⚠️ The Big Mistake: Misclassifying Employees as Contractors

Many U.S. businesses try the shortcut: paying workers via PayPal or Wise and calling them freelancers. Here’s why that can backfire: if your worker operates like an employee (full-time, set schedule, your tools, your direction), they’re an employee under their local labor laws.

Misclassification can lead to back taxes, fines, and lawsuits for benefits and severance, especially in employee-friendly jurisdictions like Vietnam.

🌍 Your Legal Options for International Hiring

You have two primary legal paths:

• Option 1: Set Up a Local Legal Entity. This gives you full control but is extremely expensive ($10k-$50k+ setup), complex, and takes months. It only makes sense for large-scale operations.
• Option 2: Use an Employer of Record (EOR). This is the fastest, safest, and most scalable option. An EOR legally employs the worker on your behalf, handling all local compliance while you manage their work.

💵 How Does the EOR Payment Process Work?

It's seamless. You sign a service agreement with the EOR (like VietAssist). Each month, you pay a single invoice. The EOR then handles all salary payments, tax filings, social security, and benefits for your worker in their local currency. Your worker gets paid legally and on time, every time.

🚀 Benefits of Paying Through an EOR

• No legal entity required.
• Fast onboarding, often within 5–10 days.
• Fully compliant contracts and payroll.
• No misclassification risk.
• Simplified global expansion and reduced admin burden.

🔐 Bonus: IP Protection & Contracts

A good EOR ensures your intellectual property is protected. Contracts include robust IP assignment and confidentiality clauses that are fully enforceable under local law. At VietAssist, we handle all of this for you, so you don’t need international legal counsel just to hire a developer.