What are the requirements if all work is performed outside the United States?
When the work is performed outside the United States , (the individual never enters the US ), the monies earned are neither reportable nor taxable. A Social Security Number or ITIN is not required, but the person should provide one if he/she has one. Route the paperwork to Payroll Services for review. Paperwork will then be forwarded to Disbursement Control for process. Is there any year-end reporting? Honoraria or Payments for Services Rendered: Yes. Form 1042S will be generated by the State of Kansas in January for the previous calendar year. The form will be mailed to payee’s permanent address in their country of residence. Payment and tax information is supplied to the IRS as well as tax authorities in the payee’s country of residence. Incidental Expenses Reimbursement Only: No reporting is required.
When an independent contractor performs a service entirely outside the United States (the individual never enters the US), the monies earned are neither reportable nor taxable in the US. Please refer to Disbursement Control “Policies and Procedures for Classifying and Paying Independent Contractors”. Use a Disbursement Control Check Request Form, attach an invoice or state clearly what services were performed outside of the U.S., and what time period.
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- What are the requirements if all work is performed outside the United States?
