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Company B pays individual X on behalf of company A instead of B paying A then A paying X. What’s this called?

• posted by: Macca on 2016-06-01
• tagged: taxes
• score: 2

Company A is in Ireland. Company B is in America. Company A does work for Company B and receives regular payments from B. Company A has need to pay an individual X a per diem allowance while X is in America. Company B pays X directly (on behalf of A) and subtracts that amount from the regular payments to A.

What is this called so that I can investigate tax implications of it.

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