Hiring Overseas Contractors For Small Business In Phoenix
Description
Form popularity
FAQ
What are Top 10 Highest Paying Cities for Overseas Contractor Jobs CityAnnual SalaryHourly Wage San Francisco, CA $94,064 $45.22 Santa Clara, CA $93,766 $45.08 Sunnyvale, CA $93,703 $45.05 Livermore, CA $93,650 $45.026 more rows
The average annual salary of a general contractor in the United States is $62,125.
Freelancers and Independent contractors must file a US tax return even when working overseas. The IRS provides a variety of tax benefits for Americans living abroad. Using these expat tax benefits; many overseas contractors can reduce their US tax bill significantly.
Contractors must complete a Form W-9 if they're US citizens or residents and a Form W8-BEN if they're based entirely abroad. Both forms are available to download from the IRS website. From the moment the contract begins, you must store these documents for at least four years.
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.
Require foreign freelancers and international vendors to submit IRS Form W-8. When hiring an international freelancer or vendor, you should have them fill out an IRS Form W-8BEN or W-8BEN-E to verify their foreign status. Form W-8BEN should be completed by an individual, while Form-8BEN-E is for entities.
The W-8BEN and W-8BEN-E forms are essential for foreign independent contractors and businesses. They help verify the contractor's country of tax residence, enabling them to claim deductions or exemptions from US taxes.
If you're a sole-proprietor, self-employed or a certain type of partnership, you must fill out your T1 General, that's your standard personal income tax return. You must also complete a separate T2125 “Statement of Business or Professional Activities”. This is where you specify: Business and professional income earned.
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. The US company may also need to file Form 1099-NEC if certain conditions are met, though this is more common for domestic contractors.
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.