Understand tax requirements when hiring a foreign contractor. Our guide provides essential insights for seamless compliance with international tax laws.Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. You'll need to solicit applicants, review their applications, and make an offer with an independent contractor agreement. When a US company hires independent contractors who are US residents, it should have contractors complete Form W9. Complete a new REV-419 every year or when your personal or financial situation changes. Photocopies of this form are acceptable. International Independent Contractors are non-US-based service providers who perform a specific skill outside the usual scope of University activities. The following information covers approved methods of contracting and paying for services provided from outside the US. A foreign independent contractor is a nonU.