Need Help on Hiring Outside the U.S.

[jen24815]

Hi,

I live in the U.S. and I haven't had any experience working with independent contractors outside the country.

I have someone I want to contract some work out to that's overseas...what is the situation with taxes, etc.?

I know if I hire someone in the U.S. on an independent contractor basis, they are responsible for their own taxes, but what's the deal with a non-US citizen? Any special things I have to do?

Thanks,

Jenny

[Shane]

My humble thought is "think of hiring a company in another country and then they worry about taxes, ....."

Just a thought,
Shane

[eljefe3]

Unless it's for a large sum of $$, I wouldn't be too concerned as it will cost you more in billable time from your attorney or accountant to advise on this matter, than what you actually pay the person to do the work IMHO.

That being said, there is a law that 30% is supposed to be withheld on foreign companies (and foreign citizens) income dreived in the U.S.

[Shane]

eljefe3,

Does it matter where the work is done (e.g. in the US or in another country)?

..... Shane

[steveWasiura]

just curious, for my own research, what are you hiring them to do, and is it because they are cheaper than a us based person?

and you would probably never have to worry about the taxes, and if you are, use a third party website to conduct the transaction (like eLance.com), therby tranferring the tax handling risk to the website service.