When a US company hires independent contractors who are US residents, it should have contractors complete Form W9. Understand tax requirements when hiring a foreign contractor.Our guide provides essential insights for seamless compliance with international tax laws. The contractor must complete, sign, and submit the W8BEN to the employer before they can receive compensation. See Form 306 (Word, PDF). Create an international contractor agreement that defines the fees, payment terms, and scope of work. Onboard the contractor and begin work. 1. Learn how to determine whether a person providing a service to you is an employee or an independent contractor. If the payee is a foreign company or a foreign individual (non-resident alien for U.S. tax purposes), they should complete the appropriate Form W-8. Find top rated independent contractor agreement lawyers for Houston, TX to hire.