4 ms·

How does that work? Are there just no regulations for remote work like there are with H-1Bs? No financial hit for companies that hire abroad? No tax repercussio

How does that work? Are there just no regulations for remote work like there are with H-1Bs? No financial hit for companies that hire abroad? No tax repercussions? I’m genuinely asking. I don’t know and I don’t know how to even begin looking for such an answer.

amalcon 4y ago
There are pretty serious costs involved in hiring globally, especially due to managing the tax implications but that's not the only reason. Usually you can get around this by hiring foreign contractors instead of employees, but not always. There are companies that specialize in handling this for you, though. Some of them are on the list! Most of the others probably contract someone to handle it for them.
- actionfromafar 4y ago
  You basically hire someone from a "contractor", but the "contractor" has a business entity in the country where the worker is, and employ the worker, pay taxes, insurance if applicable and so on. There are some large companies which have a presence in a hundred or so countries. (There's a term for this, but it escapes me at the moment.)
  - triyambakam 4y ago
    At previous company I was hired as a contractor and the contractor company was my own S-Corp
    - tinglymintyfrsh 4y ago
      Were the tax advantages better as an S-Corp than an LLC?
  - dimisdas 4y ago
    They are called payroll providers who act as the Employer of Record (EOR).
    - convolvatron 4y ago
      in the US we often call them body shops
      - pcthrowaway 4y ago
        Not exactly the same thing. With a body shop, you pay the shop and they supply "someone" With EOR you post your job position, select your hire, and then pay the EOR to be their "official" employer, since they are multinational, and then the EOR provides "services" to you.
    - actionfromafar 4y ago
      Employer of Record was the term I couldn't remember.
    - pcthrowaway 4y ago
      I've also heard them called Professional Employment Organizations (PEOs) - https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/whatisapeoanditsadvantagesanddisadvantages.aspx https://www.shrm.org/resourcesandtools/tools-and-samples/hr-...

amalcon 4y ago

There are pretty serious costs involved in hiring globally, especially due to managing the tax implications but that's not the only reason. Usually you can get around this by hiring foreign contractors instead of employees, but not always. There are companies that specialize in handling this for you, though. Some of them are on the list! Most of the others probably contract someone to handle it for them.

actionfromafar 4y ago
You basically hire someone from a "contractor", but the "contractor" has a business entity in the country where the worker is, and employ the worker, pay taxes, insurance if applicable and so on. There are some large companies which have a presence in a hundred or so countries. (There's a term for this, but it escapes me at the moment.)
- triyambakam 4y ago
  At previous company I was hired as a contractor and the contractor company was my own S-Corp
  - tinglymintyfrsh 4y ago
    Were the tax advantages better as an S-Corp than an LLC?
- dimisdas 4y ago
  They are called payroll providers who act as the Employer of Record (EOR).
  - convolvatron 4y ago
    in the US we often call them body shops
    - pcthrowaway 4y ago
      Not exactly the same thing. With a body shop, you pay the shop and they supply "someone" With EOR you post your job position, select your hire, and then pay the EOR to be their "official" employer, since they are multinational, and then the EOR provides "services" to you.
  - actionfromafar 4y ago
    Employer of Record was the term I couldn't remember.
  - pcthrowaway 4y ago
    I've also heard them called Professional Employment Organizations (PEOs) - https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/whatisapeoanditsadvantagesanddisadvantages.aspx https://www.shrm.org/resourcesandtools/tools-and-samples/hr-...