How to Get Paid by Creators, and Pay Local and International Contractors & Employees

When it comes to compensating independent contractors working on OnlyFans accounts, especially those based internationally, understanding the payment landscape is crucial. As well as navigating the headache of receiving payments from international creators in a timely matter. Here's a guide on how to pay your contractors and receive payments from international creators.

Paying Contractors/Employees/Chatters

There are various methods to pay contractors or employees located outside and inside the US. However, no matter the identification, it's essential to ensure that you pay them correctly, considering any tax obligations in your home country for paying foreign workers.

Contractors vs Employees within the United States

The classification of workers as 1099 contractors or W-2 employees holds significant implications for both employers and workers. Here's a concise explanation highlighting the key differences, particularly concerning their schedules.

Nature of Work:

   - 1099 Contractors: Typically hired for specific projects or tasks, 1099 contractors are considered self-employed. They have more control over how they perform their work and may work for multiple clients simultaneously.

   - W-2 Employees: Employed by a company on a more permanent basis, W-2 employees work under the direction and control of the employer. They often have a more structured and ongoing relationship with the company.

Taxation:

   - 1099 Contractors: Responsible for handling their own taxes, including income and self-employment taxes. They receive a Form 1099-NEC from the client for tax reporting purposes.

   - W-2 Employees: Taxes are withheld by the employer, covering income tax, Social Security, and Medicare. Employees receive a W-2 form summarizing their annual earnings and taxes withheld.

Benefits:

   - 1099 Contractors: Typically do not receive employee benefits such as health insurance, retirement plans, or paid time off. They are responsible for providing their own benefits.

   - W-2 Employees: Eligible for various benefits offered by the employer, including health insurance, retirement plans, and paid time off.

Control and Independence:

   - 1099 Contractors: Have more autonomy in how they complete their work. They may set their own schedules and use their own tools and resources.

   - W-2 Employees: Work under the control and direction of the employer. Their schedules and work processes are often determined by the company.

Schedules:

   - 1099 Contractors: Enjoy greater flexibility in setting their schedules. They have the freedom to determine when and how they complete the agreed-upon tasks.

   - W-2 Employees: Typically follow a more structured schedule set by the employer. They may be required to work specific hours, follow a fixed workweek, and adhere to company policies regarding attendance and time off.

In summary, while 1099 contractors offer flexibility and independence, W-2 employees operate within a more structured employment framework. Understanding these distinctions is crucial for businesses and workers alike to ensure proper classification and compliance with labor laws and tax regulations.

Why is this important?

What this means, is that technically any employees you have within the United States that are “independent contractors” get to work whenever they want as long as the job is done. Therefore, any employees you have in the United States who are chatting during hours you provide them need to be classified as W2 employees. For processing W2 payroll, we recommend that you use third party companies such as ADP or Gusto. 

How to pay Virtual Assistants outside the US:

Most virtual assistants prefer to be paid every 1st and 15th of the month to ensure they are up to date on bills and never have a large unpaid balance with the company they are working with. To streamline the payment process and ensure compliance, consider using services like Pilot, Gusto, or other payroll software. These platforms not only facilitate payments but also allow contractors to fill out necessary forms such as W8-BEN and sign company documents before onboarding. 

Receiving Payments from International Models:

When it comes to receiving payments from models overseas, two primary options can work effectively for most agencies:

International Wire:

   This is often the easiest option, ensuring that the money goes directly to your bank without involving third-party processors. Be aware of potential wire fees imposed by your bank, as they may vary.

Payment Processors, such as Wise:

   Creating an account on Wise is a straightforward process. Visit their website and provide all necessary company details. Once approved, you can receive money in any currency available on Wise. To facilitate payments from creators, determine their country of origin, and match the bank currency accordingly. Have them send their bank information to Wise, and the platform will efficiently transfer the funds from your bank to your US checking account.