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Taxes, Paypal and Outsourcing

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Can someone tell me the best way to pay the overseas outsourcer, if you are using Paypal? Also I plan to hire a VA from the Philipines, what considerations do I need to give to taxes (in USA and the Philipines)?
#outsourcing #paypal #taxes
  • Profile picture of the author Warrior Roy
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    If you go through oDesk for outsourcing, they handle the payments, and you can pay with Paypal. And you don't have to pay until you are happy with the job.

    If I pay for services, I deduct them from my taxes; but I have a CPA that prepares my taxes so I don't know any of the specifics.
    • Profile picture of the author authorfriendly
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      Guess I need to be more specific. I am hiring two VA's directly, individual contractors and so I need to know what if any forms I would need to fill out for their(the Phillipine's) government, comparable to the 1099's that are filled out in the USA.

      My other main question is just about Paypal. Should I try to get the VA's to bill me as a provider of services? I doubt if I should be using the family and friends transfer option, but just not sure what's best overall, easiest, cheapest, etc.

      Finally I need to know what to do when I file my taxes here.
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      • Profile picture of the author JOSourcing
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        Originally Posted by authorfriendly View Post

        Guess I need to be more specific. I am hiring two VA's directly, individual contractors and so I need to know what if any forms I would need to fill out for their(the Phillipine's) government, comparable to the 1099's that are filled out in the USA.

        My other main question is just about Paypal. Should I try to get the VA's to bill me as a provider of services? I doubt if I should be using the family and friends transfer option, but just not sure what's best overall, easiest, cheapest, etc.

        Finally I need to know what to do when I file my taxes here.
        This website can answer your questions better than anyone here, I'm sure: Paying Independent Contractors
  • Profile picture of the author JOSourcing
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    As an outsourcer, you don't pay any taxes for U.S. contractors. Paying taxes (here) is the contractor's responsibility. I have no idea what's required in the Philippines, so perhaps someone else can answer that part. The general assumption is no taxes, nowhere.
  • Profile picture of the author myeanne
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    Hi authorfriendly,

    We are a staff leasing company based in Manila, Philippines. All of our employees are in-house working for various clients and projects from time to time. We are in-charged at paying our staff's monthly salary, social security, taxes, benefits
    etc. You just pay a monthly flat rate, no hidden charges, and you can
    choose between contract or no contract service arrangement.

    I'll be more than happy to assist you.
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  • Profile picture of the author Istvan Horvath
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    Maybe some clarification is due...

    If you are in one country and the "worker" is in another country - you do NOT hire them, in terms of employer/employee relationship. They are just contractors. I guess this was the thing that confused you...

    While I am in Canada, you can NOT hire me as an employee, unless your business has a registered presence here in Canada; i.e. a business entity registered here.

    If you want me to perform some tasks for you - I can be a contractor for you: I am telling MY price and you accept it, if you want and you don't have to worry what kind of taxes I pay (or how much).
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