How do companies handle tax/payment for remote workers?

Posted by zippy786 on Saturday November 07, 2015 @08:42AM
from the self-post dept.

Just wondering when one is working remotely and say the parent company is in United States, how does the company handle tax/payment for remote workers ? I assume payment is wired but what about tax ? Parent company does not have any branch in the country remote worker is living.

( 4 comments | 5 points | on HN )

Re:How do companies handle tax/payment for remote workers? by tvm on Saturday November 07, 2015 @02:00PM (#10525803)

I'd say that if it's regular contract, you pay the tax in the country where the company resides (+ social / health tax). Freelancing is different and the pay is taxed in the country where you reside.

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Re:How do companies handle tax/payment for remote workers? by jamescrowley on Saturday November 07, 2015 @09:01AM (#10524797)

I imagine in many cases this would be on a freelance/contract basis and in that case it would generally be the remote worker who is responsible for paying the appropriate taxes in their country

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Re:How do companies handle tax/payment for remote workers? by seekingcharlie on Saturday November 07, 2015 @05:10PM (#10526426)

Remote workers are usually on a contract and pay their own tax in their country.

If the company wants them to be a full employee, they have to pay tax/health based on the law of where the remote workers lives.

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Re:How do companies handle tax/payment for remote workers? by brudgers on Saturday November 07, 2015 @12:04PM (#10525354)

In the US, the company only has to withhold income for statutory employees. If this presents problems, then the work is usually let by contract.

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