julianne1030
Level 1

Employees and payroll

This is very helpful, thank you. I do have a follow up question. A lot of what I'm reading on IRS sites state that a US payer is required to withhold 30% of what is paid to a foreign contractor unless they are from a country that has a treaty with the US. From what I am reading, each country has a different treaty that reduces or eliminates that 30% withholding. Does this seem right to you? If so, how do you determine the treaty (and therefore the appropriate withholding amount) for each country?

 

Thanks!