A client wants to hire a student from France as an intern. My research shows that as long as the student works less than 20 hours a week, no Social Security or Medicare taxes are to be withheld. Also, according to the treaty, the income is not taxable in the US as long as he makes $5,000 or less in a year. (the six-month work period will cut across two years so this requirement will be met.)
My questions, is what tax reporting is required? W-2? 1099-MISC? 1042-S? None of them appear to apply.
Any help would be greatly appreciated.
Gary