors pay fees when they are paid through a contractor of record?
It depends on the provider. Kleos charges contractors nothing to withdraw. Deel’s contractors pay $5 to withdraw across borders and $5 to $10 over SWIFT. Payoneer account holders pay $1.50 per same-currency withdrawal and 1.2% to 4% when the withdrawal involves conversion. Ask each provider what lands in the contractor’s account.
How long does it take to start with a contractor of record?
It varies by provider and country. At Kleos, a contractor is ready to work 60 seconds after the invite, and identity and classification checks run before the first payout. Payouts to a card or USDT then arrive in about 5 minutes, and SWIFT payouts take a day.
Can a contractor of record help a contractor prove their income?
It can provide the documents. A contractor paid through a contractor of record has a signed agreement, invoices and a record of every payout. Contractors paid through Kleos can download these and use them in visa applications, for example for Spain’s digital nomad visa. For a mortgage, banks in many countries prefer a local employment contract, which an employer of record provides.
How much does Kleos charge as a contractor of record?
Kleos charges $50 whenever you pay a contractor, with no monthly fee per contractor and nothing in a month without a payout. Kleos adds 2% over the mid-market rate only when the payout currency differs from the funding currency. Contractors pay nothing to withdraw.
List your contractors by country and by how often you pay them, then price both pricing models on those two numbers.
Last updated: November 2026.
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