[rgi]

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.