Hire Contractors in Argentina

In recent times, global companies have preferred to hire contractors in Argentina. The capital, Buenos Aires, is among the top three global cities where they recruit talent. 

Moreover, Argentine companies are also reaping the benefits of hiring contractors on a project basis. 

Leveraging this trend of independent contractors in Argentina can offer your business significant advantages. 

Fortunately, this guide will equip you with the compliance knowledge and contractor management tools to minimize risk while hiring, onboarding, and managing remote talent.

How to Hire Contractors in Argentina

Follow the below steps to increase your chances of a successful and compliant experience when hiring contractors in Argentina:

1. Hiring plan:

• Define the specific skills and experience required for the project.
• It will help you target your search for qualified contractors.
• Explore online platforms & job boards for freelance and independent contractors in Argentina. 
• While established platforms like Upwork, Fiverr, and LinkedIn might have a smaller presence in Argentina, local alternatives like Bumeran, Computrabajo, and ​​Zonajob could cater to the region.

2. Engagement and contracts:

• Carefully review resumes and portfolios of potential contractors to assess their qualifications and experience.
• Reach out to references provided by the contractor to verify their skills and work ethic.

• Draft a clear written contract with the contractor outlining the scope of work, compensation, payment terms, and termination clauses.  
• Avoid any language that could imply an employer-employee relationship.

3. Contractor management:

• There are no tax obligations on employers when paying a contractor in Argentina. 
• However, maintaining good records of your communication and agreements with the contractor will be helpful in case of any future disputes or audits.

Hiring contractors through Skuad AOR

Agent of Record (AOR) solutions can simplify the process of hiring contractors in Argentina. 

Skuad’s AOR solution provides an all-in-one platform for contractor management, including onboarding, compliance, IP protection and data privacy, invoicing, expense approvals, reimbursements, payments, and more.

Using Skuad AOR, global companies can employ international independent contractors without risking misclassification. 

Furthermore, Skuad AOR keeps employment history and records intact, aiding in swiftly converting contractors into employees. 

How to pay contractors in Argentina

Paying a contractor in Argentina depends on the transaction amount, compliance requirements, and contractor preference. 

The best practice is to have a written agreement with the contractor outlining the payment terms, currency, and any applicable fees. 

Here are the most common options to initiate payments:

Hiring Contractors Directly vs Hiring Contractors via Skuad

The table summarizes contractor management through directly hiring contractors and hiring contractors via Skuad:

You can revisit this easy checklist to avoid misclassifying employees as independent contractors in Argentina.

Cost of Hiring Contractors in Argentina

The table summarizes the cost involved in hiring contractors in Argentina: 

How to Convert a Contractor into an Employee in Argentina

Converting contractors to employees in Argentina involves transitioning them from independent workers to formal employees on your company payroll. 

It is similar to switching from 1099 contractors to W2 employees in the United States, and it involves a two-step approach:

1. Formalize the employment relationship:

• Draft a formal written employment contract outlining the employee's role, responsibilities, salary, benefits, and termination clauses. 

2. Manage payroll and taxes:

• Obtain a Unique Tax Identification Code (CUIT) number in Argentina to withhold income tax and deduct employee share of contributions from salary. 
• Register under various social security programs to transfer pensions, healthcare, unemployment benefits, and other social assistance programs under Argentinian laws. 
• Moreover, a payroll system should be implemented to handle salary payments and deductions.

Challenges of Hiring Contractors in Argentina

In addition to common challenges like informality, language barriers, and skill mismatch in the labor markets of Latin America, here are some unique challenges for employers to hire contractors in Argentina: 

1. Proving independent contractor status in Argentina

• The labor laws in Argentina assume a worker is an employee unless proven otherwise. It flips the burden of proof onto the company, making it difficult to defend against contractors claiming employee status in court.
• Hiring a contractor with an agreement or invoices for services is needed. These documents won't automatically protect the company if the contractor disputes their classification.
• Establishing a clear contractor-company relationship becomes difficult as agreements can't waive Argentina's labor laws.

2. Intellectual Property (IP) protection in the employment context

• Your existing trademarks and patents registered in your home country won't automatically apply in Argentina.
• To protect your IP in Argentina, you must file separate applications for patents and trademarks with the National Institute of Industrial Property of Argentina (INPI).
• Moreover, the U.S. has included Argentina on its Special 301 priority watch list since 1996 concerning Argentina's enforcement of intellectual property rights. It might be more difficult to take legal action if a contractor in Argentina misuses your IP.

3. Paying a contractor in Argentina

• Contractors in Argentina typically invoice their services, and these invoices need to include their tax ID. 
• You must understand the local tax rules and compliance requirements to clear invoices.
• Further, currency fluctuations in exchange rates can challenge budgeting and project costing if you're paying contractors in Argentine pesos.

Nonetheless, global companies can avoid misclassification risks, automate payments, and guarantee the protection of their company's IP when using contractor management software like Skuad to work with contractors in Argentina.

Hire Contractors in Argentina with Skuad

With expertise in over 160+ countries, Skuad has enabled as many as 600+ companies worldwide to ensure a seamless and compliant contractor onboarding process. 

You can hire, pay, and engage with independent contractors in Argentina without setting up a local entity as Skuad takes over administrative burdens.

It allows you to focus on building relationships with your contractors and maximizing their contributions to your projects. 

Book a demo and unlock the potential of a global workforce.

FAQs

1) Can I hire an independent contractor in Argentina?

Yes, you can hire contractors in Argentina. But you must classify the worker correctly to avoid misclassification penalties. The most preferred way to simplify payroll, taxes, and compliance while hiring contractors is through the Agent of Record solution like Skuad. 

2) What is the difference between contractors and employees in Argentina?

The difference between contractors and employees lies in control and dependency. However, contractors’ services in Argentina indicate a labor relationship under the legal presumption. Even though contractors enjoy more autonomy over their work schedule and methods, they're not entitled to employee benefits under labor laws. 

3) Can I hire a contractor overseas?

Yes, you can hire contractors overseas while operating from Argentina. However, you must consider currency exchange and compliance fees, like US employers have 1099 tax obligations. Here is where a contractor management service like Skuad can simplify overseas contractor onboarding and managing in Argentina.

4) How do I pay an independent contractor in another country?

Paying a contractor in Argentina involves direct bank transfer, online payment platforms like PayPal, Wise, Payoneer, or Agent of Record (AOR) services like Skuad. 

5) How does Skuad help with hiring and paying independent contractors in Argentina?

Skuad’s AOR services include payroll, taxes, and compliance, ensuring you are freed from administrative burdens when hiring contractors in Argentina. Moreover, paying contractors with Skuad minimizes currency exchange hassles.