Understand tax requirements when hiring a foreign contractor. Our guide provides essential insights for seamless compliance with international tax laws.Accurately paying foreign contractors requires thorough knowledge of the tax and employment laws in the countries where your business operates. You must fill out and file a T4A-NR slip for each contractor you have employed not living in Canada. The equivalent form for overseas contractors is W8BEN. Need to pay international contractors? This how-to guide provides the best methods and resources to make overseas payments quickly, safely and securely. If she is an independent contractor, then yes, you would file using a Schedule C to report her income. No state tax since Texas so just need to do federal return and no state. Use this guide if you are a payer who makes payments to nonresidents for services performed in Canada, other than in employment situations.