This article explains how to avoid fraud when hiring a contractor, and what to do before and after the hiring process. This guide will help you learn how to hire overseas contractors and pay them compliantly.How to hire overseas contractors in a foreign country. My employer is hiring a lot of foreign contractors can you please explain any potential risks we are opening ourselves. No, a company does not need a permit to hire a contractor who is going to work for them outside the USA. Understand tax requirements when hiring a foreign contractor. Our guide provides essential insights for seamless compliance with international tax laws. From noncompliance penalties to complications with intellectual property rights, employing independent contractors abroad can be risky and costly. If you were asked to sign the document after you were already working with them, then the question becomes what you received as compensation for signing. What Should I Do If My Employer Misclassifies Me as an Independent Contractor?