I am investigating the possibility of starting a new technology consulting firm and want to be able to hire workers from India currently in the US on H-1 visa or Green Card. While the company would be located in MN, the consultants would be able to work/live in any state in the US.

I want to make sure that when I set up the payroll system that I am collecting, any filing the appropriate taxes for these consultants. I read in other posts that some exceptions apply to paying SS and Medicare. What taxes should I anticipate that I will need to withhold, etc.?

Thanks in advance

rgi

AtlantaTaxExpert

RGI:

Alien workers under H-1 visas are taxed as resident aliens. They have the same tax liabilities as U.S. citizens, to include Social Security and Medicare taxes.

rgi

Thank you for the reply.

Is it possible for a resident alien to be self employed (i.e. can they be 1099'd vs. treated as a w-2 employee)? In that way, they would be paid a higher gross amount but no taxes withheld. However, they would pay the employer portion of the SS.

Thanks again.

AtlantaTaxExpert

RGI:

Yes, you can pay the H-1s as subcontractors using Form 1099-MISC.