Hiring independent contractors worldwide using Multiplier’s Agent of Record solution protects you from misclassification risks that vary from region to region.
To get started with Multiplier’s AOR, you must:
Sign the MSA and submit the worker classification assessment.
Enter the contractor’s details on the platform.
Review the ‘Order Form’ and send it to the signatory for signature.
Once the Order Form is signed, an ‘Independent Contractor Agreement’ will be sent to the contractor for signature.
The contractor must sign up on Multiplier and submit their details.
Once verified, the contractor will be activated on the platform.
Continue reading for a step-by-step guide on how to onboard a contractor on the platform.
Pre-onboarding:
If you are onboarding an AOR contractor on Multiplier for the first time, you must first sign the MSA and submit the worker classification assessment. The assessment is a set of questions regarding your engagement with the independent contractor.
Depending on the assessment results, you can take the next steps to continue onboarding.
Step 1: Click on the Hire & Onboard section on the sidebar.
1.1: Select Contractor.
Step 2: Select the country & state (wherever applicable) of the contractor.
Step 2.1: Next, you must select AOR as the type of engagement with the contractor among the 2 options:
Agent of Record: A solution that mitigates misclassification risks and, once selected, makes Multiplier the Agent of Record (AOR) of the contractor.
Pay a contractor: A solution that facilitates contractor invoicing and payments in over 120 currencies.
2.2: Click on ‘Continue’.
Note: AOR is not applicable in a few countries for compliance reasons.
Step 3: Enter the basic details such as Name, Gender, Email ID, City, Address, Phone Number, Pincode, Agreement Start and End Date, Job Title, Contract Duration, and Job description/Scope of work.
3.1: Once all the details have been filled, select Continue from the lower right.
Step 4: Next, you must fill in the compensation details.
4.1 Select the billing type you want for the contractor. You get two options:
Fixed rate: A fixed amount is paid every pay cycle, either monthly or semi-monthly.
Pay-as-you-go: The amount is paid hourly or daily based on the work done in a given period.
4.2: Enter the billing rate of the contractor. This will be the amount the contractor charges for their services for a specific duration. You get two billing rate options for each contractor type:
Hourly, Daily billing rate options for Pay-as-you-go contractors.
Semi-Monthly, and Monthly billing rate options for Fixed rate contractors.
4.3: Select the payout frequency. This is the frequency at which the contractor will be paid for their services. There are two options available for payout frequency:
Semi-monthly
Monthly
4.4: Select the invoice generation date in the Automatic invoice generation section.
Note: The automatic invoice generation feature is only applicable for fixed-rate contractors. If you disable automatic invoices for fixed-rate contractors, contractors would have to raise the invoices manually based on their work schedule
Pay-as-you-go contractors must always raise the invoices based on their working hours/day.
The automatic invoice generation section gives you one of two options depending on whether it is enabled or disabled:
Automatic invoice generation is enabled - The invoice will be generated on the selected dates.
Automatic invoice generation is disabled: On the selected date, contractors will receive reminders to create invoices manually.
Note: For fixed-rate contractors, this will be the date the invoice is automatically generated. For Pay-as-you-go contractors, this will be the date the invoice generation reminder is sent.
4.5: Add any additional pay components if required. Then select Continue.
Step 5: Select the insurance plan for the contractor. You can include dependents, if necessary, and select Continue.
Note - Offering insurance to contractors is optional.
Step 6: Fill in the “Notice Period”.
You'll be invoiced a one-time deposit equivalent to the contractor’s compensation during the notice period. For example, for a notice period of 2 months, you'll be charged a security amount equivalent to the contractor compensation of 2 months.
6.1: Click on ‘Continue’ to proceed.
Note: Deposit payment is mandatory for contractor activation on the platform.
Step 7: Review the Order Form and then select Send Order Form to send it for the signatory’s signature.
Once the signatory signs the order form, we will send an Independent Contractor Agreement to the contractor.
Note:
An Order Form is signed between the company and Multiplier.
An Independent Contractor Agreement is signed between the contractor and Multiplier.
7.1: Once the contractor has signed the Independent Contractor Agreement, they will receive an email with the instructions to sign up on the Multiplier platform. The contractor must submit their personal, KYC, and bank details. Our team will verify the contractor’s details and activate the contractor on the platform.