I have two employees from India that work regular schedules for me, about $5,000 each a year. Are they considered as employees or contracted labor or doesn't it matter since they don't live in the United States. Please give me as much insight on this as you can.
Thank you
2007-07-28 04:44:51 · 2 answers · asked by S J 1 in Business & Finance ➔ Taxes ➔ United States
Which they are depends on their jobs, not on their citizenship. If they are working regular schedules, chances are that they are employees, not contractors.
See http://www.irs.gov/businesses/small/article/0,,id=99921,00.html for info on who is an employee and who is a contractor.
2007-07-28 04:52:30 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Being employees (W-2) or independent contractors (1099 MISC) has nothing to do with there citizenship. If they live and work in India and are not US citizens they may not be subject to SS and Medicare tax. If that is the case it would not make any difference to you which they are as your dollar cost for their work would be the same.
2007-07-28 14:33:40 · answer #2 · answered by ? 6 · 0⤊ 0⤋