I have been traveling overseas for many years. Last year I was able to hire someone in Costa Rica who was able to do some work for my office. I am thinking of using this person for more work. The person in a non u.s. citizen/resident and is working from his home in Costa Rica. I am worried about the deductibility of his payments, withholdings and the required forms for me to file . It worked so well for me last year that I am thinking of giving him much more work. My office has no income from Costa Rica.
I don't know if it is important but last year the person in Costa Rica did accounting work for me. I was able to fax and email receipts, vouchers and forms and I was able to work with him hand in hand by remote computer and voip phone. I ended up buying a high speed scanner to make things flow smoother. I used logmein.com and he was able to enter information directly into my computer here in the U.S.
Can anyone shed some light on this topic? Thanks in advance