When you hire foreign contractors, you have a few tax forms to take care of, even though the contractor isn't on your company's payroll. This guide will help you learn how to hire overseas contractors and pay them compliantly.How to hire overseas contractors in a foreign country. In this article, you'll learn the legal dos and don'ts of international hiring. This article will outline four steps for hiring international contractors overseas and how Wise can help cut costs on global payments. A guide to Form 1099 for companies with US contractors. As stated in the context, foreign contractors need to complete IRS Form W8BEN to certify their foreign status and avoid US tax withholding. What would a US-based startup need to do to hire an overseas contractor for 2 months? Local Coordinators are independent contractors who place foreign exchange students with volunteer American host… Concrete Laborer. STRUCTURAL. As you hire contractors abroad and have them fill out the W8 BEN, they might have questions about the process.