16 June 2022 1:51

I have a US based company that does business in Europe, and contracts freelancers in other countries. What forms do I need to file? [closed]

Can you hire freelancers from other countries?

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.

Do I have to issue 1099 to foreign contractors?

Generally, no Form 1099 is required for payments to foreign contractors or services performed outside the US and no withholding is required (as long as the foreign contractor is not a US person and the services are wholly performed outside the U.S).

How do I pay freelancers from another country?

5 crucial steps when paying freelancers overseas

  1. #1 Agree on the payment terms and legal jurisdiction. …
  2. #2 Ensure tax compliance. …
  3. #3 Choose the right payment method. …
  4. #4 Freelance marketplaces and management systems. …
  5. #5 Do a KYC/AML before making your first payment.

Can US companies hire foreign freelancers?

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.

Can a US company hire a foreign consultant?

Yes, US companies can hire foreign workers either as full-time employees or independent contractors, with the option of either working remotely in their home country or relocating to the US with the relevant labor certification and visa.

Do foreign freelancers pay taxes?

Contractors and freelancers overseas can reduce their tax liability by applying the Foreign Earned Income Exclusion (FEIE). However, this doesn’t exempt you from paying self-employment taxes on foreign income, including Social Security taxes, which need to be paid before you can use the FEIE.

What is the difference between Form 1099-MISC and 1099 NEC?

The 1099-NEC is now used to report independent contractor income. But the 1099-MISC form is still around, it’s just used to report miscellaneous income such as rent or payments to an attorney. Although the 1099-MISC is still in use, contractor payments made in 2020 and beyond will be reported on the form 1099-NEC.

Do foreign contractors have to pay US taxes?

How to approach paying foreign contractors. There is no requirement for U.S. companies to file an IRS 1099 Form to pay a foreign contractor. But as noted above, the company should require the contractor file IRS Form W-8BEN, which formally certifies the worker’s foreign status.

How do I file a 1099 for a foreign contractor?

If the foreign contractor is not a U.S. taxpayer, and all of the contracted services were performed outside the U.S., a Form 1099 is not required. Instead, you will need to ask the contractor to complete a Form W-8BEN. The Form W-8BEN certifies that the foreign contractor is not a U.S. taxpayer.

Can I work remotely for a US company from Europe?

You can work remotely for the US and live on another side of the world, but you still need to pay attention to local tax and residence regulations. For instance, if you are working for a US company but living permanently in a European country, you are theoretically working there.

Can you work remotely for an American company in another country?

Check with your employer before you apply

Simply because the option to work remotely is provided by an employer, that doesn’t necessarily mean employees can work remotely from anywhere, as some employers want employees to reside in the same state or within certain areas.

Can you legally work remotely in another country?

There’s no universal visa rule for every country in the world. Some countries might allow you to work on a tourist visa if the scope of your work is limited to your country of residence, for example, while others might take a harsher approach, even if you’re not interacting with the local workforce.

Can I work remotely for a company in another country?

It’s possible, but there are some important HR and payroll considerations to be aware of and plan for, because with digital nomads, the regular rules may not apply.

Can I work remotely for a foreign company?

As long as your foreign employee works remotely form their own country, there is no need for a work visa either. However, if you were to bring them to the US either for training or an extended stay, then they would need a business visa. Subscribe to get more insights like this.

Can I employ someone in another country?

In Summary: The U.S. Labor Department, the IRS, and U.S. Immigration lawyers all say it is legal for a U.S. company (or any U.S. employer) to hire foreigners living outside of the U.S. as remote (or telecommute) independent contractors.

Can I work remotely in France for a US company?

Working remotely in France for a US company is possible and can be done in two main ways: staying in France for a period under 3 months or applying for one of the French visas for a long-term stay. Working remotely in one country and living in another isn’t that easy.

Can I work remotely in Germany for a US company?

In Germany there is (currently) no legal entitlement to work from home or to mobile work. The employee is therefore only allowed to work from home or remotely if this is permitted either under an employment contract, a company agreement or provided for on a case-by-case basis as approved by the employer.

Can I work in the US and live in Europe?

An individual can work remotely for a US company and live in Europe for at least 90 days with only a tourist visa. If they stay longer than 90 days however, one will need a residence permit and work permit for the corresponding country. After residing in one place for over 183 days, a person will become a tax resident.

How can an American work in Europe?

Americans do not need an employment visa to enter Europe. They can cross the border visa-free with ETIAS but will need to apply for a work permit within 3 months of arrival.
Work visa for individual European countries

  1. Passport.
  2. Passport-style photo.
  3. Work contract which covers minimum economic funds.
  4. Medical certificate.

How can an American get an EU work permit?

Here’s how you do it:

  1. Research the available work visas of the EU member state you’ll work in.
  2. Find out if you need a job before obtaining your visa, as some EU states require.
  3. Apply for your work visa with the supporting documents.
  4. Attend the visa interview when it’s scheduled and remember to be on time!

Which European country gives work permit easily?

Estonia. Estonia is one of the easiest European countries to get a work visa for digital nomads. It offers an excellent visa program allowing you to stay in Estonia for a year as a tourist while working remotely.

Will European companies hire Americans?

Unfortunately, due to strict labor laws, Americans have a significant disadvantage over Europeans when it comes to finding a job in the European Union. Citizens of the EU can work in any member country of the EU without a work permit, but Americans need an employer to sponsor their work visa.

Which is the best website for abroad jobs?

International Job Sites for Aspiring Expats

  1. Indeed Worldwide. …
  2. Jooble. …
  3. CareerBuilder International. …
  4. CareerJet. …
  5. Go Abroad. …
  6. Going Global. …
  7. Monster Worldwide. …
  8. Teaching English as a Foreign Language (TEFL)

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