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How do companies handle tax/payment for remote workers?
Just wondering when one is working remotely and say the parent company is in United States, how does the company handle tax/payment for remote workers ? I assume payment is wired but what about tax ? Parent company does not have any branch in the country remote worker is living.
- jamescrowley 11y agoI imagine in many cases this would be on a freelance/contract basis and in that case it would generally be the remote worker who is responsible for paying the appropriate taxes in their country
- brudgers 11y agoIn the US, the company only has to withhold income for statutory employees. If this presents problems, then the work is usually let by contract.
- tvm 11y agoI'd say that if it's regular contract, you pay the tax in the country where the company resides (+ social / health tax). Freelancing is different and the pay is taxed in the country where you reside.
- seekingcharlie 11y agoRemote workers are usually on a contract and pay their own tax in their country. If the company wants them to be a full employee, they have to pay tax/health based on the law of where the remote workers lives.