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3 min read

Can I Use Stripe to Pay Independent Contractors?

Key Takeaways

  • Stripe is a simple and reliable payment processing service that can be used to pay independent contractors. But it may not be the easiest way to pay your contractors—we’ll cover that below.
  • You will need to collect the necessary information from your independent contractors, such as their email address and bank account information, to use Stripe for payment.
  • Once you have set up your Stripe account and collected the necessary information, you can easily initiate payments and celebrate once the payment has cleared.

Stripe is one of the most popular payment platforms for making payments on the internet. Here we look at how to use Stripe to pay your independent contractors. 

How do I pay my contractors with Stripe?

Follow the following method: 

  1. Set up a Stripe account: First, you’ll need to set up a Stripe account. It’s a simple process that only takes a few minutes. Stripe also offers a wide range of payment processing services to meet all your payment needs.
  2. Collect necessary information: Next, you’ll need to collect the necessary information from your independent contractors, such as their email address and bank account information (to find out more about information you may need from contractors check out our guide to NEC-1099 forms). Make sure to keep this information secure and confidential.
  3.  Initiate the payment: Once you have the necessary information, you can log in to your Stripe account and enter the payment details, including the payment amount and the contractor’s banking information.
  4. Wait for the payment to clear: Stripe payments typically take two business days to clear, so make sure you have sufficient funds in your account to cover the payment.
  5. Celebrate! Your payment has been processed quickly and securely. Don’t forget to confirm with your independent contractor that they have received the payment.

Stripe Alternatives

Alternatives to Stripe, particularly for businesses with an international workforce include: 

  1. PaypalPaying contractors with Paypal is an excellent alternative for businesses that need to pay contractors distributed throughout the world. 
  2. ACH payments: Standard wire transfers for those within the US, and usable for those outside the US with a Wise domestic US account.  
  3. Employers of Record with contractor payment facilities, including HorizonsG-P and Deel
Confidentiality Agreement

Confidentiality agreement template

Here’s a short example of what a confidentiality agreement might look like. Remember that the specific terms of the agreement will depend on your business and what kind of contract you’re writing.

Confidentiality Agreement

This confidentiality agreement (“Agreement”) is made and entered into as of [insert date] by and between [insert your business name] (“Disclosing Party”) and [insert global contractor’s name and address] (“Receiving Party”).

Scope of Agreement

The Receiving Party agrees to hold confidential all information disclosed to it by the Disclosing Party. Such information includes, but is not limited to, all proprietary information, trade secrets, and other confidential information. The Receiving Party shall not use this information for any purpose other than to perform its obligations under the contract with the Disclosing Party.

Terms of Agreement

This Agreement shall remain in effect for the duration of the contract between the Disclosing Party and the Receiving Party. The Receiving Party agrees to use reasonable efforts to maintain the confidentiality of the Disclosing Party’s information. The Receiving Party shall not disclose any of the Disclosing Party’s confidential information to any third party without the express written consent of the Disclosing Party.

Consequences for Breach

In the event of any breach of this Agreement by the Receiving Party, the Disclosing Party shall be entitled to seek injunctive relief and any other remedies available at law or in equity.

Conclusion

Creating a confidentiality agreement for your global contractors is a straightforward and essential tool for ensuring that your sensitive information remains safe and secure. By following these six simple steps and using a clear and concise template, you can help ensure that your information remains confidential and protected. Remember, before creating any agreement you should contact a lawyer who can help to ensure that the agreement you create meets your specific needs.

At RemotePad, Lech draws on his professional experience to write about employment taxes and payroll (both remote, and in-office). Lech holds a Bachelors’ degree from the University of Kent, a Master of Arts (MA) from Kings College London, and professional payroll and tax qualifications. He is the founder of both https://www.lastfridayofthemonth.com/ and https://idoyourtax.com/ and has 20 years experience advising on all manner of tax and business planning matters.