Pay Foreign Independent Contractor Without Supervision In Fulton
Description
Form popularity
FAQ
U.S. companies can hire non-U.S. citizens as independent contractors without a work visa, provided the contractor performs the work from outside the U.S.
However, the IRS doesn't require a company to withhold taxes or report any income from an international contractor if the contractor is not a U.S. citizen and the services provided are outside the U.S. filing forms 1099 is required if: The contractor is located internationally but is a U.S. citizen.
“U.S.-source compensation payments made by a U.S. business to a non-U.S. individual who is an independent contractor and who is not treated as a U.S. tax resident for the taxable year will generally be subject to 30% gross withholding.”
Form W-9. The IRS requires contractors to fill out a Form W-9, a request for a Taxpayer Identification Number and Certification, which you should keep on file for at least four years after the hiring. This form is used to request the correct name and Taxpayer Identification Number, or TIN, of the worker or their entity ...
Employers are required to check the work authorization of employees and can face fines and penalties for failing to do so or for hiring employees who they know do not have work authorization. All immigrants regardless of legal status are able to earn a living as independent contractors by using an ITIN number.
While this opens doors to diverse talent and skill sets, it also introduces unique challenges in terms of tax compliance. One critical aspect of this compliance involves Form 1099, which US-based businesses may need to issue to foreign contractors for reporting payments made during the tax year.
Foreign independent contractors must submit IRS Form W-8BEN (for individuals) or IRS Form W-8BEN-E (for entities) to the US company they work for. This form certifies the contractor's foreign status and can help reduce or eliminate withholding tax on payments. Purpose: Certifies foreign status.
