International Remote Hiring
This cluster focuses on the legal, tax, and employment challenges of hiring or working remotely across international borders, especially for US companies dealing with foreign workers as contractors versus employees. Discussions highlight barriers like compliance requirements, company policies limiting hires to specific countries, and services that facilitate global employment.
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There are a bunch of companies out there that provide this as a service - remote employment. They setup a company in each local country and handle all the tax and legal implications.
Working from a separate country isn't usually allowed based on the labor laws of that country, since you are still paying your taxes to your home country while using the infrastructure of another. You can certainly do it, but your company may not want to know you are doing it.
Your questions are very US-centric. What if the company does not even have presence in your country?I understood this as "you do work, we pay you, each of us handles our legal concerns in our respective countries".
Most US companies will hire remote "inside the USA" but not outside the USA due to potential foreign tax and legal liabilities. While the USA might be good for the reasons you listed, hiring remote full-time employees can be a legal minefield. If every employee is a contractor then that introduces its own legal issues in the USA.
1. I'm not a lawyer.2. If you want to hire someone abroad (outside of the business' country) then contractor.3. If you hire enough contractors, you may be forced to set up an entity or use a PEO. Local governments see that as skirting employment law.(I work at an all-remote company that is pretty transparent, and people lambast us all the time because they are upset we don't hire in $a_country_they_think_we_should and it's almost always "tax and labor law is com
Don't forget tax domains. Most remote companies in the US want to hire only in the US, not just anywhere in the world, due to needing to set up taxes in every single country their employee might be hired from.
How does this work for US companies working for remote workers who can be from the US or EU?
What do you mean they are the same? Hiring an immigrant who is legally authorized to work in the country is different than figuring out the target country's tax laws. It's the same reason American companies tend to disallow remote work from places they don't have a physical presence.
Just double-checked with our hiring manager, and I was wrong.... U.S. citizens living in other countries who want to work remotely would not be okay due to different laws, tax complexities, etc.
Many companies will not hire outside of certain countries i.e. US, UK....you may need to setup a corporate entity i.e. a Delaware LLC and work through a contract.