Do I have to issue 1099's to foreign subcontractors?

[kristinelowe]

What is the name of your state? California

I just started as a contractor for a small California company. They have used a number of Canadian subcontractors to do some of their programming work. I have one subcontractor I will issue a 1099 to in California. Do I need to issue anything to Canadian employees?

 

[pattytx]

If these people perform all their services in Canada, never entering the U.S. except for short business trips, a 1099-MISC is not required. They would have to have a social security number and if they do not work or live in the U.S. there would be no reason for them to get one.

However, you may want to contact the Canada Dept. of Revenue and Taxation, as Canada may have their own requirements.

 

[paulnyc1]

What's the verdict then?

If these people perform all their services in Canada, never entering the U.S. except for short business trips, a 1099-MISC is not required. They would have to have a social security number and if they do not work or live in the U.S. there would be no reason for them to get one.

However, you may want to contact the Canada Dept. of Revenue and Taxation, as Canada may have their own requirements.

How do you address the situation where you had Canadians working for you and you have to report their income?

 

[eerelations]

The Canada Revenue Agency will tell you whether or not you have to report your Canadian contractors' income, and what (if any) forms you have to issue to your contractors. Go to
www.cra-arc.ca for contact and other information.

 

[cbg]

And perhaps next time you could start your own thread, instead of resurrecting one that is over three years old.