USA Contractor in a foreign country

[David Berman]

I have a web-based business and I employ a freelance programmer in Asia. I am in the USA. He works for me at his desk in a foreign country.

My question is how do I handle this tax-wise? Do I just send him a 1099 like would an American contractor? I have never dealt with anything like this before.

 

[Bad Medicine]

I have a web-based business and I employ a freelance programmer in Asia. I am in the USA. He works for me at his desk in a foreign country.

My question is how do I handle this tax-wise? Do I just send him a 1099 like would an American contractor? I have never dealt with anything like this before.

IRS Publication 515 - Withholding of Tax on Nonresident Aliens and Foreign Entities

https://www.irs.gov/uac/Publication...ax-on-Nonresident-Aliens-and-Foreign-Entities

 

[David Berman]

Bad Medicine, thank you for your answer.

Now, just out of curiosity, does my foreign consultant have to pay taxes to the IRS on this?