I need your help with this issue. I'm doing some work for a small NY non-profit, who employs people in Cambodia. The issues are, one employee is a US citizen, living and working in Cambodia. I am only withholding FICA taxes for her, and she will get a W-2 at the end of the year. There's another employee who is not a US citizen. She insists that the company is not obligated to give her a W-2 or a 1099. I have not been able to find anyone who can give me a clear answer on this. The company needs to comply with all laws.
Any information will be helpful.
Helen Rosen
Cambodian payroll
Answers
If this person is not a US resident, then she is right. No W-2 or 1099. She need only comply with Cambodian
1
Thank you Shailesh. Can you recommend a Cambodian payroll service?
Helen
That is correct, from the IRS' Publication 515:
"Services performed outside the United States. Compensation paid to a nonresident alien (other than a resident of Puerto Rico...) for services performed outside the United States is not considered wages and is not subject to withholding."
Good luck!
Thank you Bruce.
1
Remember to have the vendor/contractor complete form W-8Ben, the nonresident equivalent to the W-9.
Filed Under:
FP&A