Contractor compliance checklist
Twenty checks to engage contractors lawfully in any country: the status test, the paperwork, tax and payments, and the habits that keep a contractor a contractor.
Step by step
- 1Tick each item as you go: your progress is kept in this browser.
- 2Run the status test for each country with the misclassification guide.
- 3Copy the checklist into your contractor file and review it every six months.
Watch-outs
What changes from one country to another, with the legal source.
All three conditions of the ABC test must be met, or the worker is an employee.
California Labor Code § 2775Form 1099-NEC reporting threshold: USD 600, raised to USD 2,000 for payments made after 31 December 2025, then indexed from 2027.
One Big Beautiful Bill Act (Pub. L. 119-21), s 70433; IRSMedium and large clients decide the status and issue a status determination statement when the contractor works through its own company.
ITEPA 2003, Part 2, Chapter 10False self-employment triggers back payment of social contributions; a status determination can be requested.
SGB IV §§ 7, 7a, 28eVigilance certificates for contracts of EUR 5,000 or more, renewed every six months; joint liability if not collected.
Code du travail L8222-1, L8222-2, R8222-1, D8222-5Enforcement of the Wet DBA resumed on 1 January 2025.
Belastingdienst, 2025A contractor with 75% or more of their income from one client can be an economically dependent self-employed worker (TRADE).
Ley 20/2007, art. 11The real substance and practical reality of the relationship decide status.
Fair Work Act 2009, s 15AATax is withheld at source on fees for professional or technical services paid to residents.
Income-tax Act 1961, s 194JSubordination, personal service, regularity and pay make a PJ contractor an employee.
CLT, art. 3Legal references checked on 15 Oct 2026. Rules change: check the source before you rely on it.
Questions people ask
What is the difference between FreelanX Contractors and Contractors+?
With FreelanX Contractors ($19 per contractor per month), you engage the contractor and FreelanX manages contracts, payments and invoices. With FreelanX Contractors+ ($279), FreelanX is the contractor of record: it contracts with the contractor and invoices you.
When should a contractor become an employee?
When the work is ongoing, directed by you and integrated in your team. FreelanX EOR can employ the person in their country, as the legal employer.
Is it free?
Yes. Every template is free to read and copy: no sign-up, no email, no download.
Do I need it on FreelanX?
On FreelanX missions, the contract is created from the brief and signed online, payments are held by FreelanX and released per approved milestone, and invoices are issued automatically. Templates help for work agreed elsewhere, or to prepare a conversation.