Ugh, I was under the impression it was only applicable for people you paid more than $600 to. Well, that's a pain in the ass. How likely is it that the foreign contractor gets their taxes back? Is it possible to streamline it for them in any way?
How come we don't hear much about enforcement in this area? Isn't every time you hire someone from O-desk or E-lance you have to do this?
BTW, thanks for your time, its really awesome of you.
Yea, I'm not surprise that you'd logically figure the 600 dollar 1099 de minimis rule would roll over to the 1042S. But, it sucks lol.
Realistically, enforcement is questionable. I know that I've seen them but usually I dealt with large companies so I cant say how common it is for small businesses.
Odesk and elance definitely have this problem and they're required to file them but realistically I dont know how aware they are of these issues or how they're handling them. Can't say definitively =X. But, legally they should be doing all of this as well. =)
oDesk handles all financial transactions, sending secure payments to contractors across the globe. Just use our Work Diary to review hours, and we’ll take care of the rest!
I think you pay oDesk, and they pay the freelancer, so you're just paying a vendor and don't have to deal with taxes.
Comments
Ugh, I was under the impression it was only applicable for people you paid more than $600 to. Well, that's a pain in the ass. How likely is it that the foreign contractor gets their taxes back? Is it possible to streamline it for them in any way? How come we don't hear much about enforcement in this area? Isn't every time you hire someone from O-desk or E-lance you have to do this? BTW, thanks for your time, its really awesome of you.
Yea, I'm not surprise that you'd logically figure the 600 dollar 1099 de minimis rule would roll over to the 1042S. But, it sucks lol.
Realistically, enforcement is questionable. I know that I've seen them but usually I dealt with large companies so I cant say how common it is for small businesses.
Odesk and elance definitely have this problem and they're required to file them but realistically I dont know how aware they are of these issues or how they're handling them. Can't say definitively =X. But, legally they should be doing all of this as well. =)
Thanks for taking the time to do this, its been a great resource.
From https://odesk.com/info/howitworks/client/:
oDesk handles all financial transactions, sending secure payments to contractors across the globe. Just use our Work Diary to review hours, and we’ll take care of the rest!
I think you pay oDesk, and they pay the freelancer, so you're just paying a vendor and don't have to deal with taxes.
Its true, if you're using oDesk you dont need to handle the taxes. Because its their responsibility.
I thought he was asking if oDesk properly handles taking care of the 1042s on their side.