5 ms·

We have a few people working as contractors internationally but it's a bit painful for both the US company and the international contractors. We're just startin

We have a few people working as contractors internationally but it's a bit painful for both the US company and the international contractors. We're just starting to try a new approach using Deel https://www.letsdeel.com/ https://www.letsdeel.com/ It's too early to give a full endorsement of them as we're just going through the process for the first couple of employees but it seems promising so far and simplifies things for both the US company (a 100+ employee 5 year old startup) and the employees who have a simpler tax situation typically under this arrangement.

necovek 5y ago
From what I can see, their guide for contractors to set up in Serbia (https://www.letsdeel.com/blog/how-to-set-up-as-an-entrepreneur-in-serbia https://www.letsdeel.com/blog/how-to-set-up-as-an-entreprene...) is outdated (2019 law changes are not taken into account) and even incorrect (VAT taxation limit of 8M RSD is not the same as fixed-taxation-if-total-revenue-of-less-than-6M-RSD), even though it says it was written on Oct 18th 2021. It also does not seem to help anyone in Serbia at all: basically, the article, other than being incorrect, suggests the things I had to do on my own (i.e. set up a company, and it has to be at least a Ltd/doo company since the start of 2020). I was hoping they'd incorporate in each of their "supported countries" and simply offer "regular employment". Basically, what I am saying is that they might be ripping you off :D
- mattnewport 5y ago
  I don't know about Serbia but in the countries we're dealing with so far (Canada and the UK) they have local companies in those countries that act as the employer of record and handle compliance with all the local employment, tax and payroll requirements.
  - xtracto 5y ago
    Thats how it works for me working in Mexico in a US company. There are several PEOs like Globalization Partners or via.work (these last are Ycombinator alumni I think). I get all the legal benefits from being employed in my country and the advantages of working for a US company.
  - necovek 5y ago
    Cool, so they are simply falsely advertising a much larger number of really supported countries than they really have.
MrRiddle 5y ago
I’m from Serbia, I’ve been working with US clients for a decade. I’m wondering why you’re not just sending Wire each month and call it a day? It’s up to the employee to choose their tax status, they can become entrepreneurs, open LLC or simply report wire transfers quarterly as an individual.
- necovek 5y ago
  I was mostly highlighting how LetsDeel service is not really "selling much" for hires in Serbia — I am not sure what's the value add in other countries. There are many ways to set up in Serbia, but for something resembling actual employment (which the topic is about), you are basically prohibited from using an entreprenuership since 2020, so you can either set up a LLC or take on a huge tax burden by self-reporting taxes.
  - MrRiddle 5y ago
    That’s true, I had to open an LLC because of that. However, tax burden for self reporting is exactly the same as when you’re employed at some company, it’s negative in other ways, like losing a bunch of benefits.
    - necovek 5y ago
      It was not the same last I looked: income tax rate was 20% vs 10% (though with 20% flat deductions, it was effectively 16%), and the gross calculations are done against is smaller even if percentage numbers are the same (taxes that employer pays come out on top of the gross, whereas when you self report they come out of the gross: eg. 20% on 100 is 20, but 20% out of (100+20) is 24). It's not that simple, but it's ultimately the worst way to get taxed.
- wooque 5y ago
  Fellow Serbian here. I work with one of the client over Deel. Value is that you can have card connected to your account and you can spend money without withdrawing it to Serbia, also you can choose how much and when to withdraw (useful to get around tax limits).

necovek 5y ago

From what I can see, their guide for contractors to set up in Serbia (https://www.letsdeel.com/blog/how-to-set-up-as-an-entrepreneur-in-serbia https://www.letsdeel.com/blog/how-to-set-up-as-an-entreprene...) is outdated (2019 law changes are not taken into account) and even incorrect (VAT taxation limit of 8M RSD is not the same as fixed-taxation-if-total-revenue-of-less-than-6M-RSD), even though it says it was written on Oct 18th 2021. It also does not seem to help anyone in Serbia at all: basically, the article, other than being incorrect, suggests the things I had to do on my own (i.e. set up a company, and it has to be at least a Ltd/doo company since the start of 2020). I was hoping they'd incorporate in each of their "supported countries" and simply offer "regular employment". Basically, what I am saying is that they might be ripping you off :D

mattnewport 5y ago
I don't know about Serbia but in the countries we're dealing with so far (Canada and the UK) they have local companies in those countries that act as the employer of record and handle compliance with all the local employment, tax and payroll requirements.
- xtracto 5y ago
  Thats how it works for me working in Mexico in a US company. There are several PEOs like Globalization Partners or via.work (these last are Ycombinator alumni I think). I get all the legal benefits from being employed in my country and the advantages of working for a US company.
- necovek 5y ago
  Cool, so they are simply falsely advertising a much larger number of really supported countries than they really have.

MrRiddle 5y ago

I’m from Serbia, I’ve been working with US clients for a decade. I’m wondering why you’re not just sending Wire each month and call it a day? It’s up to the employee to choose their tax status, they can become entrepreneurs, open LLC or simply report wire transfers quarterly as an individual.

necovek 5y ago
I was mostly highlighting how LetsDeel service is not really "selling much" for hires in Serbia — I am not sure what's the value add in other countries. There are many ways to set up in Serbia, but for something resembling actual employment (which the topic is about), you are basically prohibited from using an entreprenuership since 2020, so you can either set up a LLC or take on a huge tax burden by self-reporting taxes.
- MrRiddle 5y ago
  That’s true, I had to open an LLC because of that. However, tax burden for self reporting is exactly the same as when you’re employed at some company, it’s negative in other ways, like losing a bunch of benefits.
  - necovek 5y ago
    It was not the same last I looked: income tax rate was 20% vs 10% (though with 20% flat deductions, it was effectively 16%), and the gross calculations are done against is smaller even if percentage numbers are the same (taxes that employer pays come out on top of the gross, whereas when you self report they come out of the gross: eg. 20% on 100 is 20, but 20% out of (100+20) is 24). It's not that simple, but it's ultimately the worst way to get taxed.
wooque 5y ago
Fellow Serbian here. I work with one of the client over Deel. Value is that you can have card connected to your account and you can spend money without withdrawing it to Serbia, also you can choose how much and when to withdraw (useful to get around tax limits).