Why do remote companies require working in the US?
Many of the high-tech opportunities for remote work require that you are working in the US. Why?
I lived in the US until I graduated university, but I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US was required periodically, I would need to work it out.
Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?
telecommute remotework
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Many of the high-tech opportunities for remote work require that you are working in the US. Why?
I lived in the US until I graduated university, but I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US was required periodically, I would need to work it out.
Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?
telecommute remotework
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Shifra is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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5
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
4
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago
add a comment |
Many of the high-tech opportunities for remote work require that you are working in the US. Why?
I lived in the US until I graduated university, but I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US was required periodically, I would need to work it out.
Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?
telecommute remotework
New contributor
Shifra is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Many of the high-tech opportunities for remote work require that you are working in the US. Why?
I lived in the US until I graduated university, but I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US was required periodically, I would need to work it out.
Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?
telecommute remotework
telecommute remotework
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Shifra is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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New contributor
Shifra is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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edited 7 hours ago
Shifra
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asked 10 hours ago
ShifraShifra
13724
13724
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5
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
4
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago
add a comment |
5
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
4
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago
5
5
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
4
4
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago
add a comment |
4 Answers
4
active
oldest
votes
Why do remote companies require working in the US?
Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
|
show 8 more comments
There are many potential reasons for a company to discriminate based upon your country.
Tax Reasons
Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.
This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.
Labor Laws
Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?
Technology & Export Laws
There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.
Intellectual Property Concerns
Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.
Marketing
Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.
Government Contracts
Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).
Security
Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.
This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.
Conclusion
The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.
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As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.
Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
|
show 3 more comments
I used to work with Crossover, a US based company and I have seen them work with people across the world. 100% remote. My own team had people from Ireland, Russia, Romania and India.
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This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
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4 Answers
4
active
oldest
votes
4 Answers
4
active
oldest
votes
active
oldest
votes
active
oldest
votes
Why do remote companies require working in the US?
Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
|
show 8 more comments
Why do remote companies require working in the US?
Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
|
show 8 more comments
Why do remote companies require working in the US?
Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.
Why do remote companies require working in the US?
Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.
answered 10 hours ago
sf02sf02
10.1k61841
10.1k61841
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
|
show 8 more comments
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
25
25
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
100% the correct answer. As someone who helped start up and run a US-based consulting operation that had a single foreign employee, I can absolutely say that it gets undesirably complicated very quickly. In most types of jobs, there are easily enough candidates in the US to fill any position, there's simply no need to introduce the complexity. Further, US-based employers who wish to take advantage of specific overseas employment pools will usually do so through an outsourcing vendor, not as direct employees, to make the relationship simpler.
– dwizum
10 hours ago
6
6
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
Part of the difficulty is that employment and tax law in many jurisdictions involves employer obligations that cannot be waived or transferred to the employee, even with the employee's enthusiastic consent.
– Patricia Shanahan
8 hours ago
1
1
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
The only complex part is determining your tax obligation in the country of residence, which would be my own responsibility. A US citizen is not complex for the employer.
– Shifra
8 hours ago
4
4
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
@Shifra See, for example, Persons Employed by a Foreign Employer - FUTA. Although that is a US tax, other countries can and do have similar rules.
– Patricia Shanahan
8 hours ago
7
7
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
It is not just taxes, but the whole of labor law. The employer would need to know things like the minimum annual vacation and holidays in each country.
– Patricia Shanahan
6 hours ago
|
show 8 more comments
There are many potential reasons for a company to discriminate based upon your country.
Tax Reasons
Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.
This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.
Labor Laws
Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?
Technology & Export Laws
There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.
Intellectual Property Concerns
Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.
Marketing
Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.
Government Contracts
Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).
Security
Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.
This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.
Conclusion
The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
There are many potential reasons for a company to discriminate based upon your country.
Tax Reasons
Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.
This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.
Labor Laws
Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?
Technology & Export Laws
There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.
Intellectual Property Concerns
Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.
Marketing
Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.
Government Contracts
Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).
Security
Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.
This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.
Conclusion
The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
There are many potential reasons for a company to discriminate based upon your country.
Tax Reasons
Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.
This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.
Labor Laws
Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?
Technology & Export Laws
There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.
Intellectual Property Concerns
Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.
Marketing
Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.
Government Contracts
Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).
Security
Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.
This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.
Conclusion
The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
There are many potential reasons for a company to discriminate based upon your country.
Tax Reasons
Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.
This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.
Labor Laws
Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?
Technology & Export Laws
There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.
Intellectual Property Concerns
Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.
Marketing
Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.
Government Contracts
Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).
Security
Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.
This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.
Conclusion
The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 2 hours ago
CodeSeeker
2,16611124
2,16611124
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 6 hours ago
CobyCodeCobyCode
3114
3114
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
CobyCode is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
add a comment |
As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.
Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
|
show 3 more comments
As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.
Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
|
show 3 more comments
As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.
Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.
As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.
Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.
answered 10 hours ago
PeteConPeteCon
17.1k74667
17.1k74667
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
|
show 3 more comments
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.
– JonathanReez
5 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?
– Patrice
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@Patrice exactly, which is why its the way to go
– JonathanReez
4 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."
– David Richerby
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
@DavidRicherby at least in Czech Republic it is 100% legal to be self employed for a foreign corporation with no local legal entities. But of course many companies would rather not bother researching the legal facts and just prefer to hire American residents.
– JonathanReez
3 hours ago
|
show 3 more comments
I used to work with Crossover, a US based company and I have seen them work with people across the world. 100% remote. My own team had people from Ireland, Russia, Romania and India.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
add a comment |
I used to work with Crossover, a US based company and I have seen them work with people across the world. 100% remote. My own team had people from Ireland, Russia, Romania and India.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
add a comment |
I used to work with Crossover, a US based company and I have seen them work with people across the world. 100% remote. My own team had people from Ireland, Russia, Romania and India.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
I used to work with Crossover, a US based company and I have seen them work with people across the world. 100% remote. My own team had people from Ireland, Russia, Romania and India.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered 4 hours ago
SooriyaSooriya
1
1
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Sooriya is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
add a comment |
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
This may be good information for the original poster (OP), but it doesn't answer the question.
– J. Chris Compton
3 hours ago
1
1
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
This does not provide an answer to the question. Once you have sufficient reputation you will be able to comment on any post; instead, provide answers that don't require clarification from the asker. - From Review
– J. Chris Compton
3 hours ago
add a comment |
Shifra is a new contributor. Be nice, and check out our Code of Conduct.
Shifra is a new contributor. Be nice, and check out our Code of Conduct.
Shifra is a new contributor. Be nice, and check out our Code of Conduct.
Shifra is a new contributor. Be nice, and check out our Code of Conduct.
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5
Not all companies are unwilling to hire non-US remote workers. So it comes down to company preference. "Why should I be automatically disqualified for not residing in the US if the entire company is composed of remote workers?" - because that particular company chooses to disqualify you. Just look elsewhere.
– Joe Strazzere
8 hours ago
As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.
– Kyralessa
7 hours ago
4
"I obviously would be responsible for managing my tax burden with my home company," Definitely not universal that you can just do this. "if travel to the US was required periodically, I would need to work it out." Maybe they don't want to deal with flying you around?
– Azor Ahai
7 hours ago
You're most likely not on the level where companies would want to bother employing a foreign candidate. Get more experience and try again later.
– JonathanReez
5 hours ago
Not sure if you're into coding, but just try to imagine all the exceptions that need to be handled, from tax withholding issues (dual-income etc.) to occupational safety regulations and what happens if you injure yourself etc.
– Mehrdad
49 mins ago