I am expanding my business and have posted a job ad for subcontracting work. I am receiving many responses from overseas workers and also from some there live here in the US but may not have full citizenship. I am wondering for tax purposes in writing off the expense of subcontract labor if anyone knows what is acceptable? (work permit, overseas, temporary visa)

Thank you in advance!
tmitchell

When you hire someone you must establish their eligibility to work in the U.S. You need to provide them with a form called an I9. On that form there will be a list of acceptable documents that the new hire may choose from. They must present you with one or two (depending on what the id is) forms of identification and within 3 days of hire you need to verify whether or not they are legally able to work in the U.S. You can download the form from here:

http://www.uscis.gov/files/article/EIB101.pdf

I thank you for your post but after some research this is not the correct form for hiring independent contractors as per their website

providing services for the employer as an independent contractor (i.e. carry on independent business, contract to do a piece of work according to their own means and methods and are subject to control only as to results for whom the employer does not set work hours or provide necessary tools to do the job, or whom the employer does not have authority to hire and fire); and
providing services for the employer, under a contract, subcontract, or exchange entered into after November 6, 1986. (In such cases, the contractor is the employer for I-9 purposes; for example, a temporary employment agency.)

I believe I need to have a 1099 form completed but I wonder about verifying documents from a distance if they are not in my state?

tmitchell

i meant a w9

So sorry. I read your post too quickly.
An I9 would not be used for a contractor.
Here is the link for 1099's and W9's:
http://www.irs.gov/businesses/small/article/0,,id=99184,00.html

While verifying elgibility of a contractor is not required, an employer cannot knowingly use the services of a contractor that is not legally authorized to work in the U.S.

It's akin to using workers provided by a staffing agency under the assumption that the agency is verifying eligiblity. However if the employer becomes aware that the worker is an illegal alien not authorized to work in the U.S., the employer is held responsible.

Bottom line....employers cannot employ or hire people that are not authorized to work in the U.S..

Thank you, your answer has proven to clarify what I was wondering.
tmitchell