Free classification test

Contractor vs employee?

Seven questions. Get a classification verdict, your misclassification risk, and what each option really costs.

Start the test
Employer taxes, transfer fees, and the monthly total for each path
150+
countries covered
7
quick questions
2 min
to your verdict
1 of 7

Where is this person based?

Continue
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
← Back
Last step

Where should we send your breakdown?

Your result shows right away. The full cost breakdown lands in your inbox.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Enter a valid work email to continue.
← Back to questions
● Employee shaped

This role looks like an employee.

Ongoing work, your hours, your process, no other clients. Under most local labour laws that is an employment relationship, whatever the contract says.

Misclassification exposureHigh
What the employee path costs, per year
$0/yr
Employee
Hired directly
Gross salary$0
Employer taxes + accruals$0
Cost to move the money$0
Monthly total$0
Contractor, paid your way
Bank transfers, one by one
Gross fee$0
Employer taxes$0
Cost to move the money$0
Monthly total$0
Contractor, through Ontop
Compliant contract + payout
Gross fee$0
Employer taxes$0
Cost to move the moneyOne flat fee
Monthly total$0
Estimates based on typical employer costs and average transfer + FX costs.
Contractor Pro

A tripartite contract where Ontop shares the liability. Keep the contractor relationship without carrying the exposure alone.

Ontop Guard

Misclassification and labour claims protection, on top of Ontop Signs. Cover for exactly the risk this quiz just found.

Book a demo
See how to keep the contractor, without the exposure.
Retake the quiz
● Clean contractorContractor is the right call. You are just paying too much to move the money.The relationship holds up. What does not hold up is what it costs you to pay them every month, in fees, FX and hours of admin.What you pay every year just to move the moneySee what you stop paying.
● Employee shapedThis role looks like an employee.Ongoing work, your hours, your process, no other clients. Under most local labour laws that is an employment relationship, whatever the contract says. You have two ways out, and only one of them means becoming an employer in their country.What the employee path costs in {country}, per yearSee how to keep the contractor, without the exposure.
● Already at scaleYou are running a global payroll without a global payroll.{hc} people in {country} and others, paid through {pay}. Every country is its own set of rules, its own fees and its own spreadsheet. That is the actual cost, and it is not on any invoice.What your team pays every year just to move the moneyOne platform, every country, one invoice.
Estimates based on typical employer costs in {country} and average transfer + FX costs. Ontop pricing is one flat fee. Exact quote on the demo.

Contractor vs employee: what decides it

Local labour law classifies the relationship, not the contract. Three signals decide it almost everywhere, and this test scores all three.

Control

Who sets the hours, the process and the tools. If that is you, it points to employment.

Exclusivity

Whether they work only for you. One client for months reads as economic dependence.

Permanence

How long it lasts. Ongoing work with no end date is the strongest signal of employment.

What misclassification costs

Reclassification is retroactive: unpaid contributions, benefits, severance, fines and interest for the whole relationship. In Latin America employer contributions add 10% to 36% on top of gross salary. The bill grows every month it continues.

Contractor or employee: side by side

Points to contractor
Works for several clients
Sets their own schedule
Uses their own tools
Paid per project or deliverable
Defined start and end date
Can send a substitute
Points to employee
Works only for you
You set the schedule
You provide the tools
Paid a fixed amount every month
Ongoing, no end date
Must do the work personally

Frequently asked questions

What is the difference between a contractor and an employee?

An employee works under your direction: your schedule, your tools, usually for you alone. A contractor serves several clients and is paid for a result. What counts is how the relationship works, not what the contract says.

What is employee misclassification?

Treating someone as a contractor when the relationship is really employment: ongoing work, your hours, no other clients. It is decided after the fact, by a labour authority or a court.

Can you set the hours for an independent contractor?

You can agree deadlines or availability windows. Dictating a fixed daily schedule is one of the strongest signals of employment, whatever the contract says.

What are the penalties for misclassification?

Retroactive contributions and payroll taxes, unpaid benefits and severance, fines, interest, and often a labour claim. They apply to the full length of the relationship.

How do I know if my contractor should be an employee?

Three signals carry most of the weight: how long you need them, who controls the work, and whether they work only for you. This test scores all three.

Can I keep the contractor without the risk?

Often yes. Contractor Pro shares the liability through a tripartite contract; Ontop Guard covers misclassification and labour claims. The test tells you which fits.

Then run the numbers

This test settles classification. These three do the arithmetic.

Employee cost calculatorGross, contributions and statutory accruals.Hourly rate calculatorAnnual salary to hourly rate, and back.FTE calculatorHeadcount and hours into full-time equivalents.
×Talk to an expert

Let's get you on board

Drop your details and a teammate from Ontop will reach out.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.