Hiring international contractors can be useful but comes with challenges like IRS requirements or foreign labor laws. This guide covers the required filings to maintain a nonprofit corporation in Pennsylvania.The most important first step to working with independent contractors is to understand how they differ from your employees. International Independent Contractors are non-US-based service providers who perform a specific skill outside the usual scope of University activities. No consequence in paying international contractors, it's on them to properly report their income to their government. Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. All US employers must properly complete Form I9 for every individual they hire for employment in the United States. This includes citizens and noncitizens. Do you need a 1099 for international contractors? Your guide for understanding how to hire and pay independent contractors around the world.