When considering can a US company hire a foreign independent contractor, it's crucial to know the necessary forms. Foreign independent contractors must submit IRS Form W-8BEN or W-8BEN-E to certify their foreign status and claim any applicable tax treaty benefits.
US company hiring a foreign independent contractor living abroad. The US company doesn't need to report the payments they made to the foreign independent contractor to the IRS if they are not US-sourced income. The company also doesn't need to withhold any tax.
In essence, if personnel working for a contractor require access to classified information in the performance of their duties, the contractor must have an FCL and the personnel must have personnel security clearances (PCLs).
Conversely, if the independent contractor is not a US person and did not perform any of their services within the US, you will not be required to issue Form 1099. Instead, the foreign contractor will have to complete and file Form W-8BEN.
Security clearance must be issued before you can begin working. Examples of organizations that require higher tiers of clearance include national security agencies such as the Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI).
Only jobs that require a candidate to access classified information and secure facilities require a clearance. However, all federal positions require something called a suitability determination. This is a background investigation that helps the government decide if you are suitable for federal employment.
Foreign remote contract workers don't require visas because they are based outside of the US. While these workers may have to come into the country occasionally to fulfill their contractual obligations, they shouldn't have any issues entering as long as they can provide proof that their stay will be temporary.
Not every position in the military requires a clearance (culinary specialists and some support positions may not), but all officers do obtain a security clearance as a part of their service and all service members undergo a background check and complete some form of security application.
Generally, you cannot apply for a security clearance on your own; you must be sponsored by a government agency or a company with a contract with the government. These entities must determine that your job requires access to classified information.