> ## Documentation Index
> Fetch the complete documentation index at: https://docs.shorpay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How Shor Works

> From hiring to paying: the full lifecycle on Shor.

Shor handles the end-to-end lifecycle of building a global team: onboarding the worker, generating a compliant contract, collecting tax and identity information, running payments on a schedule, and producing the right tax documents at year-end.

## The Lifecycle at a Glance

<Steps>
  <Step title="Set Up Your Company">
    Create your Shor account, complete business verification (KYB), and add funding so you can pay your team. Most companies are ready to hire within a day.
  </Step>

  <Step title="Add a Worker">
    Invite a contractor or employee by email. You pick the engagement type (contractor or employee) and, for employees, the country of employment. The worker provides their own country, tax info, and payout details when they accept the invite.
  </Step>

  <Step title="Generate and Sign a Contract">
    Shor creates a contract that reflects local labor laws (including minimum wage, statutory leave, notice periods, and required clauses). Both parties sign electronically.
  </Step>

  <Step title="Worker Verifies Identity">
    The worker completes identity verification (KYC). They can link a bank account at any time to withdraw earnings from their Shor account to their own bank.
  </Step>

  <Step title="Run Payroll or Send a Payment">
    Schedule recurring payroll runs, pay by milestone, or send one-off payments. Shor handles FX, withholdings, and local tax reporting automatically.
  </Step>

  <Step title="Records and Tax Forms">
    Every payment, contract, and invoice is stored in one place so you can reconcile at month-end and hand clean records to your accountant. US tax forms (W-9, W-8BEN, W-8BEN-E) are generated automatically for workers who need them.
  </Step>
</Steps>

## Two Portals, One Platform

<CardGroup cols={2}>
  <Card title="Employer Portal" icon="building">
    For company admins: hire people, run payroll, manage funding, view reports, and handle billing.
  </Card>

  <Card title="Professional Portal" icon="user">
    For workers: sign contracts, view pay history, download invoices and tax documents, update payout methods.
  </Card>
</CardGroup>

## What Shor Handles for You

<AccordionGroup>
  <Accordion title="Localized Contracts">
    Every contract reflects the worker's country: probation periods, notice terms, non-competes, statutory benefits, and required disclosures. You don't need a lawyer in every jurisdiction.
  </Accordion>

  <Accordion title="Identity & Business Verification">
    KYC for workers and KYB for companies, with the right checks for each country. Shor handles re-verification when rules change.
  </Accordion>

  <Accordion title="Multi-Currency Payments">
    Pay in 100+ local currencies. Workers receive their pay in the currency they want, with transparent FX.
  </Accordion>

  <Accordion title="Tax Forms & Reporting">
    For US contractors, Shor collects the right tax form (W-9 for US persons, W-8BEN for foreign individuals, W-8BEN-E for foreign entities) at onboarding. For employees on full EOR, Shor handles statutory withholdings where applicable. All records are stored and audit-ready.
  </Accordion>

  <Accordion title="Compliance Updates">
    Labor laws change. Minimum wages go up, tax thresholds shift, new statutory benefits are introduced. Shor tracks the changes so your contracts and payroll stay current.
  </Accordion>
</AccordionGroup>

## Contractors vs. Employees

Choosing the right engagement matters. Misclassification can create tax and legal liability.

<CardGroup cols={2}>
  <Card title="Contractors" icon="handshake">
    Independent workers with their own tools and schedule. Paid per invoice, milestone, or retainer. No statutory benefits. Simpler onboarding, lower cost.
  </Card>

  <Card title="Employees" icon="id-badge">
    Full-time workers integrated into your company. Paid on a regular payroll schedule. Receive statutory benefits, tax withholding, and protected notice periods.
  </Card>
</CardGroup>

<Note>
  Unsure which applies? Reach out to [support@shorpay.com](mailto:support@shorpay.com) before sending the contract — our team can recommend the right classification based on the worker's country and role.
</Note>

## Where Shor Operates

Shor supports contractor payments in almost every country and full employee hiring (EOR) across a growing list of countries. See the full breakdown in [Global Coverage](/platform/global-coverage).

## Next Up

<CardGroup cols={2}>
  <Card title="Quick Start for Employers" icon="rocket" href="/quickstart/employer">
    Set up your company and run your first payment.
  </Card>

  <Card title="Quick Start for Professionals" icon="user-plus" href="/quickstart/professional">
    Create your profile and get paid.
  </Card>
</CardGroup>