Form 1099 is used to report payments made to an independent contractor. Expat business owners may need to file Form 1099 when working with contractors abroad. Failing to file Form 1099 as required could result in penalties.
The W-8BEN and W-8BEN-E forms are essential for foreign independent contractors and businesses.
Passed in 2019, AB-5 implemented a stricter test for classifying workers as contractors in California. It led to thousands of truck drivers being classified as employees entitled to minimum wage, benefits and job protections.
Independent truckers are in the same general family as owner-operators or lease contractors, but there are some important differences. Unlike a lease contractor, you'll buy or lease your vehicle from a third party rather than the carrier you contract with.
What Is an Independent Contract Truck Driver? Independent contract truck drivers don't necessarily work for a single company. They are independent, as the name implies. Owner-operators can subscribe to load boards to find loads or work with third-party brokers.
Passed in 2019, AB-5 implemented a stricter test for classifying workers as contractors in California. It led to thousands of truck drivers being classified as employees entitled to minimum wage, benefits and job protections.
Form 1099-NEC and 1099-MISC: If your business pays a foreign contractor with a temporary TIN (ITIN) $600 or more for services provided within the United States, then you can file Form 1099-NEC or Form 1099-MISC to report these payments to the IRS.
Today, it's possible to hire independent contractors from any part of the world, thanks to improvements in technology and communications. It's a great idea to consider Mexico if you're looking to expand your team. Its proximity and strong economic ties to the US are definite advantages.