Expat Payroll

Forum|Forum|11 months ago
July 10, 2025
2 replies
12 views

I'm working with a client that has lived in Taiwan for the last 10 years and meets the bona fide residency test. He does IT work and has an Scorp registered in Wyoming. None of the larger payroll processing providers would take him on without designating a State. In my opinion, he shouldn't have to file anything with a State since he's not a resident of one. I plan to help him with payroll but want to make sure we're not missing anything.

Also, my understanding is that his W2 income from the Scorp will be considered foreign earned income for the foreign exclusion but not the income from the K1.

ProSeries Professional

Best answer by sjrcpa

He should go back to the payroll companies. This is not an unusual situation. US employer with foreign resident employee. I think they will all do it. He probably spoke to low level salespeople who don't know from this.

sjrcpa

Level 15

"his W2 income from the Scorp will be considered foreign earned income for the foreign exclusion but not the income from the K1."

Correct.

The more I know the more I don’t know.

sjrcpaAnswer

Level 15

He should go back to the payroll companies. This is not an unusual situation. US employer with foreign resident employee. I think they will all do it. He probably spoke to low level salespeople who don't know from this.

The more I know the more I don’t know.

A

Avs19Author

Level 6

That's what I'm thinking.

Thanks for the reply!

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