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Ask HN: Remote US employees = tax nightmare?

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Re: Ask HN: Remote US employees = tax nightmare?

#11

I hope the accounting firm explained why there might be a problem and how to fix it. That would be the mark of a trusted advisor. "Oh, you might have cancer! Bye!" The reason for your problem is that a human working in the USA is "doing business". And if the human is a company's employee, then the "doing business" attribute belongs to the employer. This is standard principal-agent theory. There are a couple of ways a…

I love how the "sane" solution is making a corporation and generating a "buttload" of paperwork

Re: Ask HN: Remote US employees = tax nightmare?

#12
post #3

The US is, by definition, a tax nightmare because there are generally three (and sometimes four) tax jurisdictions to consider; 1) the US (federal), 2) the state where the employee resides (state), 3) the county in which their city is contained, and 4) the city in which they live. The other thing is that "sales tax" is collected by states, not by the Federal government. They are generally pretty inept at collecting t…

Be careful with the assumption that states are inept! Some are very capable, much more so than the IRS.
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