Ok, Im not trying to break the law here, so don't accuse me. Basically I live in a country where I dont get taxed on earnings. That's once I do all the work on the site myself. However, if I hire US based writers to work for me, I would have to pay some form of tax to the US government. Is there anyway to hire writers but not have to pay taxes on their behalf, maybe with some fancy job title like "contributor" etc. Right now Im trying to save as much since we get a decent number of hits that cannot be handled by a shared server but ad revenue is still slowish on some days. Any tips to save on taxes, if not... then I dont have a problem paying.. I dont want to make a big issue since I want to make this site my main source of income one day.
Why do you think you have to pay taxes to the US government? The person you pay to write articles is an independent contractor and it is their responsibility to pay income tax, not yours. If you hire them as employees, with an hourly wage, then it might be a different story.
Some companies hire people as independent contractors. They don't take any taxes out or pay any kind of insurance. They just get strait pay, and it is up to the individual to pay their taxes on their earnings at the end of the year. Here in the u.s. they usually make them fill out a form (I forget which one right off hand). The company then reports the earnings to the u.s. government, but the individual is responsible for paying them. Some companies provide a year end statement and form for the individuals and others do not. Since you reside in another country I don't know for certain how that would work in your situation. But I do see a lot of people working online as independent contractor's.
Sweet. Contracting seems to be the solution. I seriously doubt I could get anyone committed to working for me permanently anyway.