Legal Question in Employment Law in Massachusetts

Re: Paying International Employees

Your answer depends on many things. In what country was the director hired? Where did the employment contract if any originate and where was it executed? Under what laws does your non-profit operate, i.e. - what state of organization, current non-taxable / taxable status according to IRS? What jurisdiction's laws govern your employment contract with this Bolivian Director, originated or interpreted under (assuming there is such a contract of employment)? How is this status relevant to your employee/director? Is he/she in a management position with any ownership in corporate property of any kind? What percentage? How much gross income to the company annually? How many years in business? How many employees? How does your non-profit handle paying other employees? Is he/she an employee or INDEPENDENT CONTRACTOR? How can you prove this to satisfy the authorities who decide tax liability questions? Do you know the significant penalties for making mistakes in such tax areas? WHAT DOES YOUR CERTIFIED PUBLIC ACCOUNTANT SAY? This is a tax question upon which the considered opinion of a C.P.A. well versed in non-profits is REQUIRED. You or a principle of the company will need to be able to answer all of the questions posed above (and further questions likely to be asked), and should have already retained an Accountant (C.P.A. - who knows international tax liability). At this point, there is not enough information to further attempt to intelligently answer your question. You need the help of other professionals, not just legal counsel. Lastly, I would consider this problem more at length, after being retained to do so, as long as you can correctly identify and provide original copies of necessary documents, contracts, income tax returns, and demonstrate that your non-profit has the fiscal responsibility necessary to pass legal and accounting "muster", etc, etc.