However, I don't remember what it's called.
For an independent contractor you can avoid that hassle and pay them directly but the IRS might ask for proof that the contractor isn't a US citizen living in Canada (in which case you would have to send a 1099-NEC). So you should have them complete a form W-8BEN certifying that they are Canadian.
Note that I am not a tax lawyer and you should consult one before making any decisions.