Can anyone tell me the correct way to set up international contractors in Quickbooks online? Thanks

I've got you the steps on how to set up international contractors in QuickBooks Online, @scott25.

First, you'll need to enter the contractor as a vendor in the program. If you already added your contractor/vendor, proceed to the next section. 

Here's how:

1. Go to Workers and select Contractors.
2. Select Add a contractor.
3. Enter their information based on their W-9.
4. Click Add contractor.

Then, you need to start tracking their payments for 1099. Follow the steps below.

1. Go to Expenses and select Vendors.
2. Select the vendor you want to track.
3. Click Edit.
4. Select Track payments for 1099 by placing a checkmark.

Finally, I'd suggest turning on the Multicurrency settings to record transactions in foreign currencies.

Additionally, you'll want to make sure all your information is correct. Let me add an article that will help you prepare and e-file your 1099s: Prepare and file Federal 1099s.

Get back to me if you need further assistance. Have a great day.

Yes but what if the contractor is based overseas. In that case they don't fill out a W9. So then what should we do? 

Thanks for joining in this thread, CoachKeegs.

Yes, you're correct. If your contractor is a non-U.S. person, there's no need to send 1099 forms at all. You'll have to get a W-8BEN form instead. Then, the contractor has to sign the form to justify that he or she is a non-U.S. citizen.

Moreover, you can leave the identification number box blank if your contractor can't provide his or her SSN nor TIN when the time of filling comes. But still submit the report to the IRS. They'll send a notice that the number is missing. This notice must be sent along with a backup withholding notice and W-9 form to the subcontractor.

Also, I recommend getting in touch with the IRS to make sure that you will be filing the correct form.

Additionally, I've included an article that'll guide you in ensuring your compliance with state payroll tax regulations: Payroll Tax Compliance.

For more 1099 questions, let us know. We're always here to answer them for you.

This is not helpful. They don't have an EIN or SSN because they're international. That's the whole point of the question. They can't be set up like a normal contractor.

And if I try to pay them through bill pay, it says "looks like you're trying to pay a contractor" and won't let me go any further.  Very frustrating. Is there any way to pay an international contractor through QBO???

Yes, there is, @vhearne84. I’m here to help so you can process a payment for this contractor in QuickBooks.

In QuickBooks Online (QBO), you can create an expense or a check to pay your international contractor. You can follow the steps outlined below:

1. Select the + New button.
2. Under Vendors, click Expense or Check.
3. Enter the necessary information.
4. Select Save and close.

Since they don’t have an EIN or SSN, you can add the said contractor as a vendor in QBO. This way, you can track all transactions associated with them. Also, make sure to get the W-8BEN form as mentioned by my peer above to justify that they're a non-US citizen.

Here’s a reference you can use to make vendor payments easy in QBO: Add a vendor bank account. It has complete instructions and extra information to make the payment process seamless.

Don’t hesitate to let me know if you need further assistance with managing your contractors. I’m always here to help.

@vhearne84 

Utilize this free app to pay your international vendors in their local currencies and integrate it with your QBO.

https://veem.grsm.io/veems

You may compare it to a paid app.

https://billcom.grsm.io/quickbooks

Can you still pay them with direct deposit that way?

Hi all,

Like to know if any one can help out this foreign contractor directly payment question? 

Guess the answer is no, as far as I work with your bank, the international transfer is very restricted by code verified.

Also like to confirm with the Form W-8BEN issue, our tax preparer said our US company just keep it don't have to send out to IRS. Can any of you clarify this?

Thanks a lot.

Kate

Hello there!

You can send international payments in QuickBooks Online. Let me assist you with your foreign contractor.

One of our partners is Online Bill Pay, a third-party provider for sending payments to your vendors. With this, you can wire the payments to foreign vendors. Please check these articles on how to sign up and use their service:

• What is Online Bill Pay?

• Pay bills in Online Bill Pay

• Send international payments using Bill Pay for QuickBooks Online

With regard to Form W-8BEN, your tax preparer is correct. You should get a form W-8BEN signed by the foreign contractor to certify that he or she is not a US resident. This form is not filed with the IRS and it is kept on file with the US payor for audits.

You'll want to check this link: Run reports in QuickBooks Online. This will show you the steps on how to run basic reports, memorize, and customize them.

I'll be here if you have additional concerns. Take care!