FranklinF
Employee Tax Expert

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  1. US companies can hire international workers legally.
  2. In general, you are required to have established a Legal Entity in the workers' country of residence in order to DIRECTLY HIRE EMPLOYEES.
  3. You still have the option to hire INDEPENDENT CONTRACTORS
  4. A U.S. business payor making a compensation payment to a non-U.S. independent contractor must withhold an amount sufficient to ensure that at least 30% of the amount subsequently determined to be U.S.-source income is withheld.
  5. Self-employed U.S. citizens or residents are still subject to SE Tax Rules regardless of where they work !!!
  6. You may apply for the Foreign Earned Income Exclusion as long as all the criteria for such are met.
  7. From ALL the above, we can see that it is VERY IPORTANT to first determine if a foreign person is considered or regarded as a US Citizen for tax purposes. 


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