Have a Tax Question? Ask a Tax Expert
Hello and thank you for using Just Answer,There is no SS or any withholding for US purposes on wages paid to a nonresident, non US person even if working for a US company.
If your employee is working in the UK and you have a set place of business in the UK then your company could be seen as as doing business in the UK but as long as your company does not have a set physical place, no.There are some services that are VAT related.
You will not have to pay UK withholding.
You are most welcome
are you sure about uk social security? there are agreements in place
do you see any risk of being challenged on something by irs given that most of the profit will go the employee overseas with no witholding?
No, I do not see an IRS problem. You will need to have the W8 BEN form completed and kept for the employee.You would have to ask the specific UK tax question to a UK tax expert. The US side for you is clear and this is the US tax category for Just Answer.
OK, last question. Is there a problem if the employee comes to the US on tourist trips etc? Are there any restrictions on his presence in the US (given that no-us duties arrangement)? Do I have to appeal to double tax treaty?
The W8 BEN is what the UK person will complete for you and that deals with the double taxation. On that they will claim the treaty provision of not having US sourced income (they are in the UK not the US).Their tourist trip to the US would not have an impact on their tax as long as they did not work in the US.
Your positive rating is always thanks enough.