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Updated over 3 years ago,
Foreign contractor tax withholding
For foreign contractors do you withhold tax of their pay? I may be too cautious about this. But the IRA ruling stated that for non-US workers, Payer (employer) will need to withhold 30% of their pay, wow. I remember in the past, the Fiverr VAs asked me to pay outside of Fiverr, I sometimes agree because they can save 20% fee, I really was doing a favour. But if this VA stays on for months, the payroll can get to a large amount. Do I risk not to withhold the 30% or do I ask them to go back to be paid inside Fiverr assuming Fiverr is taking care of tax issues for the VAs? What's your take and how do you suggest doing the payroll and deductions? I need to be cautious and prepared about withholding their tax.