You'll need to solicit applicants, review their applications, and make an offer with an independent contractor agreement. The following information covers approved methods of contracting and paying for services provided from outside the US.Create an international contractor agreement that defines the fees, payment terms, and scope of work. Onboard the contractor and begin work. 1. Pennsylvania law requires withholding at a rate of 3.07 percent on non-wage Pennsylvania source income payments made to nonresidents. International Independent Contractors are non-US-based service providers who perform a specific skill outside the usual scope of University activities. To register to do business in Pennsylvania, a corporation or LLC must submit a signed foreign registration statement to the DOS. If the foreign contractor did some or all of the work related to the contract in the U.S., the payor has additional obligations under IRS rules. If the company is located in the U.S., you will issue a Form W8BEN for the contractor to complete. Independent contractors might draw up a contract and present it to their client before beginning the project.