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Old 07-24-2013, 12:14 PM
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1099 and U.S. Employee living in Canada

Does my company need to file a 1099 for one of our part-time employees that is a U.S. citizen, but residing in Canada at this time? I was told by our payroll officer that we needed to collect a W-9 for him. Where is this information in the IRS regulations if this is needed? Thank you!



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Old 07-26-2013, 12:06 AM
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Originally Posted by Dabbadoo View Post


#1oes my company need to file a 1099 for one of our part-time employees that is a U.S. citizen, but residing in Canada at this time?



#2:I was told by our payroll officer that we needed to collect a W-9 for him. Where is this information in the IRS regulations if this is needed? Thank you!
#1:As a non US company, you do not issue a 1099MISC to your EE that is a US citizen; A 1099 is normally issued to individuals living in the U.S. and who are also citizens of the US. Any person making more than $600 per year is issued a 1099-MISC for income earned in the U.S.. However, foreign corporations are not issued this document. They are not subject to this filing since they are foreign entities. A 1099-MISC is a type of tax form. It is used to report miscellaneous income, such as income earned as a non-employee, as well as fees, commissions, rents, or royalties paid during the last tax year



#2: As mentioned above. A Form W-9 is a document that is issued by the US dept. of the Treasury's IRS and is used when a person or company needs to request a Taxpayer Identification Number , claims for exemption and specific certifications from a person, company, trust or estate in the U.S.
i guess you can talk to an intl tax representative at the IRS for more info in detail.



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Old 07-26-2013, 07:28 AM
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RE: 1099 and U.S. Employee living in Canada

Thank you for your response. I can see I wasn't detailed enough with my question! We are a U.S. company and the employee is a U.S. citizen currently living in Canada. We are an online educational institution and he is a part-time instructor.



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Old 07-26-2013, 09:37 AM
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Originally Posted by Dabbadoo View Post
I can see I wasn't detailed enough with my question! We are a U.S. company and the employee is a U.S. citizen currently living in Canada. We are an online educational institution and he is a part-time instructor.
Sorry for my misunderstanding;the EE, a contractor, is a US citizen but lives in Canada, then Yes, you will file 1099-misc. He must report this on his US tax return and pay SE tax at 13.3% for 2012/ 15.3% for 2013; you must issue him a 1099-Misc.if he didn't give you a completed W-9, you were to withhold 28% of each payment for taxes. The Red Copy A is filed with the IRS. It is due February 28, 2014. You must submit a Red Copy A for every 1099 you issue. You are also required to fill out a form 1096 (also red) to submit with all the Red Copies A to the IRS. The 1096 is a summary form that shows the total of all the 1099s.



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