Contractor vs Employee for Remote Jobs: B2B, EOR and What to Ask

When a remote tech job moves to the offer stage, a new question appears: contractor or employee? The answer changes how you're paid, who handles your taxes, what happens when you're ill, and how easily the contract can end. This article explains the four setups you'll usually meet (direct employee, Employer of Record, B2B contractor, contractor through a platform), the questions to ask early, and the contract details worth reading twice. It's a general overview, not tax or legal advice: rules differ by country and change, so check your case with a local accountant.

The four setups in one table

"B2B" is common shorthand, especially in Poland and among Russian-speaking developers, for working as your own small business and invoicing the client. The registration behind it has different names and rules in each country.

Why companies choose one or the other

Companies aren't choosing randomly. A direct contract needs a legal entity in your country, which most companies have only in a few places. An EOR adds cost for the company but lets them offer a local employment contract without setting up an entity. Contractor agreements reach the most countries with the least setup, which is why many roles open "worldwide" are contractor roles. We cover that side in which "remote anywhere" jobs are really open.

In some countries, treating a contractor like an employee in practice (fixed hours, company equipment, no other clients) can create legal problems for the company. That's one reason some employers limit which countries they hire contractors in, or switch people to EOR over time.

How to compare an offer fairly

A contractor rate and an employee salary aren't the same kind of number. Before comparing, list what each one does and doesn't include. For a contractor rate, subtract or budget for:

• Taxes and social contributions you'll pay yourself.
• Unpaid days: public holidays, vacation and sick days, unless the contract pays for them.
• Accounting and registration costs, if you need an accountant or local service.
• Currency conversion and bank fees, if you're paid in a currency you don't spend.
• Equipment, software and internet that an employer might cover.
• Gaps between contracts, since notice periods for contractors can be short.
• Pension and health cover, if your country's system depends on contributions.

Then do the comparison with real numbers from your own country, ideally with an accountant who works with IT contractors. We won't give figures here because they depend entirely on where you live and change often. For how to talk about money earlier in the process, see salary expectations in applications.

Questions to ask the recruiter early

Ask these on the first or second call. They're normal questions, and a clear answer tells you a lot about how the company works.

1. Can you hire in my country today, and have you done so before?
2. Would I be a direct employee, employed through an EOR, or a contractor?
3. If contractor: do you pay my invoices directly, or through a platform?
4. In which currency is the pay, and how often?
5. For contractors: are holidays and sick days paid, or is the rate meant to cover them?
6. Is the rate or salary reviewed, and how often?
7. Can I switch from contractor to EOR or employee later, if you set that up in my country?

If you've relocated outside the EU, the first question matters most. We go through that situation in remote tech jobs after relocating.

Contract clauses to read twice

Whatever the setup, read these before signing:

• Notice period, for both sides. Is it the same length?
• Payment terms: when invoices are paid, and who covers transfer fees.
• Intellectual property: what you're assigning, and whether it covers work outside the contract, such as your own side projects.
• Exclusivity and non-compete: can you take other clients or projects?
• Equipment: whether you use your own or theirs, and what happens to it when the contract ends.
• Governing law: which country's law applies if something goes wrong.

If a clause is unclear, ask for it to be explained in writing. Asking is normal and doesn't weaken your position.

Which setup suits you

There's no universally right answer. Contracting can offer more flexibility and a higher headline rate, but you carry the paperwork and the gaps. EOR or direct employment usually gives more stability and local protection, but isn't available in every country for every company. Many people have done both at different stages.

What helps is knowing your preference before the offer arrives. If you'd only accept an employment contract, say so early; if you're registered as self-employed already, say that. It saves both sides a late surprise.

What you can do today

1. Find out what self-employed registration exists in your country and what it costs to run. An hour with an accountant is well spent.
2. Write down your minimum acceptable rate as a contractor and as an employee, separately.
3. Add one line to your applications or first message: "Based in Warsaw; open to B2B or employment contracts."
4. Keep the seven recruiter questions above in your notes.
5. When a posting mentions a region, check what it covers; see what EMEA means in a job posting.

Hot Jobs doesn't filter by contract type, and job postings often don't state it anyway. What it does is check 390+ tech company career pages every 30 minutes, plus two remote boards, and send roles in the regions you pick to Telegram, so you can ask these questions sooner. €3, paid once. Connect the bot