Taxes and the law, in plain words
This is not tax advice; ask your accountant. Here is the shape of it. Your virtual assistant is an independent contractor in the Philippines, not your employee. You do not withhold US taxes, and you do not send them a 1099. Most US businesses keep a signed W-8BEN on file for each foreign contractor and record the payments as an ordinary business expense.
On their side, they handle their own Philippine taxes and social contributions. Your hiring agreement says so in one line. Keep it that way: set the hours and the pay, not the way they live.
Do this today: send your accountant one line — "I am hiring an independent contractor in the Philippines; what do you need from me?"
