Discussion:Tax on overseas wages
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| Revision as of 23:04, 25 January 2007 Sandysea (Talk | contribs) (But if they are) ← Previous diff |
Revision as of 01:07, 30 January 2007 Mygod1979 (Talk | contribs) (Indeed, putting) Next diff → |
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| {{ForumReplyPost|UserID=Sandysea|Date=25 January 2007|Text=But if they are "employees" then you open a can of worms...don't pick it up as wages by all means!!}} | {{ForumReplyPost|UserID=Sandysea|Date=25 January 2007|Text=But if they are "employees" then you open a can of worms...don't pick it up as wages by all means!!}} | ||
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| + | {{ForumReplyPost|UserID=Mygod1979|Date=30 January 2007|Text=Indeed, putting them as "employee" is complicated. I called IRS twice for this issue. The did not have a answer for sure yet. I am still waiting for their replying E-mail. | ||
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| + | What they told me so far is that since these two employees are not eligible for social security or medicare, I "might" not need to withhold the SS and Medicare. About payroll tax, one IRS representative told me that "she think" there is no need to withhold, since they are not in US. But she is not 100% sure, so she requested some specialist to send me an E-mail. | ||
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| + | I am now putting these two Taiwanese coworker under my friend's Taiwanese company's payroll, then I pay my friend's company as Outsorced Services. | ||
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| + | I will keep my case posted.. | ||
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| + | Thanks for the answers..appreciated... | ||
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| + | Sincerely, | ||
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| + | Wei | ||
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| + | P.S. I am also trying to find an accountant to help me do the bookkeeping, and tax filing. I would like to find someone who can help me mostly via internet.. could some one give me recommendation? (My company set up November last year, has no income yet, and is requested to file 941, 940, and 1065)...basically, I have no employee now... I have one individual contractor in FL and, as you know, two Taiwanese working for me in Taiwan. | ||
| + | If you would like to give me some information, please E-mail me at service@chineseinkonline.com | ||
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| + | Thanks... | ||
| + | }} | ||
Revision as of 01:07, 30 January 2007
Discussion Forum Index --> Tax Questions --> Tax on overseas wages
| 25 January 2007 | |
| My US company is going to hire some Taiwan citizens in Taiwan.
I think that I will not need to withhold medicare, social security, income tax, or unemployment tax for them, since they are not American citizen. My question is, how can I put their wages as my US company's expense? I do not need to pay tax to US government for their salary, but I can use their salary as expense to deduct tax?? It just sounds too good to be true for me ... Anyone has a good explanation? Thanks in advance... Wei :-) | |
| 25 January 2007 | |
| You cannot hire employees and not withhold taxes...if they are employees, then they are working in the US or you are conducting business in Taiwan and need to report that to the IRS. You can hire independent contractors in Taiwan and not pay taxes on those individuals, but if you have employees in a country, then you have nexus in that country as well.
You will be essentially operating a branch in Taiwan and the earnings in that country will be US source income...best to keep it as an independent contractor if you can :) | |
| 25 January 2007 | |
| The work is done in Taiwan by Taiwan citizens (Outsourced). You are correct that the Taiwan citizens are not subject to US tax. I would deduct the expense as "Outsourced Services". If these services were performed in the US than the services would be subject to US tax. | |
| 25 January 2007 | |
| But if they are "employees" then you open a can of worms...don't pick it up as wages by all means!! | |
| 30 January 2007 | |
| Indeed, putting them as "employee" is complicated. I called IRS twice for this issue. The did not have a answer for sure yet. I am still waiting for their replying E-mail.
What they told me so far is that since these two employees are not eligible for social security or medicare, I "might" not need to withhold the SS and Medicare. About payroll tax, one IRS representative told me that "she think" there is no need to withhold, since they are not in US. But she is not 100% sure, so she requested some specialist to send me an E-mail. I am now putting these two Taiwanese coworker under my friend's Taiwanese company's payroll, then I pay my friend's company as Outsorced Services. I will keep my case posted.. Thanks for the answers..appreciated... Sincerely, Wei
Thanks... | |
