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You should treat your former employee as a contact worker and report her earnings on a 1099R since as you said you do not direct her daily activities
As for the $650 fee for a work permit, I can't find that $ amount in any of the information I have in my files or on the web
However, you may negotiate paying this for her (and include it in her 1099)
Are there payments that have to made to the Japanese gov't if she is working as a 1099 employee remotely?
Let me check the treaty first\
please give me a minute
No, there's nothing in the treaty, and frankly, I've never heard of the US paying another country to allow a US citizen to be self employed in another country
Generally, a US company pays to bring people from other countries (H1B) visas
not to allow someone to be self employed there
That's what I thought. If she was a W2 employee it might be a different matter as then you get into if our company is trying to establish a presence, etc.
Ok, great, you confirmed my suspicions! Thanks.
You're most welcome