Can a US company hire a Mexican contractor?

Today, it's possible to hire independent contractors from any part of the world, thanks to improvements in technology and communications. It's a great idea to consider Mexico if you're looking to expand your team. Its proximity and strong economic ties to the US are definite advantages.

US Legal Forms
Agreements - Agreement Forms
International Independent Contractor Agreement

Pay Foreign Independent Contractor Without Supervision In Texas

Category:

Contracts - Independent Contractors - International

State:

Multi-State

Control #:

US-0028BG

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Instant download

Description

The Foreign Corrupt Practices Act of 1977 resulted from bribery of foreign government officials by Lockheed Aircraft Company. This Act is designed to prevent the bribing of foreign officials in order to obtain foreign government contracts. Payments to foreign officials for â€œfacilitation,â€ often referred to as grease payments, are not prohibited under FCPA so long as these payments are made only to get officials to do their normal jobs that they might not do, or would do slowly, without some payment. These payments can be made only to secure a permit or license; obtain paper processing; secure police protection; provide phone, water, or power supply; or similar such actions.

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FAQ

The IRS requires a flat 30% withholding on ALL types of payments to foreign national individuals UNLESS: The individual has a U.S. tax identification number (SSN or ITIN) and qualifies for a tax reduction under the tax treaty between the U.S. and their country of tax residency.

However, the IRS doesn't require a company to withhold taxes or report any income from an international contractor if the contractor is not a U.S. citizen and the services provided are outside the U.S. filing forms 1099 is required if: The contractor is located internationally but is a U.S. citizen.

Today, it's possible to hire independent contractors from any part of the world, thanks to improvements in technology and communications. It's a great idea to consider Mexico if you're looking to expand your team. Its proximity and strong economic ties to the US are definite advantages.

Foreign vendors do not complete the Substitute Form W-9; foreign persons or entities must submit one of five available forms. The vendor must determine the one most appropriate to their United States tax status for reportable transactions.

Form 1099-NEC and 1099-MISC: If your business pays a foreign contractor with a temporary TIN (ITIN) $600 or more for services provided within the United States, then you can file Form 1099-NEC or Form 1099-MISC to report these payments to the IRS.

Conversely, if the independent contractor is not a US person and did not perform any of their services within the US, you will not be required to issue Form 1099. Instead, the foreign contractor will have to complete and file Form W-8BEN.

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The equivalent form for overseas contractors is W8BEN. It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.Need to pay international contractors? This how-to guide provides the best methods and resources to make overseas payments quickly, safely and securely. Use the Independent Contractor or Employee Form for payments to independent contractors unless they meet one of the following categories. Independent contractors perform services in exchange for compensation and are generally free from the employer's control and oversight. Learn how U.S. companies can hire foreign independent contractors, covering legal aspects, benefits, and compliance tips. To begin working as an independent contractor in the US, you'll first need to choose a legal structure for your business. A person working in the employer's place of business is physically within the employer's direction and supervision. If an independent contractor is actually an employee that involves significant penalties to the employer as well as back pay and penalties to the employee.

Pay Foreign Independent Contractor Without Supervision In Texas

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FAQ

Do you have to withhold 30% on payments to a non-US independent contractor?

Do I need to file a 1099 for a foreign contractor?

Do I need to issue a 1099 to a foreign contractor?

Can a US company hire a Mexican contractor?

Do I have to prepare a 1099-NEC for a foreign contractor?

Do I need to send a 1099-NEC to a foreign contractor?

Do I need to send a 1099 to a foreign contractor?

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