What are the specific rules for taxing international employees?
International employees must follow the same rules and regulations as any other employee who works in Washington. The Washington State Department of Revenue is responsible for collecting taxes from employers, but there are a few key differences for international employees. First, international employees must pay the appropriate Social Security and Medicare taxes, commonly known as FICA or FUTA taxes. If the employee is from a foreign country and does not have a Social Security number, the employer may need to obtain an alternative form of identification from the employee to collect the necessary taxes. Second, international employees must fulfill all federal and state income tax withholding requirements. A withholding form must be completed for each employee, and the employer must withhold and pay the appropriate amount of taxes to the government. Third, employees who work in Washington for less than five consecutive calendar months, or for more than 183 days within a 12-month period, may be able to exclude some of their income from taxes. This is known as the “183-day rule,” which allows foreign employees to exclude a certain amount of their salary from being taxed. Finally, international employees must file a Washington State tax return if they earned more than a certain amount of income in a calendar year, regardless of how much time they spent in Washington. The employee should consult with a tax professional for assistance in understanding their specific tax obligations.
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