The lines between traditional workplaces have dissolved, enabling people to work remotely from abroad for US companies. Working remotely provides a flexible schedule for people who want to pursue their jobs while maintaining their freedom and liberty.
However, before you apply, be aware of the legal requirements for working for a U.S.-based company, regardless of whether you are a US citizen residing abroad or a non-US person looking to obtain employment there.
This article will take you through the steps to work remotely for a U.S.-based company from abroad.
Can I Work for a US-based Company While Living Abroad?
Working remotely for a US company while residing overseas is feasible as a digital nomad or a non-citizen. Advances in communication technology have made remote work more frequent and practical across international borders.
When contemplating this choice, one should be aware of possible difficulties such as time zone variations, tax and legal ramifications, and cultural adaptations.
Steps for Working Remotely for a US Company
Evaluate the Feasibility
Decide if working remotely is feasible based on your position, the company’s regulations, the legal limitations in the United States, and your present residency.
Also, verify that you possess the necessary legal authorizations, such as a current work visa or remote eligibility.
Understand Classification
Since they are in charge of their work, independent contractors can work from wherever. If you’re an employee, you must get your company’s authorization before working remotely from a different place, even overseas.
If you’re not a citizen of that country, you’ll often need a work permit in both situations. Watch out for your employer misclassifying you and always treating you like a worker.
Up to 30% of American businesses have previously misclassified at least one employee.
Discuss What Being a Remote Worker Entails
When considering working abroad, discussing remote work with your present or potential employer is essential.
Begin by indicating your interest in learning more about remote job options and emphasizing the advantages that could benefit you and the company. These may include greater flexibility and efficiency.
Please provide a detailed description of your intended remote work schedule, including working hours, communication channels, and measures to guarantee responsibility and teamwork.
Most crucially, many foreign countries prohibit tourists from working while on a tourist visa. Therefore, you must obtain a right-to-work authorization if hiring a contractor or an employee.
Essential Compliance Obligations for Remote Workers
Taxes and Statutory Benefits
When working remotely from abroad for a US company, it’s essential to understand the tax implications both in your home country and the United States to manage payroll taxes and statutory benefits.
You could have to submit taxes in both jurisdictions or claim tax credits to prevent paying taxes twice. You will also be required to complete a W-8BEN form as an employee.
But if you work for yourself, you must complete a W-8BEN-E. The recruiting employer can use these documents to demonstrate your ineligibility for US taxes.
Generally, employers must continue to deduct taxes in the social security system in the area in which you live.
Work Visas and Right-to-work Entitlements
Find out whether you can work remotely with your current visa or need to apply for a different kind of work visa by researching the visa rules of both the US and your home country.
You can work on a traveler’s visa in most countries for up to six months; beyond that, you’ll probably need to apply for a residence permit.
Should you be a citizen of any country in the European Union and intend to visit another country, you might qualify for a right-to-work permit. Remember that different countries have different visa requirements, and working remotely for a US company could impact your visa status.
Furthermore, confirm that you have the legal authority to work in your new country. Certain visas may limit or even forbid employment.
Currently, 49 countries offer remote work visas, so it’s best to visit and work in one of those countries if you plan to move around while working abroad.
Understand Permanent Establishment Risks
Remote workers should avoid permanent establishment classifications to keep their work visas. It’s illegal for remote workers (contractors and employees) to engage in certain economic activities such as:
- Outsourcing local work.
- Working for local subsidiaries or employers.
- Selling goods or services locally.
If you get caught outsourcing labor or engaging in any of these activities, local authorities can revoke your work visa and charge you with immigration fraud.
Tips for Working Remotely
- Set up a functional workspace: Establish a calm, well-organized workstation where you can concentrate and reduce interruptions in your home. Provide it with the necessary equipment, including a dependable computer, the internet, a webcam, a headset, and any specialist software you need for your work.
- Establish clear communication channels: Discuss expectations with your manager about preferred contact methods, work hours, availability, and communication channels. Ensure you know how to stay in touch with the team, attend virtual meetings, and communicate with coworkers.
- Manage time zones: When organizing meetings and honoring others’ work hours, remember that you and your team may be in various time zones. Use scheduling tools to handle time zone differences and determine mutually convenient meeting times.
- Cultivate work-life balance: Establish limits, take regular breaks, and prioritize self-care to maintain a healthy work-life balance. Establish work and personal time boundaries to avoid burnout and preserve general well-being.
Agree on a Payment Method as a Remote Worker
Usually, employees are paid through a bank transfer whether they’re working remotely or not, but independent contractors have a few options for payments:
- Direct bank transfer: Client payments can be made to the contractor’s bank account. This technique provides convenience and security, but depending on the contractor’s location and currency, there may be bank fees or international transfer expenses.
- Payment platforms: Clients and contractors can easily and securely make payments using online payment systems like Stripe, Payoneer, and PayPal. These platforms frequently have tools for invoicing, automatic transfers, payment tracking, and supporting several currencies.
US Immigration Tips for Remote Workers
Tell the Truth
The most critical advice for remote workers entering the United States is to tell the truth.
Failure to do so can have lasting consequences that can negatively impact your ability to obtain a future visa for the United States. You will no doubt regret this later.
Less is More
Less is more is the second most crucial piece of advice. Telling a US consulate or customs official your life story or itinerary is unnecessary and optional.
They are specific in what they are searching for while responding. Put another way, only provide a brief response to the questions posed.
Are you Working in the United States?
The short response is no. However, this is dependent on your circumstances, so exercise tact.
When an officer asks you this question, he’s probably trying to find out if you’re being paid by a US company for services rendered and referring to any possible work within the country.
Stated otherwise, any answer that could necessitate the requirement for additional documentation of work permission. You can add that you plan to meet with clients or colleagues, attend business meetings, or do anything related to your work.
Once more, traveling to the United States for business is not prohibited. However, it would be preferable if you knew that appropriate work authorization could be needed to be paid in the United States for services rendered by a US company.
Answering this issue is the hardest for digital nomads and remote professionals. Even with the best intentions, things can go wrong if you say something incorrectly or misrepresent your intentions.
There is no reason to interact with an immigration officer unless provoked; this is the “grey zone” that the US immigration framework currently finds itself in for remote workers.
Career Advancement for Remote Employees
Set Measurable Goals
Whatever your mode of employment, you may stay productive, hold yourself responsible, and move toward your desired prospects for progress by establishing quantifiable goals.
Additionally, you can use this to provide your manager with specific talking points that will assist you in demonstrating your development.
Log your Accomplishments
When working remotely, it can be challenging to make your accomplishments evident, depending on how many opportunities you have to collaborate with people and present your work.
Have you received compliments from a customer, finished a significant project, resolved a challenging issue, or recorded it?
Maintaining an achievement journal might benefit one-on-one meetings with your manager or an annual performance review.
Cultivate Relationships
By purposefully interacting with coworkers, remote workers might lessen their feelings of loneliness.
Maintaining ties with people in your organization guarantees you continue expanding your network and obtaining the essential in-person time.
Find ways to communicate with coworkers through video or chat, whether you’re taking part in a casual chat room, working together on a project, or attending an online social gathering.