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Tax liability for outsourcing outside US
Thread poster: Esther Hermida
Esther Hermida
Esther Hermida  Identity Verified
United States
Local time: 06:45
English to Spanish
+ ...
Apr 8, 2005

Does anyone know how to handle the tax liability from my end?

Say, a company hires me as a middleperson to do a large translation project, such as the one I have posted in jobs. If it's in the US I issue a 1099 so that contractor can pay his/her won taxes. What if I were to find a translator outside the US? I have a very small translation company and I'm not familiar with these procedures. Help, anyone?
 
00000000 (X)
00000000 (X)
English to French
+ ...
W-8 Apr 8, 2005

Hola mi tocaya!

You make them sign a W-8 and include what you pay them as a business expense. But, please, do get an accountant. It should cost you between $300 and $400. It's not much for all the work it saves you and the peace of mind it buys you.

Bye!
Esther

[Edited at 2005-04-08 17:44]
 
Mark Xiang
Mark Xiang
Local time: 21:45
English to Chinese
+ ...
Ask the translator to sign a W-8 form Apr 8, 2005

According to my experience.

Mark
 
Esther Hermida
Esther Hermida  Identity Verified
United States
Local time: 06:45
English to Spanish
+ ...
TOPIC STARTER
Gracias. Apr 9, 2005

Mil gracias Esther. La sugerencia del contador me parece muy buena idea.

Atentamente,

Esther
 
Esther Hermida
Esther Hermida  Identity Verified
United States
Local time: 06:45
English to Spanish
+ ...
TOPIC STARTER
Thanks Mark. Apr 9, 2005

I'll read up on it.

Thanks,

Esther
 
Sandra Alboum
Sandra Alboum  Identity Verified
United States
Local time: 09:45
Member (2003)
Spanish to English
+ ...
No W-8 Apr 9, 2005

Esther Hermida wrote:

I'll read up on it.

Thanks,

Esther


Esther,

I'm not a tax attorney, but I can tell you that if you subcontract someone outside of the US (and that person is not a "US Person" under IRS definitions), then you do not have to issue them any paperwork at all, nor do you have to have them fill out a W-8. As long as the relationship is as a freelancer, and not an employee, you shouldn't have to do anything. I use a lot of people outside of the States, and don't have W-8s for any of them. And my accountant and lawyer didn't scream at me for it!

Sandra
 


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Tax liability for outsourcing outside US







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