US-based company A hires worker B, who is a citizen and resident of country C and does not travel to the US for work. Will the US government collect any taxes (income, Social Security, Medicare, etc) on B?



The company is hiring and paying the worker in country C. They will need to withhold and remit taxes, insurance etc. in accordance with local law. They may also be required to pay in local currency - some jurisdictions require employees to be paid in cash which means local money, not US dollars.

By the way, this is the same if B were a US citizen living in C. The only difference is that B would be required to submit tax returns (and possibly pay tax) for the US as well as C.

  • And usually not even then. Most foreign earned income of U.S. citizens is exempt from U.S. taxation.
    – ohwilleke
    Oct 6 at 2:09
  • @ohwilleke if I remember correctly, the foreign earned income exclusion doesn't relieve the US citizen from the requirement to file a tax return even if the tax liability is zero as a result of the exclusion.
    – phoog
    Oct 6 at 12:21
  • @phoog Incorrect. Since it is an exclusion, as opposed to a foreign tax credit (which is how other foreign income is treated under U.S. law) foreign earned income within the exclusion doesn't even have to be reported.
    – ohwilleke
    Oct 6 at 19:51

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