How to hire and pay Haiti contractors

Self-employment in Haiti is higher than normal, with over three-fourths of the workforce engaged in informal and contractual work. As the demand for contract-based work rises across the Caribbean, now’s the time to tap into Haiti’s contractor economy and hire contractors in Haiti, legally and smartly.

Platforms like Payoneer Workforce Management (WFM) simplify the entire process, from onboarding to payment, making it secure and scalable. 

This guide outlines the importance of global contractor management and payment solutions, walks you through the classification process, familiarizes you with local legislation, and highlights the need for transparent contracts to hire contractors in Haiti.

How to hire contractors in Haiti

This section guides you through the whole process of recognizing, sourcing, and legally employing Haiti contractors, whether you are a domestic firm or an international business.

1. Understand worker classification

Before onboarding workers in Haiti, it’s essential to classify them as full-time employees or independent contractors. Misclassification can result in legal repercussions in Haiti and your home country.

If the worker sets their hours, uses their tools, and has multiple clients, they’re likely an independent contractor. 

Let’s elaborate on the differences between Haiti contractors and full-time employees further:

Criteria	Haiti Contractors	Employees in Haiti
Work Schedule	They set their schedule and work independently	You can set their schedule, up to 8 hours a day and 48 hours a week
Payment Structure	On a project or milestone basis	On a regular salary or wage basis
Tax Withholding	Responsible for their tax filings and social security contributions (if applicable)	You must withhold income and social taxes.
Entitlements	No benefits like health insurance or paid time off	Your statutory contributions to employee social security schemes are as follows:Occupational Accident Insurance: 2%Sick & maternity insurance: 3% Pension scheme: 6%

2. Understand Haiti’s independent contractor laws

Haitian labor law loosely defines independent contractors, and the relationship is purely based on individual agreements. Some legal considerations:

• Employment contracts must define the project scope, payment terms and conditions of termination.
• Haiti contractors have the right to operate independently, which entails being free to contract for other clients.
• Don’t control how the work is performed, just specify deliverables and timeline. This shields you from employer liabilities.

3. Find independent contractors in Haiti

There are some efficient channels to hire contractors in Haiti:

• Freelance websites like Upwork, Fiverr, and Freelancer feature Haitian experts in various fields, including translation, customer support, IT support, and more.
• Local job websites, for example, Job509, are favorite sources among professionals in Port-au-Prince and Cap-Haïtien.
• Referrals and networks: Word-of-mouth is particularly precious in industry-specific or local hiring.
• LinkedIn and Facebook groups are aimed at Haiti contractors and remote workers.

You can screen Haiti contractors through examination of previous work, interviews, and requesting references.

5. How can US companies hire contractors in Haiti

If you’re a US company employing Haiti contractors, here are the steps you can follow for compliance and convenience:

• Create a contractor agreement that specifically states the arrangement is non-employment. You need to specify the scope of work, payment, timeline, and deliverables.
• Get a W-8BEN form from the contractor. This confirms they are not a US person and are exempt from US tax withholding. Furthermore, local income taxes are contractors’ responsibility in Haiti, you don’t have to pay those as a foreign payer.
• Utilize safe contractor payments solutions like Payoneer WFM to make payments effectively.
• Maintain documents for tax and legal audits, such as signed contracts, invoices, and communication records.

How to pay contractors in Haiti

This section guides you on establishing stable, legally compliant payment processes that benefit you and your Haiti contractors.

1. Determine how to pay 

When paying contractors in Haiti, you have various options based on how often, how much money, and if the contractor has an account at a bank. The most popular methods of payment are:

• Payment Platforms (Like Payoneer): Popular and accepts payments in USD or Haitian Gourdes. Chosen for a contractor-friendly user interface.
• Wire Transfer Systems (Like Western Union or MoneyGram): Convenient where there is limited bank infrastructure, but less traceable for formal accounting.
• Direct Bank Transfers: These can be slower and may incur international banking charges.

You can select a method depending on cost-effectiveness, speed, and book-keeping ability.

2. Pay in Haitian Gourdes or US Dollars

Although the official currency is the Haitian Gourde (HTG), most Haiti contractors are reluctant to accept payment in HTG due to inflation and currency instability. 

For reference, 1 USD = 131.016 HTG 

You can inquire from your Haiti contractors what payment currency they prefer. Furthermore, define in the agreement which currency will be used and who bears the conversion fees.

3. Ensure your Haiti contractors have the right tax information

To remain compliant, ask the following of your Haiti contractor:

• W-8BEN form for IRS purposes (for non-US individuals).

• Their complete legal name and billing address.
• Billing invoices for each payment, ideally with hours billed or milestones reached.

4. Maintain compliant records

You are not required to report local taxes in Haiti, but you should maintain a digital record of the following documents for business compliance:

• Signed contracts and amendments
• Contractor invoices and work deliverables
• Payment receipts from platforms like Payoneer or bank statements

Why Payoneer WFM is the easiest way to hire contractors in Haiti

Payoneer Workforce Management (WFM) is specifically designed for businesses with a global workforce of contractors. That’s why it works so well for Haitian labor hiring:

• Pay in USD or HTG directly into local bank accounts or Payoneer wallets.
• Keep tax compliance forms and payment records in one place.
• Invite contractors by email, establish automated contracts, and begin paying immediately.
• More convenient than wire transfers, particularly for recurring payments.

For companies employing multiple contractors in Haiti, Payoneer WFM streamlines admin, maintains compliance, and facilitates long-term involvement.
Book a demo to get started!

FAQs on Haiti contractors

Do I have to withhold taxes when paying Haiti contractors?

No. Haiti contractors pay their local taxes. If you are based in the US, you may have to collect a W-8BEN to verify their foreign status as part of IRS compliance. 

Can I pay Haiti contractors in USD?

Yes. Many contractors in Haiti prefer to receive USD due to its strength. You can use methods like Payoneer that accept multi-currency payouts.

Are contractor agreements mandatory by law in Haiti?

Not necessarily. However, a signed contract is strongly suggested to define the terms of the arrangement and prevent misclassification. Moreover, if it is a written contract, it has to be drafted in French or Creole. 

Which Haitian industries are best suited for contractors?

Construction, customer service, farming, IT services, translation, and textile production are top industries for independent work. You can choose Payoneer WFM to hire and pay multiple contractors in Haiti.