Hi,

I would like to know the tax withholding policy for an independent contractor who is a Canadian citizen and resident (residing solely in Canada) working for a US Firm, based in California. The contractor has only a Canadian citizenship and does not reside in the US at all.

Thank you

Your income is not subject to the U.S. taxes and it is not considered U.S. source income.

Only if you are present in the U.S. to work, then it is U.S. source income.