Help with a Foreign Employee

[Oh Baby!]

Company has a full time employee who is not a resident of the US and does not live in the US. Works remotely from his / her home country for a US Company. I've read IRS Pub 515 and the instructions to 1042-s. but it's still pretty confusing, so maybe someone here can help.

when the employee is hired, what forms do they complete? W4? W9? the employee does not have a social or a TIN?

I read in 515, that the company would be required to withhold a flat 30%. but that amount seems outrageous?

does the company withhold only federal income taxes or FICA too?

And how would the employee get the money back at year end if s/he does not have a social or TIM to file a return?

Any help with this would be greatly appreciated!

[jainen]

>>how would the employee get the money back at year end if s/he does not have a social or TIM to file a return?<<

She wouldn't. Obviously one has to file a return in order to get a refund. You say the withholding is outrageous, but the rest of your post suggests the main reason it is necessary.