Do I have to report taxes when recieving check from employee in another country?

Question

I have been offered a job as a personal assistant for a company that is based out of china and I live in the u.s.a. They plan to pay me $500/week but I don't think they are deducting any taxes. How do I know how much to put aside so that when tax time comes I will have the funds available if I need to pay taxes?

Answer 1

Yes, you are required to report all sources of income. Being that this company is headquartered in China, no income will be reported to any United States Agency. However, the income you will be receiving will be treated like self employment income and be subject to social security taxes. Assuming you started in mid May and work until the end of the year: 34 weeks x $500.00 = $17,000.00
Being that this is self employed work, you may have some expenses you can deduct thus lowering your tax. Look at Federal tax form: Schedule C

1) Social Security Taxes
$17,000 x 6.2% = $1,054.00

2) Medicare Taxes
$17,000 x 1.45% = $246.

3) These two taxes are known collectively as FICA taxes.

You can expect to pay (assuming you do not deduct any expenses) FICA taxes of $1,300.50 to the Feds. Half of this amount, $650.25 will be deducted on page 1 of your federal tax return: One-half of self employment tax.

You did not state marital status, state of residence or the number of exemptions claimed. So it will be impossible to figure an estimated federal tax or estimated state tax. But I would recommend making estimated payments so that you do not get hit with underpayment penalties and interest.

Answer 2

You are not moving to China, right?

In that case, your employer is required by law to deduct federal income tax and payroll taxes from your wages. You should inform them of that if they don't know it already.

I get a couple of inquiries a week from companies based abroad who have employees in the US. Not only do they have payroll tax obligations, they may very well be considered engaged in business in the US themselves, leading to possible taxpaying obligations for the employer.

You and they should consult a qualified tax advisor so as to get this arrangement set up properly at the beginning and avoid headaches later on.

Answer 3

Yes you will have to report it and pay taxes on it at the end of the year. They cant take taxes because its a different country. If you dont report it and the IRS finds out your screwed.

Answer 4

She ought to be finding for a different interest. This business corporation sounds like they are approximately to pass under. NO that's no longer legal for them to in basic terms withhold greater effective despite in the event that they actually DID deliver it to the IRS - and from the way that they had one tale, then yet another, i'd wager the probabilities of that being actual are extraordinarily low. The would have had to pay something greater effective to the IRS for his or her taxes yet i'd be genuine shocked in the event that they paid it as greater effective withholding for his or her workers. She ought to call her state hard artwork branch and record that she wasn't paid what replaced into simply by her. yet whilst the people merely have not got the money, that may not get the money on your mom.

Answer 5

Yes, you have to pay taxes. You should set aside 30% and pay it quarterly.

But as a professional like Bernard Gartland.

Answer 6

You must report all earnings on your tax form.
Whether you will have to pay taxes or not depend upon other issues about that you report on your tax form.

Answer 7

Are you sure this isn't a scam?

Why would some in China need a personal assistant here in the states? What would you be doing?

Answer 8

yes you have to pay taxes, to get the exact amount talk to your local comptroller.

Answer 9

talk to an accountant