One of the benefits of a remote team is the ability to find the best of the best across the globe and bring their talents to your company. However, when hiring international employees, several factors may not only affect your productivity but also cost you money. Let’s take a look at things you should carefully think about before hiring international employees:
Hiring individuals in various time zones can have many benefits. For example, no matter the time of day, you may always have employees who are working and building up your company’s revenue. However, this may complicate your meeting schedule and even back-and-forth communication. Meetings may occur in the middle of the night for certain employees, and responses to emails or even chats may be delayed an entire day.
Find a process that works for you. For example, rather than in-person meetings, you can record video conferences or create podcasts to easily distribute information. In your remote work policy, you can require employees to respond to emails within a certain time frame.
Taxes and Registering Employees
One of the most difficult aspects of hiring international employees is managing your payroll and meeting all tax requirements. As there are different laws and regulations depending on the country in which the employer is domiciled and even where your employees reside, it may be in your best interest to work with a professional to ensure you are fully compliant.
In the United States, for example, all companies must report to the IRS the salaries they pay their employees. But to do this, they need employees’ social security numbers, and federal, state, and sometimes local taxes must be paid. For employees who don’t live in the United States, options include:
- Paying the individuals as independent contractors rather than employees. The work also needs to meet the independent contractor test, as per the IRS.
- Using home-country payroll.
- Making them leased employees.
Keep in mind that many of these options may not be legal for your specific situation, so work closely with a professional to ensure you make the best decision.
Before hiring international employees, carefully consider the above factors to ensure you meet all compliance and legal regulations.
Author: Alisiana Peters
Alisiana is a marketing coordinator at HiringThing, an award-winning online recruiting software provider dedicated to changing the way businesses hire talent. Questions? Contact HiringThing Marketing.