Paying overseas contractors

[mochibits]

Any US developers here who pay overseas contractors directly? Not using Elance, etc.

Just wondering what kind of tax details I should be worried about.

Do you just get invoiced? or set a contract then wire them money to their bank account?

[PyntailJason]

Slightly different answer to your question, but:
Pyntail's a US-based company with ~50 developers/designers/programmers in Pakistan. We sign contracts with all of our clients. Since we're a US based company, it's the same as dealing with anyone else here.

It may be different if you're trying to deal directly with a foreign company.

Originally Posted by mochibits

Any US developers here who pay overseas contractors directly? Not using Elance, etc.

Just wondering what kind of tax details I should be worried about.

Do you just get invoiced? or set a contract then wire them money to their bank account?

[mochibits]

Originally Posted by PyntailJason

Slightly different answer to your question, but:
Pyntail's a US-based company with ~50 developers/designers/programmers in Pakistan. We sign contracts with all of our clients. Since we're a US based company, it's the same as dealing with anyone else here.

It may be different if you're trying to deal directly with a foreign company.

I just want to hire one contractor. How do you pay them?

[PyntailJason]

Cause they're part of our company, they just get paid from our payroll, it's not quite the same as trying to hire your own freelancer independently.

Originally Posted by mochibits

I just want to hire one contractor. How do you pay them?

[Speed]

Originally Posted by mochibits

I just want to hire one contractor. How do you pay them?

I'm hired with someone out of my country, and they just pay me either through PayPal or a direct bank wire transfer.

[HirenBhatt]

Originally Posted by mochibits

I just want to hire one contractor. How do you pay them?

You can pay them either via PayPal or Moneybookers.
The advantage of paying via Moneybookers over PayPal is that they have Escrow service via which you can deposit the sum decided prior to project start, and then release that sum after certain percentage of the project or a part of the project has been completed.
This way you'll keep getting quality part-work at regular intervals and your developer will keep getting small part-payments as per the work done/shown.

Hope this helps.

[mochibits]

Originally Posted by HirenBhatt

You can pay them either via PayPal or Moneybookers.
The advantage of paying via Moneybookers over PayPal is that they have Escrow service via which you can deposit the sum decided prior to project start, and then release that sum after certain percentage of the project or a part of the project has been completed.
This way you'll keep getting quality part-work at regular intervals and your developer will keep getting small part-payments as per the work done/shown.

Hope this helps.

Is there any specific tax informatoin that needs to be filed on my part for paying someone overseas this way?

[bignoggins]

Originally Posted by mochibits

Is there any specific tax informatoin that needs to be filed on my part for paying someone overseas this way?

It's just an expense, doesn't matter where the money is going.

[mochibits]

Originally Posted by bignoggins

It's just an expense, doesn't matter where the money is going.

Would the contractor be responsible for any US taxes? foreign taxes? both?