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ssantos21
March 4, 2025
Question

Inquiry on Paying Non-U.S. Contractors via QuickBooks

  • March 4, 2025
  • 1 reply
  • 0 views

Hi! I’m looking for guidance on the best way to pay a non-U.S. contractor through QuickBooks. We have remote workers based in Ghana, Egypt and Philippines, and we understand that QuickBooks Payroll does not support payments to international contractors.


From what I’ve gathered from different community forums:

- Add the contractor as a vendor or Contractor in QuickBooks.
- Use a third-party payment service (such as Melio, Veem or Wise) for international payments.
- Enable the multicurrency feature to manage transactions in different currencies
- Obtain a completed Form W-8BEN from the contractor for compliance.

 

Can you confirm if this is the best approach? Additionally, do you know any integrated third-party payment services that handle both currency conversion and year-end reporting for non-U.S. contractors?


Looking forward to your guidance.

1 reply

R
RoseJillB
March 4, 2025

Hi there, @ssantos21.

 

You're correct that QuickBooks Payroll only supports payments for US employees. I also agree that adding your remote employees as vendors in QuickBooks Online (QBO) is a good way to track the services they've provided to your company. To do this, you can follow these steps:

 

  1. Navigate to the Expenses menu and select Vendors.
  2. Click New Vendor.
  3. Enter the vendor or remote employees' information in the respective fields.
  4. Select Save.

 

Since they are located outside the United States (US), you're also right about enabling multicurrency to easily record foreign transactions without worrying about exchange rate conversions.

 

We cannot recommend a specific third-party application for international payments with QuickBooks. However, I suggest visiting the QuickBooks Apps Store or taking the following steps within your account to find a supported application that can integrate with QuickBooks:

 

  1. Log in to your QBO Company as an admin.
  2. Move your cursor to the Apps menu located in the left navigation pane.
  3. Select Find Apps. This will take you to the Apps window, where you can find applications that support QBO integration.
  4. Start searching for similar apps or, if you have a specific one in mind, locate it by typing the application's name in the search bar.

 

Then, follow the on-screen instructions to connect this app to your QBO. For further guidance with the integration, please reach out to third-party app support.

 

Regarding the form needed for contractor compliance, it's best to consult your accountant for guidance as well as alternative approaches to recording these transactions.

 

Moreover, see all payments you made to your vendors when you run the Expenses by Vendor Summary report in QuickBooks Online.

 

If you have more questions about managing your employees in QuickBooks, @ssantos21, feel free to reply to this thread. I'm just a post away to help you.

    S
    ssantos21Author
    March 4, 2025

    Hi RoseJillB,

     

    Thank you for your response. That really helps.

     

    In addition, do we need to ask them to provide a completed Form W-8BEN prior on paying them?

     

    Thanks again!

    G
    GebelAlainaM
    March 4, 2025

    Yes, @ssantos21. You can contact your client and suggest consulting a tax professional specializing in international tax law. This approach can help clarify whether they need to complete a W-8BEN-E form.

    If you don't have an accountant, you can visit our ProAdvisor page, and we can help you find one from there. They are trained accountants and bookkeepers manage financial complexities and offer practical business solutions.

    You can check out this article for additional resources with detailed information on tax regulations, filing requirements, and other essential policies related to handling the W-8BEN-E form:
     

    Furthermore, I've attached this article for future reference in case you need to view your past payroll tax payments and forms in QuickBooks: View your previously filed tax forms and payments.

    If you have any further questions or need more clarification on managing the W-8BEN form or other payroll forms in QuickBooks, please don't hesitate to post again in this thread. I'm here to help and ensure you have all the support you need.

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