# How do I work for a US based company?



## CHexpat (Mar 13, 2016)

I am NOT a US Person and I would like to work IN Switzerland for a US company.
My services will be strictly performed in Switzerland, so there is no US source income, however the company issueing the pay is in the US.

Do I need to fill out any witholding forms?

Thanks much, I have studied this issue for a long time and it is very confusing.
:confused2:


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## Bevdeforges (Nov 16, 2007)

Unless the US company has a presence in Switzerland and can pay you through their Swiss payroll (i.e. paying whatever payroll and other employee taxes there are in Switzerland), your best bet would be to work as a "contractor" or freelance operator, simply billing them for your services as performed. You would then be responsible for paying whatever social insurances and taxes are required in Switzerland. It may or may not be worthwhile to set yourself up as some sort of business entity in Switzerland (particularly if you want to separate your personal finances and tax situation from those of your employment situation). But that part is up to you, and what regulations may exist in Switzerland for those sorts of things.

Just be aware that the US company would pay nothing toward your taxes - and in practice, you would want to ask for a somewhat higher rate of pay to cover your expenses and taxes/charges - things that would normally be paid for by an employer.
Cheers,
Bev


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## CHexpat (Mar 13, 2016)

*Thanks Bev is a form required?*



Bevdeforges said:


> your best bet would be to work as a "contractor" or freelance operator, simply billing them for your services as performed. You would then be responsible for paying whatever social insurances and taxes are required in Switzerland. It may or may not be worthwhile to set yourself up as some sort of business entity in Switzerland (particularly if you want to separate your personal finances and tax situation from those of your employment situation). But that part is up to you, and what regulations may exist in Switzerland for those sorts of things.
> 
> Cheers,
> Bev


Thanks Bev
Would I have to fill out a 8233 or 1099 form to work as a contractor?


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## Bevdeforges (Nov 16, 2007)

CHexpat said:


> Thanks Bev
> Would I have to fill out a 8233 or 1099 form to work as a contractor?


You don't fill out any 1099 form - normally those would be sent to you (possibly) by a US "client" or customer. You only need a form 8233 if you are hired as an employee who would normally be subject to withholding. If you go the contractor route, you're not an employee - and your billings are never subject to US taxation because you're not a "US taxpayer."

In essence, you're treated like a vendor. The US company is buying your services. Period. You send them a bill, and they pay it. The taxes and reporting are all on your shoulders and should be done according to Swiss law.
Cheers,
Bev


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## CHexpat (Mar 13, 2016)

*Much thanks Bev*



Bevdeforges said:


> You don't fill out any 1099 form - normally those would be sent to you (possibly) by a US "client" or customer. You only need a form 8233 if you are hired as an employee who would normally be subject to withholding. If you go the contractor route, you're not an employee - and your billings are never subject to US taxation because you're not a "US taxpayer."
> 
> In essence, you're treated like a vendor. The US company is buying your services. Period. You send them a bill, and they pay it. The taxes and reporting are all on your shoulders and should be done according to Swiss law.
> Cheers,
> Bev


Bev

The Tax Treaty is what was giving me the confusion. 
There are two classes

1 Dependent Personal Services
This is a employee.

2 Independent Personal Services
This is a Independent Contractor, non-employee, no office available in the US.

The form 8233 is entitled "Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual ,
but it is for Services “IN” the US. And therefore I think you are correct. I only invoice for my Swiss sourced services and no 8233 required.

Thanks very much for your help.


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