When we pay US contract labor, we generally send the "gross cash amount". The US contractor actually has to fill out a form upon commencement that says how their taxes & social insurance will be paid; at the end of the year they get a form from the businesses they did work for which shows total paid, and they use that to do their taxes.
Same thing for international contractors -- they just have to deal with their local jurisdiction's taxes, instead of the US IRS.
When we pay US contract labor, we generally send the "gross cash amount". The US contractor actually has to fill out a form upon commencement that says how their taxes & social insurance will be paid; at the end of the year they get a form from the businesses they did work for which shows total paid, and they use that to do their taxes.
Same thing for international contractors -- they just have to deal with their local jurisdiction's taxes, instead of the US IRS.