Reporting Payments to Independent Contractors: Forms 1099-NEC & 1042-S
To claim treaty benefits, a foreign contractor must provide a properly completed IRS Form W-8BEN (for individuals) or W-8BEN-E (for entities), certifying their eligibility. Businesses must maintain these forms in their records to justify any reduced or waived withholding tax. If a contractor fails https://www.bookstime.com/blog/bakery-accounting to submit the necessary documentation, the standard 30% withholding applies. This may include using encrypted
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