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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 em

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
  That's literally tax evasion — I wouldn't brag about it if I were you :)

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
That's literally tax evasion — I wouldn't brag about it if I were you :)