4 ms·

We use a service called Deel, but we are US entity and that helps in many cases. Essentially they have companies in most countries and you pay them (deel) dire

We use a service called Deel, but we are US entity and that helps in many cases. Essentially they have companies in most countries and you pay them (deel) directly and then they payout to your staff. This also simplifies benefits for healthcare, taxes, retirement. If you find it helpful, heres my referral code https://deel.com/referrals/Michael-n53jPEZJ https://deel.com/referrals/Michael-n53jPEZJ

andrewingram 4y ago
How are preferential equity schemes handled? i.e in the UK, best case tax rate on equity is 10%. But if you're not on government-approved scheme, you'll get taxed at around 55% in the event of a meaningful exit. When I've raised this previously, the point has been dismissed as "45% of lots is still lots", but if you're doing an expected returns calculation and considering other jobs (like a large well-paying org with RSUs) it becomes quite meaningful.
lm28469 4y ago
What happens when an employee is fired or quits ? Does he qualifies for unemployment benefits ? And who pays for it ?
- vladvasiliu 4y ago
  It probably depends on the local laws, but here in France, such a company would employ you and pay all the taxes that go with your employment contract, like social security, health insurance, unemployment, etc. Unemployment benefits are paid by the state, through the taxes that are levied on those who are employed.
jcims 4y ago
I feel like this will continue to evolve until we get something akin to virtual countries, where I pay fees/taxes into some virtual substrate that manages my access to services regardless of where I am.
- lm28469 4y ago
  > where I pay fees/taxes into some virtual substrate The thing is that you're supposed to be tax where you live to finance the public infrastructure you use, pension schemes of locals, &c. I know a few of wantrepreneurs who live abroad, bill under an Estonian "e company" , don't pay taxes locally and on top of that illegally get unemployment benefits from their home country This trend has to cease and with the new "remote first" mentality I can imagine it won't stop anytime soon
  - jcims 4y ago
    Sure that happens today, in part because it's so painful to 'do the right thing'. I stayed in San Diego for a month last year and didn't pay a single penny of income tax to the city. Meanwhile my home city was paid for my income and I was a lightweight customer during that month. I think the idea would be something along the lines of creating virtual citizens that live in the locality and meet all of the obligations of the locality, and the company just handles swapping the association of these citizens to real people when the time comes. So then when you show up with your passport from Roamatopia all of the paperwork has been done to make sure you are pulling your weight. Obviously this can be gamed as well but I like the idea.
    - ghaff 4y ago
      >I stayed in San Diego for a month last year and didn't pay a single penny of income tax to the city. States are starting to crack down on income taxes for non-residents working there. Obviously in many cases they have no way of tracking but if you're there on business (and have expenses), Concur for one offers companies an audit service. The rules vary by state but if you spend enough time in a state and pass some threshold you can be on the hook to file income taxes. (A lot of the original impetus for these sorts of laws was to tax entertainers and pro athletes.)
      - jcims 4y ago
        New York City is pretty aggressive about this and has been for at least 7-8 years...at least if you work for a bank headquartered there. I had to provide a separate attestation that I did or did not work over a certain amount of time and, if so, had a bunch of extra paperwork to do. In my case it was a privately funded trip, nobody at my company had any clue where I was beyond the ones I told.

andrewingram 4y ago

How are preferential equity schemes handled? i.e in the UK, best case tax rate on equity is 10%. But if you're not on government-approved scheme, you'll get taxed at around 55% in the event of a meaningful exit. When I've raised this previously, the point has been dismissed as "45% of lots is still lots", but if you're doing an expected returns calculation and considering other jobs (like a large well-paying org with RSUs) it becomes quite meaningful.

lm28469 4y ago

What happens when an employee is fired or quits ? Does he qualifies for unemployment benefits ? And who pays for it ?

vladvasiliu 4y ago
It probably depends on the local laws, but here in France, such a company would employ you and pay all the taxes that go with your employment contract, like social security, health insurance, unemployment, etc. Unemployment benefits are paid by the state, through the taxes that are levied on those who are employed.

jcims 4y ago

I feel like this will continue to evolve until we get something akin to virtual countries, where I pay fees/taxes into some virtual substrate that manages my access to services regardless of where I am.

lm28469 4y ago
> where I pay fees/taxes into some virtual substrate The thing is that you're supposed to be tax where you live to finance the public infrastructure you use, pension schemes of locals, &c. I know a few of wantrepreneurs who live abroad, bill under an Estonian "e company" , don't pay taxes locally and on top of that illegally get unemployment benefits from their home country This trend has to cease and with the new "remote first" mentality I can imagine it won't stop anytime soon
- jcims 4y ago
  Sure that happens today, in part because it's so painful to 'do the right thing'. I stayed in San Diego for a month last year and didn't pay a single penny of income tax to the city. Meanwhile my home city was paid for my income and I was a lightweight customer during that month. I think the idea would be something along the lines of creating virtual citizens that live in the locality and meet all of the obligations of the locality, and the company just handles swapping the association of these citizens to real people when the time comes. So then when you show up with your passport from Roamatopia all of the paperwork has been done to make sure you are pulling your weight. Obviously this can be gamed as well but I like the idea.
  - ghaff 4y ago
    >I stayed in San Diego for a month last year and didn't pay a single penny of income tax to the city. States are starting to crack down on income taxes for non-residents working there. Obviously in many cases they have no way of tracking but if you're there on business (and have expenses), Concur for one offers companies an audit service. The rules vary by state but if you spend enough time in a state and pass some threshold you can be on the hook to file income taxes. (A lot of the original impetus for these sorts of laws was to tax entertainers and pro athletes.)
    - jcims 4y ago
      New York City is pretty aggressive about this and has been for at least 7-8 years...at least if you work for a bank headquartered there. I had to provide a separate attestation that I did or did not work over a certain amount of time and, if so, had a bunch of extra paperwork to do. In my case it was a privately funded trip, nobody at my company had any clue where I was beyond the ones I told.