Onboarding Non-US Contractors

When onboarding non-US contractors, it's important to understand the different tax forms involved. Unlike US contractors, foreign contractors do not receive a 1099 form, which is used to report income to the IRS.

Additionally, non-US contractors are not required to fill out a W9 form. This form is primarily used by US-based independent contractors and freelancers to provide their taxpayer identification number to entities that will pay them income.

Instead, foreign contractors are often asked to complete a W-8BEN form. This form is used by nonresident aliens who do work and/or make income in the U.S. or foreign business entities who make income, to tell the IRS they are not U.S. taxpayers. It also includes a declaration that they are the beneficial owner of the income for which the form is being submitted.

To summarize, when onboarding non-US contractors, you should not request a 1099 or W9 form. Instead, request the completion of the W-8BEN form.