Before building the strategic framework for your global operations, let's start with a foundational principle: for the US-based portion of your agency, Gusto is the undisputed leader. It’s not just a tool; it’s a powerful engine designed to eliminate the precise administrative burdens that bog down founders. It handles the complexities of domestic payroll with an elegance that gives you back your most valuable asset: time.
Here's why Gusto is such a smart, foundational choice for your US team:
The operational confidence Gusto provides for your US team can quickly become a dangerous blind spot the moment your talent search crosses a border. The modern agency is a lean, agile operation orchestrating a fluid network of elite global contractors. This is where the playbook you’ve built your US foundation on begins to show critical gaps.
The core issue is one of purpose. While Gusto can send international contractor payments, it acts as a simple payment rail, not a compliance shield. The platform is designed to move money efficiently, but it leaves you entirely exposed to the risks of mismanaging a global workforce. The tool you trust for US compliance simply isn't built to solve these complex cross-border challenges.
This distinction is the difference between a false sense of security and genuine peace of mind. Here’s what that looks like in practice:
This gap becomes painfully clear when you face the "unknown unknowns" of global hiring—the critical questions that keep founders up at night:
The fear of the “unknown unknowns” in global regulations is precisely where you shift from reactive worry to proactive control. Moving past the limitations of a US-centric system requires a deliberate, compliance-first mindset. This isn't about finding a better payment button; it's about building a resilient operational framework from day one.
Your initial playbook provides a rock-solid foundation, but growth introduces a new enemy: complexity. Managing two global contractors is exponentially harder than managing one. The ad-hoc systems that felt efficient at first—a spreadsheet here, a calendar reminder there—quickly become liabilities. Scaling with confidence requires a deliberate shift from managing individual tasks to orchestrating a unified system.
A secure operational foundation for your global team is the launchpad for your next growth phase: hiring your first full-time W-2 employee in the United States. This introduces a completely different set of compliance challenges. The smartest agencies don't hunt for a single tool to do everything; they build a strategic tech stack based on a simple philosophy: use the right tool for the right job.
Your global operations and your domestic payroll are two distinct functions. They demand two specialized solutions that work in concert.
The power of this stack lies not in what each tool does alone, but in how they work together. One manages the variable, project-based costs of your flexible global workforce, while the other handles the regulated, recurring payroll for your core US team. This separation of duties is the key to clarity and control.
Here’s how they create a single financial view:
Both systems integrate seamlessly with accounting software like QuickBooks and Xero. Each month, your global contractor expenses and US payroll data sync directly into your general ledger. The result is a complete, accurate, and real-time picture of your agency's total workforce investment. This isn't about choosing one platform over another; it's about architecting an operational system that is as resilient, flexible, and scalable as the global agency you are building.
Architecting this resilient operational system is about more than technology. It’s a deliberate choice to shift your mindset from a US-centric view, where global talent represents a field of compliance landmines, to a global-first view, where the world is your talent pool and compliance is a solved problem. By building a strategic stack—a dedicated compliance platform for your global contractors and a best-in-class tool like Gusto for your US employees—you are fundamentally changing your agency's operational DNA.
You are building a foundation of operational excellence.
This foundation allows you to stop reacting to compliance threats and start proactively building the business you envision. When you have certainty that every international contractor is properly documented and every cross-border payment is defensible, you eliminate the nagging fear of a future audit. When you know your US benefits and payroll are managed with precision, you free up immense mental energy.
This isn't just about efficiency; it's about empowerment. It’s the confidence to:
Ultimately, the goal of a well-designed payroll system isn't just to pay people correctly. It's to remove operational friction so you can focus on what you do best: delivering incredible work for your clients. By separating global compliance from domestic payroll and using the right tool for each job, you build a resilient, scalable, and anxiety-free agency ready to thrive on the global stage.
Yes, Gusto can send payments to contractors in many countries, but it functions as a payment service, not a compliance solution. It can help you store a W-8BEN form, but it does not validate it or manage ongoing compliance. This means your agency remains fully liable for navigating local labor laws, managing currency risk, and ensuring every payment is legally defensible.
The optimal solution is not a single tool, but a strategic stack:
For any US-based agency, you must collect a completed Form W-8BEN (for an individual) or W-8BEN-E (for an entity) from every non-US contractor before you pay them. This IRS form certifies the contractor's foreign status and exempts you from the legal obligation to withhold 30% of their payment for backup tax withholding. You don't file the form with the IRS, but you must keep it on record to prove compliance in an audit.
This question highlights two tools for different hiring needs. The choice depends on whether you are hiring contractors or full-time international employees.
For agencies working primarily with global contractors, a compliance platform focused on contractor management is a more targeted and cost-effective solution than a full EOR service.
Yes, for US-based contractors paid $600 or more in a calendar year, Gusto automatically generates and files the required Form 1099-NEC with the IRS and distributes copies to your contractors.
The distinction is crucial for managing risk. A payment platform (like PayPal or Wise) is a money-moving service. It is reactive and focuses on the transaction itself. A compliance platform is proactive, designed to protect your business before a payment is sent. It creates a defensible record by ensuring you have the right localized contracts, have collected and verified the correct tax forms, and are adhering to international labor standards. It’s the difference between simply sending money and making a safe, auditable business payment.
A former tech COO turned 'Business-of-One' consultant, Marcus is obsessed with efficiency. He writes about optimizing workflows, leveraging technology, and building resilient systems for solo entrepreneurs.
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