Contractor of Record (COR)

How does a Contractor of Record arrangement work?

A COR arrangement commonly places a provider between the client and an independent contractor. The exact contract chain varies by provider and jurisdiction. Under Remote's current COR terms, for example, the client contracts with Remote for specified services and deliverables, while Remote or a designated subcontractor signs a contractor services agreement with the contractor.

Depending on the service, the provider may assess the proposed engagement, onboard the contractor, administer the agreement, and process payments. The client can still have significant responsibilities. In Remote's model, these include providing accurate information, approving and paying invoices, and checking that the contractor holds any required professional credentials.

The parties may intend to create an independent-contractor relationship, but neither the COR label nor the contract alone determines the worker's status. For U.S. federal tax purposes, the IRS considers the entire working relationship, including behavioral control, financial control, and the relationship between the parties. Other tests may apply in other jurisdictions or under other laws.

How does COR differ from contractor management, AOR, and EOR?

These labels describe service models rather than standardized legal categories. One practical distinction is who signs the contractor agreement. Another is whether the arrangement is intended for independent contracting or employment. The provider's current terms are a better guide to both questions than the service label alone.

Arrangement	Example of the contracting or worker relationship
Contractor management	In Remote's current contractor-management service, the client directly engages the contractor, selects and executes the contract, and Remote is not a party to it.
Contractor of Record (COR)	In Remote's current COR model, Remote or a designated subcontractor signs the contractor services agreement with the contractor.
Agent of Record (AOR)	Providers may use this label differently. Deel describes its Contractor of Record offering as an agent-of-record service and says it signs an agreement with the contractor.
Employer of Record (EOR)	In Remote's employment service, Remote employs the individual and performs employer functions such as payroll, benefits, hiring, discipline, and termination. Remote's COR terms instead frame the work as independent contracting for services and deliverables.

These examples do not make COR and AOR universal synonyms or establish a market-wide boundary between COR and contractor management. Selecting COR also does not settle worker classification, which depends on the facts and applicable law. Review the provider's agreement to confirm the signing party, scope of services, and each party's responsibilities.

What should the COR agreement cover?

COR terms are provider-specific. Review the documents to determine whether and how they address the following points:

• Engagement and working practices. Confirm the services and deliverables, the contractor agreement or statement of work, the information used for any classification assessment, and the working practices each party must follow.
• Responsibilities and documents. Identify who administers the engagement and payments, what the client must approve or provide, and which documents, licences, or professional credentials are required.
• Fees and payment. Review contractor fees, provider fees, expenses, taxes or other costs, invoice timing, and the consequences of late payment.
• Work product and intellectual property. Check whether the agreement addresses ownership or assignment of work product, any background IP, and the actions or costs required to complete an assignment.
• Liability and exit terms. Read the liability exclusions, indemnities, caps, and termination provisions together. These terms may allocate or limit responsibilities differently across providers.
• Availability and eligibility. Confirm that the provider supports the relevant country and engagement type, and that the contractor and engagement meet its eligibility conditions.

These clauses do not guarantee a particular classification, liability allocation, or intellectual-property outcome. The signed agreements, the facts of the engagement, and applicable law determine the result.

When is COR suitable, and when is another arrangement needed?

COR may be suitable when the facts support an independent-contractor relationship, the company wants a provider to administer the engagement, and the provider accepts the contractor, country, and engagement type. The company must assess the work and the provider's eligibility requirements rather than rely on the COR label.

• A company engaging a contractor for defined services may consider COR if it wants a provider to administer the engagement and the provider accepts the proposed setup.
• A company that wants to remain the contractor's direct signing party may prefer a contractor-management service whose terms support that structure.
• A company should evaluate employment when it will exercise substantial control over how the work is done or when other facts point toward employment. For U.S. federal tax purposes, the IRS also considers factors such as the permanence of the relationship and whether the work is a key aspect of the business.

No single factor determines the result, and classification rules vary by jurisdiction. Deel, for example, says it may suggest an EOR arrangement after reviewing the location, job description, and work setup.