I have a client that is wanting to hire an independent contractor from Jamaica, but does not know the tax implications. This is what I do know:
----- "if a foreign contractor performs service in the US, certain conditions should be met to avoid tax obligations. Those conditions are:
- The nonresident alien performing labor services is present in the US for less than 90 days during the tax year
- The total pay does not exceed $3,000
- The pay is for labor or services performed for an office or place of business maintained in a foreign country
If any of the above conditions are not satisfied, a principal has to report and withhold income of a foreign independent contractor. However, withholding and income tax for a contractor can be avoided if the country of a contractor has a tax treaty with US."
I also know that the US and Jamaica do have a tax treaty, and the pay will exceed $3,000.
Does anyone have any words of wisdom on this matter?
