Overview
When engaging vendors or freelancers outside the United States, additional compliance steps are required. This protocol supplements the standard Contracting SOP with international-specific requirements.
Required Documentation
- W8-BEN (for individuals) or W8-BEN-E (for entities) — replaces the standard W9
- Certificate of Insurance (COI) — must name INCO LLC dba Invisible North as Additional Insured. International vendors may need to obtain US-compliant coverage.
- Bank-issued document listing ALL banking details required for a US-to-foreign wire transfer
- Signed agreement (ICA or Vendor Agreement as applicable)
Payment Rules
- All international payees can ONLY be paid via wire transfer — no ACH, no check
- Standard policy: pay in USD. All invoices must be submitted in USD.
- If a vendor requests payment in local currency, this must be approved by Finance (Jonathan Pugeda) and Accounting
- Ask the vendor if their bank can receive USD funds before initiating payment
- Wire transfers take 1-2 business days once initiated
Key Considerations
- Tax Withholding: Depending on the country and treaty status, tax withholding may apply. Consult Finance.
- Currency Risk: Budget for potential exchange rate fluctuations on large international payments
- Lead Time: International wire setup for new vendors requires Chase approval (up to 3 business days for new payees)
- Time Zones: Factor in time zone differences for payment processing and communication
Process
- Identify the vendor as international during the contracting phase
- Request W8 form (BEN or BEN-E) instead of W9
- Request bank-issued wire transfer details
- Submit agreement request through standard contracting forms
- Coordinate with Finance on payment setup and any withholding requirements
- Submit AP payment request with all international documentation attached