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posted Feb 28, 2023 12:47:18 PM

Do I need to file a 1042/1042-S when paying a foreign contractor who performed the entire work outside of the US (he completed a W8-BEN)?

Hi, I have a remote contactor form outside us through remote.com. Remote.com sent me 1042-S form also my contractor filled w8ben form. Do I need to file a 1042-s form as a business owner?

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Expert Alumni
Feb 28, 2023 1:27:46 PM

Yes, if you are the business paying him, you need to file the 1042-S.  You are also responsible for withholding taxes at a rate of 30% for your contractor and for submitting them to the IRS. 

 

If you are paying remote.com and they are paying him, then no, you would not need to file a 1042-S, but you would need to issue a 1099-Misc to remote.com