tax and hiring oversea programmers

Yes and, in case of an audit, you will need documentation. I suggest a written contract and invoices from the payee which include the payee's address and phone number. If the total amount is large enough, an auditor may want to contact the recipient.

Sending cash outside of the United States is frowned upon for several reasons, e.g., the ficitious vendor scam, money laundering, the inability to track the payment to the recipient, and the ability of the receipent to exchange the US dollars on the Black Market.

I suggest you prepare a very good explanation for why the recipient needed to be paid in cash other by a cash equivalent such as an American Express Cheque.

Dick

I paid by personal check, is it OK?

Thanks,

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Moderator: It's perfect and it relieves any concerns I would have for you. Never forget the primary job qualification for an auditor is to prove your parents were not married.