Yes, employers can file a W-2 form for payments that they make to a foreign employee working remotely for their business. You legally must withhold taxes and report it for all W-2 employees. Apply that requirement to remote workers and withhold taxes on an employee’s behalf based on the employee’s country of residence. Make sure that you establish your workers’ classifications when you hire them. Both parties may find it less complicated if a remote foreign employee is an independent contractor. The workers can set their own hours in their timezone and the business will not need to withhold taxes.
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