Skip to main content
This page explains what customers need to know when using Bolto solely to pay independent contractors. If you are not using Bolto as a Contractor of Record (CoR), the information below outlines how payments work, what Bolto handles, and where responsibilities remain with you and your contractors.

​
Overview

Bolto enables companies to pay independent contractors globally, quickly, and reliably. When you use Bolto for contractor payments:
  • The individual you are paying is an independent contractor, not an employee of Bolto or your company.
  • Bolto facilitates the movement of funds and currency conversion where applicable.
  • You retain responsibility for properly classifying your workers and managing your relationship with them.
Bolto does not act as the employer, nor does it provide employment compliance or tax services for contractor-only arrangements.

​
Countries We Support

Bolto supports contractor payments in nearly every country worldwide. We work with a global network of banking partners and local payment rails to enable payouts across regions and currencies. Availability, supported payment methods, and processing times may vary by country. If you are unsure whether a specific country is supported or have a unique use case, contact your Bolto representative for confirmation.

​
Supported Payment Methods

Contractors are paid by bank transfer to the account they link during onboarding. Depending on the contractor’s country, payouts arrive in their local currency or in USD. Payments are denominated in USD, and Bolto handles currency conversion when required. Transfer fees are covered by you as the payer — the contractor receives the stated amount. All fees are shown before you send a payment.

​
Payment Processing Times

Payment processing times vary by country and banking system. Depending on the location:
  • Many payments are completed within 1–3 business days once funding clears
  • Certain countries or banking systems may require additional business days
For scheduled (recurring) payments, Bolto generates the funding invoice ahead of each pay period’s end so that contractors are typically paid within a couple of days of the due date. Cross-border payouts begin once your funding payment is in flight. Processing times can also be affected by local bank holidays, compliance checks, and whether the contractor has received payments previously. For country-specific timelines, contact your Bolto representative.

​
Fees & Cost Transparency

All fees associated with contractor payments are clearly displayed before a payment is sent. Depending on your setup, fees may include:
  • Payment processing fees
  • Foreign exchange (FX) conversion fees
In some cases, local banks may deduct small downstream fees that are outside of Bolto’s control. Bolto does not add hidden or unexpected charges.

​
Taxes & Compliance Responsibilities

Independent contractors are fully responsible for their own taxes. When using Bolto for contractor payments:
  • Bolto does not withhold or remit taxes on behalf of contractors
  • Customers are not responsible for withholding taxes through Bolto
  • Contractors are responsible for complying with all local tax laws in their country of residence
  • For US contractors, Bolto files and delivers Form 1099-NEC at year end; contractors access their forms from their Documents page
Bolto does not provide tax advice. Contractors should consult a qualified tax professional if they have questions about their obligations.

​
Contractor Classification & Misclassification Risk

It is your responsibility to ensure that individuals paid as contractors are properly classified. If you treat a contractor like an employee — for example, by exercising significant control over their work, requiring exclusivity, or integrating them fully into your organization — you may be exposed to worker misclassification risk under local labor laws. Bolto does not assess or guarantee correct classification when used solely for contractor payments. If you are unsure whether a role qualifies as a contractor, review our Contractor of Record (CoR) solution, which is designed to mitigate misclassification risk.

​
What Bolto Is (and Is Not) Responsible For

Bolto is responsible for:
  • Facilitating contractor payments
  • Executing payouts through supported payment methods
  • Handling currency conversion when applicable
Bolto is not responsible for:
  • Worker classification decisions
  • Employment or labor law compliance
  • Tax withholding, reporting, or filings
  • Contractor benefits or statutory protections
Using Bolto for payments does not replace the need for proper legal, tax, or compliance review on your side.

​
Disputes, Errors & Payment Issues

Bolto supports the technical execution of payments but does not mediate disputes between customers and contractors. If a payment fails or is delayed due to incorrect information, Bolto will work with you to resolve the issue. Disputes related to work performed, compensation terms, or contractual disagreements must be handled directly between you and the contractor.

​
When You Should Consider a Different Bolto Product

Contractor payments may not be the right solution if:
  • The individual works full-time or long-term
  • You require high levels of control or exclusivity
  • Local labor laws increase misclassification risk
In these cases, Bolto’s Contractor of Record (CoR) or Employer of Record (EOR) solutions may be a better fit, providing compliance coverage and risk mitigation.