Hiring international contractors can be useful but comes with challenges like IRS requirements or foreign labor laws. When a US company hires independent contractors who are US residents, it should have contractors complete Form W9.Create an international contractor agreement that defines the fees, payment terms, and scope of work. Onboard the contractor and begin work. 1. Hiring international contractors requires knowledge on foreign labor laws and processes. Learn how to hire overseas contractors today. (f) Governing Law; Jurisdiction. Going to hire a contractor in the USA? The freelancer (independent contractor) initiates the payment transaction through a "Create an invoice" link in the PayPal Business app. Engaging independent contractors in the US often puzzles international business because of varying state and federal laws.