How to Pay Remote Employees
fredperrotta.com
How to Pay Remote Employees
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Re: How to Pay Remote Employees
#2> Wire transfer fees are a set amount, usually around $40, not a percentage of the total amount transferred. You can do the math to figure out at what dollar threshold sending wire transfers through your bank becomes cheaper than using Transferwise.
Absolutely do the math, but keep in mind that fees are not the only fees when doing FX: few banks will use the spot FX rate for wire transfers, they'll typically add a spread of about 3%.
Re: How to Pay Remote Employees
#3I was really hoping this would go into some of the tax implications as well.
I was semi-recently denied a fully remote job because my state of residence would have caused the company to have a "sufficient physical presence" in the state, and meant that they would have to do a lot of extra work as well as paying extra sales taxes for sales in that state as well as setup the infrastructure to send the required taxes to that state.
It was enough of a hassle and cost that they decided to go with someone else over me, because they were in a state that the company already had employees in (at least that's what they told me...)
Re: How to Pay Remote Employees
#4I was really hoping this would go into some of the tax implications as well. I was semi-recently denied a fully remote job because my state of residence would have caused the company to have a "sufficient physical presence" in the state, and meant that they would have to do a lot of extra work as well as paying extra sales taxes for sales in that state as well as setup the infrastructure to send the required taxes to…
Why not mention the state?
You should contact your state representative (not member of Congress) and state senator (not US Senator) and let them know that you were denied a well-paying job because of the onerous standards your state has for remote work. They might be inclined to change it.
Re: How to Pay Remote Employees
#5I was really hoping this would go into some of the tax implications as well. I was semi-recently denied a fully remote job because my state of residence would have caused the company to have a "sufficient physical presence" in the state, and meant that they would have to do a lot of extra work as well as paying extra sales taxes for sales in that state as well as setup the infrastructure to send the required taxes to…
That really sucks. It is a reality I see some of my clients facing too.
I've wondered what would happen if you offered to work as a self-employed 1099 employee, or if you opened your own LLC.
Does that employer offer health insurance? That's pretty much the only reason why someone would demand being a W2 employee in my mind. And there's lots of ways to get health insurance in this country.
Re: How to Pay Remote Employees
#6Almost every link in the article is a referral or affiliate link.
Re: How to Pay Remote Employees
#7I was really hoping this would go into some of the tax implications as well. I was semi-recently denied a fully remote job because my state of residence would have caused the company to have a "sufficient physical presence" in the state, and meant that they would have to do a lot of extra work as well as paying extra sales taxes for sales in that state as well as setup the infrastructure to send the required taxes to…
Trinet [+] is the usual go-to for US-based fully remote organizations so they don't need to maintain business registrations in each state their employees reside in.
Disclaimer: Was employed through Trinet at a fully remote org.
Re: How to Pay Remote Employees
#8> Wire transfer fees are a set amount, usually around $40, not a percentage of the total amount transferred. You can do the math to figure out at what dollar threshold sending wire transfers through your bank becomes cheaper than using Transferwise. Absolutely do the math, but keep in mind that fees are not the only fees when doing FX: few banks will use the spot FX rate for wire transfers, they'll typically add a sp…
yeah, you're getting skimmed hard between wire transfer cost and that spread. If you have access to an FX brokerage with reasonable fee, definitely use that.
I personally use Interactive Brokers, one free wire transfer per month, and you can get spot price on your exchanges. Only fees I pay are a couple dollars IB charges on exchanges, and twenty dollars or so my bank charges for receiving wire transfers. Only downside is that they hold the money for 3 months before allowing withdrawal into a different bank.
Re: How to Pay Remote Employees
#9Almost every link in the article is a referral or affiliate link.
It was like reading an advertisement
Re: How to Pay Remote Employees
#10I was really hoping this would go into some of the tax implications as well. I was semi-recently denied a fully remote job because my state of residence would have caused the company to have a "sufficient physical presence" in the state, and meant that they would have to do a lot of extra work as well as paying extra sales taxes for sales in that state as well as setup the infrastructure to send the required taxes to…
Why not mention the state? You should contact your state representative (not member of Congress) and state senator (not US Senator) and let them know that you were denied a well-paying job because of the onerous standards your state has for remote work. They might be inclined to change it.
It's unlikely a state is going to unwind their taxing and funding model for a few remote jobs (nor should they).
EDIT: OP mentions the state in question is Florida, which has no personal income tax, but does have a state sales tax (disclaimer: I am also a resident of Florida); I believe a recent court decision on the HN front page [+] makes that a moot point (the business will have to collect those sales taxes regardless of nexus), which leads me to believe their decision not to hire OP was a bit short sighted.
[+] https://news.ycombinator.com/item?id=17365366 | https://www.bloomberg.com/news/articles/2018-06-21/states-ca...
(Online Retailers Can Be Forced to Collect Tax, High Court Rules)