With TankhaPay, your contractors will be legally contracted by TankhaPay for you in India to handle contracts, deductions, and payments, so you don't have to worry about the dangers of misclassifying contractors.
EOR and CoR serve different worker relationships. You will need to determine which is appropriate for you based on whether you are employing a staff member or working with a contractor.
| What matters | Employer of Record (EOR) | Contractor of Record (CoR) |
|---|---|---|
| Worker type | Full-time employee | Independent contractor |
| Who's the legal employer | TankhaPay employs the worker on your behalf | No employment relationship, TankhaPay is the contracting party |
| Statutory benefits | ✓ PF, ESI, gratuity, paid leave | Not applicable, contractor relationship |
| Payroll processed as | Salary, with applicable statutory deductions | Contractor invoice, with applicable TDS deducted |
| Best suited for | Long-term, full-time roles | Project-based, flexible, or specialist engagements |
| Misclassification risk if done wrong | Comparatively low, as relationship is already formal | ✓ This is exactly what CoR is built to prevent |
Already know you need full-time hiring instead? See TankhaPay's Employer of Record →
Direct contractor engagement can create compliance and operational issues when the relationship is not properly structured or managed.
When a contractor's working arrangement starts resembling employment, the engagement may be reclassified.
There could be extra taxes and penalties during the period under consideration for misclassification.
Generic agreements can leave important terms such as IP ownership, confidentiality, payment, and dispute resolution unclear.
Managing agreements, TDS, invoices, and contractor records manually takes time away from HR and finance teams.
Manage the contractor lifecycle from engagement to payment through one platform.
We review the engagement structure to help ensure the contractor relationship is appropriately defined before the contract is signed.
Agreements are put in place for the engagement based on relevant Indian laws related to intellectual property, confidentiality, remuneration, and dispute resolution.
Applicable TDS is withheld and documented, providing the documentation required by your finance department.
Invoices and payments are managed on a defined cycle, helping contractors get paid on time and keeping records organised.
When a contractor role becomes a full-time position, transition the engagement to TankhaPay's Employer of Record.
Track contractors, contracts, invoices, and payment status in one place instead of across emails and spreadsheets.
A straightforward monthly fee for managing your contractor engagements, with no setup or per-filing charges.
One flat fee that covers the Contractor of Record service, with pricing that scales with the number of contractors you engage.
Get a Custom QuoteTankhaPay manages the contractor engagement lifecycle, with pricing based on contractor count and engagement type. Talk to our team for a custom quote.
Each engagement is reviewed before the contract is signed.
Contracts are prepared for the engagement under applicable Indian law.
Applicable TDS is deducted and documented for compliance and reporting.
Invoices and payments are managed on a predictable cycle.
Transition eligible engagements to EOR when a role becomes full-time.
Track contracts, invoices, and payment status in one place.
TankhaPay is built for the Indian market, backed by Akal Information Systems' 26+ years of payroll and compliance experience across 1,000+ leading global businesses.
Four simple steps. TankhaPay manages the compliance work throughout.
Share the scope of work, rate, and start date. We handle the next steps.
The agreement is prepared for the engagement and reviewed for contractor classification before signing.
You take charge of the daily operations of the contractor, but TankhaPay takes care of the rest.
The contractor invoices for the agreed work, the applicable TDS is deducted, and payment is processed on schedule.
Four questions, based on how Indian authorities actually test contractor status. Answer honestly, it takes under a minute.
CoR works for companies that need flexible access to Indian talent without treating every engagement as a full-time hire.
Engage Indian talent without setting up an entity while you assess the fit before moving to full-time employment.
Build teams with a mix of contractors and employees, with a clear path to transition contractors to EOR when needed.
Engage project-based specialists across regions without adding permanent headcount or long-term employment commitments.
UStart with contractor engagements and move to EOR when you are ready to hire employees in India.
Bring in specialised talent as demand changes without committing to permanent roles that may not be needed long-term.
Make all contracting efforts follow a single procedure with proper documentation and management.
What HR and finance teams usually ask before handing off contractor management.
Still have questions? Call 989-198-8811 →
Don't just take our word for it, or G2's, or Google's.
"We've been using TankhaPay for a year and are very satisfied with their service. Their payroll and compliance expertise ensures smooth operations. Highly recommended for businesses seeking a reliable HR and payroll partner."
"TankhaPay has made our payroll and compliance smooth, accurate, and efficient. The platform is user-friendly, and the team's prompt, professional support gives us complete peace of mind."
"TankhaPay's services are highly commendable, and their team is extremely supportive and responsive, making HR and payroll management seamless."
"Implementing TankhaPay has significantly improved operational efficiency across our organization. The system offers a centralized, user-friendly interface for managing employee records, payroll, leave requests, and performance tracking, freeing our teams to focus on more strategic work."
"TankhaPay is easy to use and helps streamline payroll and employee management. It has made our day-to-day operations more efficient and organised."
"We truly appreciate the promptness with which our concerns are addressed, and we find the staff exceptionally supportive and cooperative. Everything has been excellent, and we are very satisfied with the services provided."
Tell us who you're engaging and how many contractors. We'll come back with a scoped quote within 24 hours.
Let TankhaPay handle the contract, the compliance, and the payments, while you focus on the work.
Get Started →