1)Are people who work on a retainer basis considered employees? How is that different from being a contractor? What would they (retainer) report their income as, employee or self employed? 2)How do foreign corporations become qualified in providing investors with qualified dividends?  

Answer...

No... retainers are not regular employees of a company. Retainers can be classified as independent contractors who are highly skilled professionals and freelancers and are paid in an agreed rate whether it is in hourly, daily, weekly or monthly basis.

A retainer is not an employee. He is available to you for advise, professional work as may be required. Normally, a retainer is not engaged for daily duties.The only advantage in having a retainer is his/her availability to the firm engaging him. The terms of retainer ship is governed by the conditions agreed upon. No other benefits like gratuity, bonus etc are applicable. However, if the employer wants to extend any additional benefits, it is left to its discretion as spelt out in the terms.

A retainer is a special kind of contract, whereby you agree to be available or on-call for work in return for payment. Just like any other contract, by agreeing to a retainer you’re accepting all its terms and conditions. A company can’t impose a contract on you unilaterally, nor can it change the conditions of the retainer without your agreement.

Retainers only apply to contractors, not to employees. If you were previously an employee, your company can’t simply put you on retainer without first legally terminating your employment. In such cases you may be entitled to a redundancy payment, and it will be your own choice whether to then sign a retainer contract.

Employment on retainership basis" means obtaining services from a professional by paying a retainership fees.
They are different from regular employees as they are not on the payroll of the company. They are given a fixed monthly fees.

Question 2) How to foreign corporation become qualified in providing invester with qualified dividend.

Requirements for Qualified Dividends

Qualifying foreign companies

A foreign corporation qualifies for the special tax treatment if it meets one of the following three conditions: the company is incorporated in a U.S. possession, the corporation is eligible for the benefits of a comprehensive income tax treaty with the United States or the stock is readily tradable on an established securities market in the United States. A foreign corporation is not qualified if it is considered a passive foreign investment company.

Your foreign dividends may be qualified to be taxed at a special lower tax rate. ... When you receive dividends from a US corporation, your Form 1099 will specify whether they are qualified dividends or not. Qualified dividends are eligible for a much lower tax rate that of ordinary dividends.