Business

Luxury Business Cards on Pinterest. Set up payroll. Article 10 Steps to Setting Up a Payroll System Whether you have one employee or 50, setting up a payroll system not only streamlines your ability to stay on top of your legal and regulatory responsibilities as an employer, but it can also save you time and help protect you from incurring costly Internal Revenue Service (IRS) penalties. Here are 10 steps to help you set up a payroll system for your small business. Obtain an Employer Identification Number (EIN). Printing Service Plastic Cards. Spot Gloss Finish Business Cards. International Tax Blog: Form 1099 for Payments to Foreign Contractors for Services? One question that often comes up is how a domestic U.S. business should treat payments to a foreign contractor for services performed outside the U.S.

Is a Form 1099 required? Is withholding required? As long as the foreign contractor is not a U.S. person and the services are wholly performed outside the U.S., then no Form 1099 is required and no withholding is required. Not a U.S. Person So, how do you “know” that the foreign contractor is not a U.S. person? In this circumstance there is no need for the foreign contractor to get a U.S. taxpayer identification number or to complete Parts II or III of Form W-8BEN. The Form W-8BEN is not filed with the I.R.S. Where Were the Services Performed? Now that you know that the foreign contractor is not a U.S. person, how do you know that he or she is not performing some or all of the services in the U.S.? You won’t know if the services are performed in the U.S., unless you ask. When in Doubt, Withhold. U.S. Tax Withholding on Payments to Foreign Persons. Check website uptime, downtime, performance and availability.

Reporting Payments to Independent Contractors. If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation. You made the payment to someone who is not your employee; You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations); You made the payment to an individual, partnership, estate, or in some cases, a corporation; and You made payments to the payee of at least $600 during the year.

Form 1099-MISC, Miscellaneous Income (PDF), is transmitted with Form 1096, Annual Summary and Transmittal of U.S. Information Returns (PDF), which is similar to a cover letter for your Forms 1099-MISC. Nonemployee compensation paid to nonresident aliens is reported on Form 1042-S, Foreign Persons' U.S. Similar to Form 1096, Form 1042, Annual Withholding Tax Return for U.S. WAVE Report of 風城駕駛研習社－－中國留學生服務