How will my being a US citizen and being paid by an overseas company affect my taxes?
Full Question:
A Spanish company hires me in the USA (I am a USA citizen) and tells me that all taxes etc are my responsibility. I file 2007 taxes as independent contractor. They control all facets of my work and want me only working for them. In 2007 they also incorporate in the States and reneged on promise that I would become full time employee in 2008 of USA Inc company. They maintain me in 2008 as before under salary directly paid to bank account from Spain. Can their USA Corp. claim I never worked for them in order to circumvent tax laws and issues. USA Inc. on acts for receivables and invoices. 1. Can Spain company hire USA employee and knowing violate tenants of independent contractor status. Are they responsible to withhold. 2. Now Inc in USA ; can Spain company still claim I only work for Spain and not USA company. 3. Although I am full time employee of Spain they treated me on their books as vendor also skirting their Spain tax issues.
04/27/2009 |
Category: Taxes |
State: ALL |
#16194
Answer:
I am prohibited from giving a legal opinion. The determination of whether someone is an employee of a particular company is a determination for the court based on all the facts and circumstances in each case. The more direction and control that an employer has over the individual's manner of work, the more likely it is that the individual will be considered an employee.
Some of the facts used to determine the type of relationship include:
-Written contracts describing the relationship the of business or hold himself out to perform similar services
-Whether or not the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay.
-The extent to which services performed by worker are a key aspect of the regular business
-The permanency of the relationship
If you think that you were, or are, an employee and you would like the IRS to issue a determination, you may submit Form SS-8 (PDF), Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
