What is the difference between Deel vs Rippling for international contractors in 2022?

Swifteam

5 mins

Rippling and Deel are two popular payroll software options for small and medium businesses. Both offer features that can save time and money for business owners, but there are some different advantages between the two. 

If you work with someone as a contractor following local labor laws of both countries, or even states + understanding the local infrastructure required to invoice you (which is a lot more complex than US1099) is crucial. Paying someone with no infrastructure or the wrong one can end up being a serious compliance risk that a company should not neglect - especially as more people hire internationally and governments are taking a closer look.

Benefits of Deel:

Deel gives a great experience to your contractors with lots of features (split withdrawal, aggregation of best payment methods - Transferwise, Paypal, Payoneer, invoice generation, cash advance, etc). Their localized contracts are reviewed by over 200 lawyers on a quarterly basis.  You can also pay in local currencies to your contractors which is a great benefit for international remote work companies.

They offer an "Employer of Record" model, where your contractors actually work for Deel as their employer. Deel has over 25 subsidiaries of its own to cover most countries. If you need to hire "full-time employees" (instead of just contractors) internationally, Deel can help you set up this in 1 to 3 days depending on the countries you’re hiring. 

Benefits of Rippling:

Rippling has its own HR and payroll systems which often makes things easier when you have an entity in the US and run a global payroll. When you hire global employees using Rippling, it is a matter of adding records on top of your US payrolls which is pretty convenient.

Rippling payroll for contractors is a simple wire via SVB bank and doesn’t help with most of the complexities around local labor laws, and the payment infrastructure for your contractors. Rippling supports only USD-denominated transfers. They offer an "Employer of Record" model, where your contractors actually work for Rippling as their employer. If you need to hire "full-time employees" (instead of just contractors) internationally, Rippling can help you set up this in 1 to 3 days depending on the countries you’re hiring. 

Based on our experience, running a combination of Rippling and Deel makes the most sense to save money and avoid legal troubles in the US and internationally.