Outsourcing and Taxes

by mikeroosa

Posted: 13 years ago 10 replies

INTERNET MARKETING

I'm a US resident and thinking of hiring a VA from the Philippines to maintain my websites and help to build backlinks and create content.

If I were to hire someone in the US I know I'd need to send them a 1099 as an independent contractor.

How does it work with hiring a foreigner as an independent contractor?

#outsourcing #taxes

ArticlePrince 13 years ago

I know you'll hate this answer, but you should ask an accountant what's best. What we do could be wrong or outdated, and if you do one thing worng, you can get busted. Not worth the risk :-/ Just my opinion
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- edmltw 13 years ago
  
  Consult the VA's manager about this matter.
  
  That VA doesn't have a manager?
  
  Don't hire him.
  
  Regards,
  Ed
  
  Thanks
  
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  Alex Wayo 13 years ago
  
  Originally Posted by edmltw
  
  Consult the VA's manager about this matter.
  
  That VA doesn't have a manager?
  
  Don't hire him.
  
  Regards,
  Ed
  
  What do you mean? I have several Filipino VAs who've been working for me for years, and they've never had any manager.
  
  mikeroosa, an independent contractor works best for me and for all of my partners who have a VA.
  
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  YanKirby 13 years ago
  
  Originally Posted by edmltw
  
  Consult the VA's manager about this matter.
  
  That VA doesn't have a manager?
  
  Don't hire him.
  
  Regards,
  Ed
  
  Im sorry, but that's way too far fetched. Why would you want a manager for? Save your money, you dont need one.
  
  Best,
  
  -Yan Kirby
  
  Thanks
  
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myeanne 13 years ago

Hi Mike, I would like to help you out. Hit me up to discuss.
Hope to hear from you.
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tyroneshum 13 years ago

I'm outsourcing to the Philippines and I wasn't obliged to pay their taxes. That's why I outsourced to them!

Actually, they're the ones responsible to pay for their own taxes through your fixed monthly payment for example.
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sandra98 13 years ago

I've read that if the services are provided by a non-US resident living in another country, there is no need to issue a 1099.

That said, this is something that you best consult with an accountant or someone who is a professional in accounting.
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- mikeroosa 13 years ago
  
  I agree I'll talk to my accountant today, but just wondering what the rest of you were doing. Thanks.
  
  Thanks
  
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sarahberra 13 years ago

Go to an accountant. I think I know the answer, but I don't want to give out the wrong advice.
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YanKirby 13 years ago

Guys, just to make it clear:

You dont have to worry about taxes when outsourcing to the Philippines. Fact be told, im pretty sure 80%-98% of VA's dont even declare what they are making money from online ventures.

Surprising as it may seem to some but that's just how things go around here. Might well be another good reason to scale your business up through outsourcing.

I should know, im a full time IMer in PH and have been working with my own SEO team for years.

Hope this clears things up.

-Yan Kirby
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