Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

As an American citizen, I am about to start consulting for

Customer Question
a company located in Switzerland...
As an American citizen, I am about to start consulting for a company located in Switzerland. Sometimes, I would need to travel there and conduct meetings but for 90% of the time - I would live and consult out of NYC.

Question: How should the contract be constructed between my employer and I. Will my employer pay taxes? In US or Switzerland?

I need help constructing such contract, can someone help?
Submitted: 6 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
1/2/2012
Tax Professional: L Dietz CPA, Accountant replied 6 years ago
L Dietz CPA
L Dietz CPA, Accountant
Category: Tax
Satisfied Customers: 31
Experience: Tax accountant with 27 years experience.
Verified

L Dietz :

Hello and welcome to Just Answer. I have 20 plus years experience in all areas of US taxation including multi-state and international issues.

L Dietz :

Are you consulting as an employee for a US company, or will you be consulting directly with the Switzerland company as an individual?

JACUSTOMER-162bp4ie- :

Hi, thank you for your time. I would consult with a Switzerland company as an individual

JACUSTOMER-162bp4ie- :

kind of like freelancer where I would bill them with a invoice for my service

L Dietz :

Will this company be your only employer, or do you have other consulting clients?

JACUSTOMER-162bp4ie- :

This will be the only employer out of Switzerland, but I might have another consulting job in US as well

L Dietz :

Whether you are an employee or an independent contractor (freelancer) is a factual question, so that is why I asked. If your intent is to be an independent contractor and self-employed, it helps to make your case if you have more than one client. Other factors include how much control the employer has over your activity. For a detailed explanation of the 20 factors the IRS considers in determining employee or independent contractor status, you can download Form SS-8 and its instructions from www.irs.gov. The tax court did rule in May 2010 that a US contractor to a Great Britain was an employee, and so disallowed the taxpayer's Schedule C deductions and retirement plan contributions as a result. So you do want to read what you can on this topic.

L Dietz :

You may also find IRS Publications 54, 593 and 901 helpful. They also can be downloaded from http://www.irs.gov/publications/index.html

L Dietz :

You will also want to review the U.S.-Switzerland tax treaty http://www.irs.gov/businesses/international/article/0,,id=169682,00.html

L Dietz :

Okay, that was for background information.

JACUSTOMER-162bp4ie- :

Ok I see, thank you for the details. I will certainly read all of the publications and see what I can find. Does my empoyer needs to pay taxes for me as well? I also was hoping to receive a legal letter (out of US)for my employer so they understand the contract. How would I be able to get that. his is my first time using this program

L Dietz :

Assuming the Switzerland company has no U.S. source income, you may well be considered an independent contractor rather than an employee. If the Switzerland company does have U.S. source income, and you will essentially be their US representative, you will probably be considered their employee--depending upon all the facts as mentioned above.

JACUSTOMER-162bp4ie- :

ok, i understand - that makes sense. They dont have US source of income.

L Dietz :

Just Answer is for general information only, and this is not a resource for legal services or legal contracts. The background information above will give you some ideas of what to include in the contract, and give you a starting point for consulting with an attorney for drafting the agreement with the Switzerland company, to be sure you include points regarding employment status.

JACUSTOMER-162bp4ie- :

ok thank you. I appreciate your help. does your company provides services, such as, drafting the agreement?

L Dietz :

As an independent contractor, you are required to make estimated tax payments to the IRS, using Form 1040-ES (also available fromw www.irs.gov; New York state also has estimated tax payment requirements, and their forms can be downloaded from the New York Dept. of Revenue website. . You may also be required to pay taxes to Switzerland, as you will have Switzerland source income.

L Dietz :

No, I am a CPA, not an attorney, and as a Just Answer expert, I would not be allowed to provide such services directly to you anyway.

L Dietz :

Do you have any further questions at this time?

JACUSTOMER-162bp4ie- :

ok i understand, thank you for your help. i appreciate it very much

L Dietz :

You are very welcome.

Ask Your Own Tax Question
Ask L Dietz CPA Your Own Question
L Dietz CPA
L Dietz CPA
L Dietz CPA, Accountant
Category: Tax
Satisfied Customers: 31
31 Satisfied Customers
Experience: Tax accountant with 27 years experience.

L Dietz CPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
What are the forms for reporting Rental Income to the IRS on
What are the forms for reporting Rental Income to the IRS on foreign properties - we collect each month? Is this filed separately from our personal returns?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Under the new Tax Cuts and Jobs Act, does a Schedule C sole
Under the new Tax Cuts and Jobs Act, does a Schedule C sole proprietor qualify for the 20% deduction of qualified business income or is this only available to S Corp shareholders & LLC's?… read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am scared to death, I have been an independent contractor
I am scared to death, I have been an independent contractor for the last 6 years and have not filed any tax returns. I made approx. 45k for each of the first 5 years and approx. 85k this past year. I … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
In an independent contractor in Hawaii. There is a 4% excise
In an independent contractor in Hawaii. There is a 4% excise tax for independent contractors. I'm a tennis pro working for a resort. The resort pays me 70% of my lesson. For instance, a lesson is $100… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Under the new tax plan, can a Schedule C proprietor still
Under the new tax plan, can a Schedule C proprietor still deduct her health insurance premiums on page 1 of Form 1040 & are there any medical expenses she can still deduct on Schedule A (if they excee… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
On a schedule c who do you put as the proprietor if it is a
on a schedule c who do you put as the proprietor if it is a newspaper route and you are given a 1099-misc … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
82 satisfied customers
I am a physician working as an independent contractor for a
I am a physician working as an independent contractor for a telemedicine company. all of my income is form 1099. Can I incorporate in such a way to qualify for the (possible) pass-through tax changes?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I hired an independent contractor to help me with a job. I
I hired an independent contractor to help me with a job. I paid him in full. Realizing he doesn't earn much, I don't want to send him a 1099, but instead pay the tax myself. I will receive a1099 for t… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
On october 30th I mailed form dt individual to the IRS in
on october 30th I mailed form dt individual to the IRS in Connecticut Certified mail showed it had been delivered on Nov 2 I have heard nothing … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Dose mean can not deduct state income taxes only or dose it
dose mean can not deduct state income taxes only or dose it includes property taxes too … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
As an independent contractor working overseas, I want to
As an independent contractor working overseas, I want to wire funds to the US savings account of my brother. What should I be aware of in taxes,or other expenses. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
Can an independent contractor/ 1099 worker's wages be
Can an independent contractor/ 1099 worker's wages be garnished in Texas for federal student loan debt?… read more
abci168
abci168
Principal
27 satisfied customers
Small schedule c business donates fully depreciated
small schedule c business donates fully depreciated furniture to charity. They've been told that the FMV is $1,000. What is the deduction for contributed property? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am working as an independent contractor for a university
I am working as an independent contractor for a university and have an LLC with C taxation election. The University refused to accept the W9 listing the LLC and informed me that I must complete the W9… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
As an independent contractor (1099) should I form an LLC? Do
As an independent contractor (1099) should I form an LLC? Do I need to? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,083 satisfied customers
A taxpayer, Form 1040 Schedule C, is on the cash basis. The
A taxpayer, Form 1040 Schedule C, is on the cash basis. The average revenue for the last 5 years is $5,100,000. There is no inventory. The NAICS is 423600Can he remain on the cash basis?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x