Foreign Employees

It's correct, juckerhawaii. Let me explain the details to enlighten you on what to do so you can add the foreign employee to QuickBooks Online (QBO).

Since you plan to hire a non-US citizen and resident employee, they should fill out an I-9 form and provide a copy of their visa and a valid Social Security number. A visa will be required as this will be the basis for payroll tax exemption. If you need help understanding which payroll taxes your employee is exempt from, you can refer to the IRS Publication 515 or contact your state agencies for state tax exemptions.

It's also important to note that QuickBooks only supports individuals with a Social Security Number (SSN) due to IRS regulations. If the person has an Individual Taxpayer Identification Number (ITIN) instead of an SSN, they cannot be on the payroll. For more details about this, here's the link: Set up your employee who is not a U.S. citizen.

In such cases, you may consider tracking their payroll outside QuickBooks. You could also consult an accountant or a tax professional for further guidance in handling overseas employees.

Also, if you need to track their paychecks made outside QuickBooks, you can create a journal entry. This article has all the details: Manually enter payroll paychecks in QuickBooks Online.

If you require assistance with annual forms or other payroll-related tasks, you can check our guides on this reference: QuickBooks Online Payroll Taxes topic.

Feel free to reach out if you have more questions. We are here to guide you with your payroll or QuickBooks Online tasks.

@juckerhawaii 

Another option, you may consider to assign your international employee as the international contractor.