Contractor Payment Statements for Foreign Workers

A proper record for every international payment

An international transfer often arrives with little more than a reference line. A contractor payment statement turns it into a clear record: one page per payment showing who paid whom, for which service period, how much, and the running total for the year.

Choose the Contractor Statement template, one of our eight, and you get a document built for a working relationship without payroll. Your contractor can match it to their invoices, and you keep an orderly file of what you paid and when.

• Your business name and address as the payer
• The contractor's name and address, including the country
• Services with quantities and rates, or a flat amount
• The service period, pay date and an invoice or reference number
• Any deductions or reimbursed expenses
• Gross payment, net payment and the total paid year to date

Built for cross-border work

Contractor statements accept addresses outside the United States, so the statement shows where your contractor actually is. Statements are in English and amounts are in U.S. dollars, so enter the dollar figures from your payment records.

A statement doesn't need a U.S. taxpayer ID. If your contractor doesn't have one, choose None and no number prints. If they do have an SSN, ITIN or EIN, choose that type and only the last four digits appear, for example ITIN XXX-XX-5678.

Tax paperwork: the general picture

U.S. payers usually collect Form W-9 from payees who are U.S. persons. Foreign individuals generally give a U.S. payer Form W-8BEN instead, when the payer asks for it, and businesses generally use Form W-8BEN-E. The contractor gives the form to you, and it is not sent to the IRS.

Which forms apply, and whether anything must be withheld or reported, depends on the facts, including where the work is performed. A tax professional can confirm what applies to your payments. A contractor statement is a payment record; it isn't a tax form and doesn't replace any IRS filing.

Paying contractors in the U.S. too?

The same Contractor Statement works for contractors in the United States, and at year end you can add 1099-NEC recipient copies to the same checkout. If a contractor's W-9 lists an ITIN, see 1099-NEC and 1099-MISC with an ITIN. Our W-2 vs. 1099 guide explains how employees and contractors differ, and the 1099-NEC generator guide covers thresholds and deadlines.