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Updated over 3 years ago on . Most recent reply

User Stats

27
Posts
6
Votes
Grace B.
  • New York City
6
Votes |
27
Posts

How to do tax withhold for Foreign contractors

Grace B.
  • New York City
Posted

If we hire a Non US VA, I am supposed to withhold 30% of the pay for tax reporting. The contractor wants to use his uncle's construction company LLC located in US to be the contractor and he becomes the subcontractor under that LLC. So that there is no tax withholding.


His uncle signed the W-9 with a TIN. I am going to also ask this VA to have his uncle fill out the Independent contractor agreement indicating he is working for the LLC as a hired subcontractor. Will this be sufficient document for our obligation of hiring non US contractors? Any one with similar experience and how did you handle it? The work we hired him is for sales ,not construction, and he is in overseas. I don't know how does construction LLC jive with his sales position.

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