There are no tax implications for you as the hiring company. VPM Solutions, together with Stripe (our payment processor), manages all payment and tax-related responsibilities.
How Tax Handling Works:For U.S.-based Virtual Team Members
- VPM Solutions collects necessary tax information (such as full legal name and U.S. address) directly from the Remote Team Member during onboarding.
- Stripe uses this information to determine whether a 1099 should be issued, based on IRS thresholds (currently $600 or more in annual payments).
- If required, Stripe will issue a 1099 by January 31st of the following year.
- As the client, you are not responsible for issuing any tax forms or performing any tax reporting for U.S.-based Remote Team Members.
For International Remote Team Members (non-U.S.)
- VPM Solutions collects the information necessary to fulfill W-8 BEN requirements (such as name, address, and country of residence).
- However, we do not ask the Virtual Team Member to complete or upload the official W-8 BEN form.
- This information is used solely to verify non-U.S. tax residency and to help ensure U.S. tax compliance.
- Each international Remote Team Member is responsible for managing and reporting their income in their own country.
Summary:
As the hiring company, you have no tax withholding or reporting responsibilities for Remote Team Members hired through VPM Solutions. We ensure the correct data is collected, and Stripe handles applicable tax documentation directly with the Virtual Team Member. Each Remote Team Member is responsible for managing their own taxes in accordance with local regulations.
As the hiring company, you have no tax withholding or reporting responsibilities for Remote Team Members hired through VPM Solutions. We ensure the correct data is collected, and Stripe handles applicable tax documentation directly with the Virtual Team Member. Each Remote Team Member is responsible for managing their own taxes in accordance with local regulations.