I'm an IT consultant. After watching my friends, co-workers and team slowly get replaced by India labor for years...it was finally my turn...and I too was replaced. Outsourcing has forced our rates down and has limited our opportunities and that's just the way it is. We're a global economy and those Indians are hardworking, dedicated people who are simply able to do the job for less than what McDonalds pays a dishwasher.
It redirected my one man consulting company to now use the same labor that replaced me. I have my first contract--which I won as a result of being able to underbid my US based competitors...and I have three Indians ready to start work.
Question is: How in the heck do I pay these guys? What currency do I use...I only have access to US Dollars.
They're not my employees...I consider them 1099s because they are doing all the work on their own time/schedule/resources.
I've searched all over the internet and the local accountants in my community don't handle this type of stuff. The Indians work in India, I'm in the US. The client is in the US. They don't have social security numbers, and because I'm not flying them here, I don't need to get them Visas.
If I can't figure this out, I do plan to go to the IRS directly but I have this feeling that they'll put me in their special "keep an eye on this dude file" if I go to them.