Continued employment with current company

[Tim and Bethanie 1]

Maybe my best bet would be to start hitting the expat forums, just hoping someone here could point us in the right direction.

Tim works for a large international logistics company, there in the UK. He handed his resignation in yesterday and they are already pushing to get him to work remotely from home here in the states. They claim they are 99.9% sure this will happen they just need to sort out the details. The company has even been in touch with a business here (in one days time), to set up a secure network here in our home. Seems his options are per diem, or to actually be employed by a U.S office.

Any advice, are there downsides to this, plus sides whatever? Not sure about taxes, legalities of it all etc. Hoping since this company seems to employ many ex-pats all over the world they know and will sort it out. I just want the heads up from this end. Anyone have a good site to pass along, that might help out?

Bethanie

[JubJub 0]

Generally working for a company as an employee is much simpler for tax purposes, as you will get a W-2 each year, and taxes will taken out as you go. Also you will generally get reduced price health care, and other benefits.

Working as an independent contractor generally requires more paperwork to the IRS etc. However, if he can qualify for benefits thru your work, then it may be a better option, $$$ wise.

[Tim and Bethanie 1]

Generally working for a company as an employee is much simpler for tax purposes, as you will get a W-2 each year, and taxes will taken out as you go. Also you will generally get reduced price health care, and other benefits.

Working as an independent contractor generally requires more paperwork to the IRS etc. However, if he can qualify for benefits thru your work, then it may be a better option, $$$ wise.

Well hopefully they will simply transfer his records of employment to a US office so his salary is based here, then no worries I can handle that. My problem is if they continue to pay him from the UK office instead, or seems even possible through their Denmark (home) office. Fact is that his work load will be for the UK and Denmark offices not for an office stateside. Probably best to sit and wait out what they are going to do on their end. Bright side he will be employed non stop, and have a home office so will see him all day everyday!!!!

[rebeccajo 14]

They've probably done this before. I bet a visit to his HR department would clear up several of your questions. Large corporations usually have a good grip on what's required of them insofar as their 'remote' employees are concerned. After all, it's not just YOUR taxes and SS they need to handle - they need to legally comply with employer responsibility for those items!

I would make a wager that it won't make much more difference to them than say, a US company who has employees in many states and complies with the taxation issues for those individuals.

I'm no tax accountant, but I believe you are going to pay income tax in the country you reside in and no other. I'd be very surprised if it was otherwise.

Edited July 28, 2006 by rebeccajo

[zauberblume 0]

My husband is in a similar situation. He's a software developer. He is managing about three critical projects, which will take at least six months to complete. He works now as an independent contractor for this Swiss company. They asked him to continue his work in the U.S., if possible.

He has agreed. And he also gets to work non-stop, which definitely helps us financially. We don't have to worry about losing his income, which is actually quite high, especially after the currency conversion. He'll also work from home and we've already decided where his office will be.

My husband has done a bit of research so far and has determined that, in America, he will become either self-employed or open a small consulting business where this company will be his first contract. He needs a bit of capital to open a business, but he does not need a substantial amount of money.

He will be paid from this Swiss company via his bank account in Germany. I don't imagine that this will create tax problems, but we will be seeing a tax attorney in America as soon as possible. It's the only way to figure out exactly how such a process would work.

After these projects have been completed, then my husband will, hopefully, find a new software developer job near my university. We're not worried about health insurance since he can be on my plan once he gets a SSN.

[Tim and Bethanie 1]

My husband is in a similar situation. He's a software developer. He is managing about three critical projects, which will take at least six months to complete. He works now as an independent contractor for this Swiss company. They asked him to continue his work in the U.S., if possible.

He has agreed. And he also gets to work non-stop, which definitely helps us financially. We don't have to worry about losing his income, which is actually quite high, especially after the currency conversion. He'll also work from home and we've already decided where his office will be.

My husband has done a bit of research so far and has determined that, in America, he will become either self-employed or open a small consulting business where this company will be his first contract. He needs a bit of capital to open a business, but he does not need a substantial amount of money.

He will be paid from this Swiss company via his bank account in Germany. I don't imagine that this will create tax problems, but we will be seeing a tax attorney in America as soon as possible. It's the only way to figure out exactly how such a process would work.

After these projects have been completed, then my husband will, hopefully, find a new software developer job near my university. We're not worried about health insurance since he can be on my plan once he gets a SSN.

Hopefully as Becca has stated, we will strictly deal with paying taxes here and save for that as we go. I am just thrilled he has this chance, it will save for a job hunt, and taking jobs that aren't so great to just get by. He seems to think he can get at least a six month contract out of this. Great thing is the program he is in charge of has got to be used for the next three years, there is only one other person in the whole of Europe doing this for the company. Knowing him the way I do, he will prove himself yet again with this opportunity and that will keep him going even longer within the same company. We looked into transferring with the company sometime back, would mean a big move something we don't want to do at the moment.

I could put him on my insurance at work, but really hoping to cut back to part time once he is home. ( I need a break! lol) His company offers private health insurance in the Uk, probably need to see if they have the equivalant here in the states.

Since he has the Denmark office and Felixstowe office fighting over him, they have mentioned giving him special projects. When he finishes the projects he gets a bonus, guess to encourage those that work from home to keep motivated.

Anyways happy about this in so many ways, guess the little stuff will work out as we go. There still is that 1% chance it wont even happen.

[rebeccajo 14]

Keep us posted Bethanie. This is really good news for you two. Plus it makes for interesting immigration info!!!

[Tim and Bethanie 1]

Keep us posted Bethanie. This is really good news for you two. Plus it makes for interesting immigration info!!!

This is definetly employment of the future, seems to be steadily growing. Hopefully years to come we will see more of this for our fellow LDR's, making the transition a bit easier.