W-8BEN question

[Aisle5]

Our company is based in the U.S.. We would like to hire an artist from Europe as a contract worker. I did some research and it looks like we would need the artist to fill out form W-8BEN for the IRS. I was wondering if anyone who has a similar situation could confirm that this is the correct procedure? Also, I assume we would not withhold any taxes from the individual. Is this correct? Thx for any help.

[Adrian Cummings]

I (in the UK) had to fill out one to work with eGames (in the US) some months back as part of the US IRS new tax requirements.

[Desktop Gaming]

I (in the UK) had to fill out one to work with eGames (in the US) some months back as part of the US IRS new tax requirements.
What he said.

[princec]

Is it not just easier to sell consultancy instead? I.e. European company simply invoices US company for "goods & services", like any normal export.

Cas :)

[KG_Brad]

Wow! I never knew that it was that complicated. I thought it was, "Here's your graphics." "Here's your money. Good doing business with ya!"

[princec]

That's pretty much the working relationship I have with BMTMicro. Here's some software, thanks for the money.

Cas :)

[KG_Brad]

Just the way it should be. :)

[Firespirit]

I had this issue when using Google Adsense - i live in Europe. They simply handled it by having me check a box saying I didn't have a company or employees in USA. I now regularly receive payments from USA based Google.

If Google thinks this satisfies the IRS requirements, then this might work for you too.

I cannot get a screenshot from Google as it was in the registration process, but maybe someone else can.

[Vic Davis]

I recommend you go get an accountant. If you have incorporated as an LLC or S Corp then you will definitely need one. You can get a decent one in most places to file your company returns and record your losses until you turn a profit for a few 100 dollars/year in most places in the US YMMV.

[Aisle5]

We are filed as a s-corp. I have a tax preparer and book keeper that meets all of our needs except this one. They have never dealt with hiring a non resident contract worker. I thought this would be a pretty standard practice in today's global environment. Since most of the artist that respond to our job posting are from abroad, I thought other companies must have encountered this same situation.

Still looking for advice from a U.S. based company that has hired non resident contract workers.

[Adrian Cummings]

Put it this way tho, if you don't sign one a portion of your payment(s) could be witheld under this newer IRS tax scheme.

It is a way for them to trace foreign import/export payments I guess i.e. you actually get a US tax payers reference.

Personally I'd rather do it this way on paper than not, unless you want the IRS knocking your virtual door down the line perhaps saying Oi you! :)

The rule of thumb being 'Never piss of the taxman/person!' ever... or you'll live to regret it later - oh yes!