How to pay international contractors in Jamaica [2025]

While Jamaica’s population is less than three million, the lush Caribbean island boasts a growing GDP and a roster of skilled independent contractors who could be a huge asset to any global company keen on expanding its footprint.

But before onboarding your first contractor in Jamaica, you need to figure out how to pay them, which is no easy task when navigating all the niche compliance and tax considerations. Looking for the details you need to pay a self-employed Jamaican worker as quickly as possible? We’ve got you covered with this step-by-step guide. 

Step #1: Classify your workers in Jamaica

Jamaican authorities distinguish full-time employees from independent contractors. If you mislabel an employee as a self-employed worker, you run the risk of facing fines from the Tax Administration of Jamaica (TAJ). You also may have to retroactively administer the benefits all Jamaican employees are entitled to. 

So how do you differentiate employees from independent contractors? A written agreement should set the terms for the working relationship, but Jamaican authorities will look at the criteria in the table below when gauging classification.

Step #2: Determine the best way to pay your contractors in Jamaica

Before working with contractors, companies need to figure out how to pay them. Here are the most common options:

• Bank wires. You can open a bank account in Jamaica and deposit funds. You could also use your native bank account to send a global wire transfer through the SWIFT network. The latter option comes with banking fees and sometimes other service charges. 

• International money orders. Similar to writing a paper check, this method involves sending a physical payment in the mail to a contractor living abroad. Companies usually have to commute to a Western Union, bank, or post office to purchase the money order. Then, contractors have to commute to their bank for a deposit once it’s received. In addition to being slow, money orders come with wire fees and unfavorable exchange rates.  

• Digital wallets or payment platforms. These services, like Wise, allow funds to be sent and received online. In Jamaica, Paymaster recently launched a new digital wallet called MyCash for electronic purchases. But while some online platforms can process transfers instantaneously, other digital payment platforms are unavailable in Jamaica (e.g., Venmo only works within the US). You also need to be aware of vendor fees and volatile exchange rates.

• Global payroll services. Since employers don’t withhold taxes on an independent contractor’s behalf, these freelancers generally aren’t in the same payroll system as employees. Rippling allows you to pay Jamaican contractors alongside the rest of your global workforce.

Step #3: Use global payroll software to process payments for Jamaican contractors 

Instead of worrying about service fees, fluctuating exchange rates, and slow processing times, you can pay Jamaican contractors through global payroll software.

With Rippling, you can pay contractors around the world in one system. You can also send locally compliant consulting agreements out for e-signature with a secure, easy-to-use platform to store all of your documents.

Here’s a glimpse of Rippling in action:

Step #4: Ensure your Jamaican contractors have the right tax information 

Jamaican contractors are required to file their own income taxes. First, they need to register as sole traders, which is done by registering with the Companies Office of Jamaica. They’ll need to confirm an address with ID documents, have a Justice of the Peace sign three passport photos, and pay a fee of JMD 2,500.

Once registered as a contractor, the worker can register for taxes. They typically need the following documents (more information about statutory forms for Jamaican freelancers is available on the TAJ website):

• A valid Tax Registration Number (TRN)

• An Electronic Filing Account Registration form (EF02)

• An IT01 income tax return form

• An S04 form for self-employed workers (this can replace the IT01, NIS, and other annual declaration forms)

• A notarized copy of a passport or driver’s license

• National Insurance Scheme (NIS) card

Jamaica also levies a general consumption tax (GST) on imported goods and services. The rate is generally 16.5%. 

Effortlessly manage contractors around the world

Managing a global workforce has never been easier. Rippling allows you to pay international contractors in Jamaica and across the globe in a single system.

Frequently asked questions about running payroll for contractors in Jamaica