Remote work has become the best way for companies to save costs while having the best workforce. Companies can have their employees come from any part of the world provided they are experts in their field. Compared to previous years, this is a massive benefit to the world and businesses.
This article will look at what remote work is, the requirements for working for a USA company, and USA companies hiring remote foreign workers. We will also include other important details to give you wholesome information. Ensure you read to the end.
What is Remote Work?
Remote work simply means working from anywhere you are. You can be employed by a US company but working from Nigeria. You can also be employed in Lagos, Nigeria, and be working from Abuja, Nigeria. The key point here is that remote work can be done from anywhere. It can also be intercountry or intra-country. This article, however, focuses on remote work from an inter-country perspective.
Can US Companies Hire Foreign Remote Workers?
Yes, they can. The pandemic opened wider an already opened door of remote work. The death toll from the pandemic created job vacancies. This created a need for more workers to take over. However, having experienced working from home and how cost-effective it was, more companies choose to hire remote workers. Therefore, companies in the US hire foreign workers who can deliver on their job remotely.
Qualifications for Working Remotely for a US Company
To work remotely, the basic qualifications or requirements are your ability to use the internet and technological devices. Then, a steady network and light supply. These are the basic qualifications.
For more specific qualifications, it depends on the industry that you are working for. The qualifications that a tech company requires are different from what a non-tech company requires. Also, the kind of job that you perform for the company will influence the qualifications that you will need. The company’s policies play a role too. A company may decide that you must have a degree in your chosen field to work with them while another may just focus on your skill.
Therefore, the qualifications for working remotely for a US company are dependent on several factors like the industry type, your job role, and company policies.
If you have programming skills, coding skills, and any of the IT skills, securing a remote job in any of these aforementioned companies will be highly obtainable.
Note: the list above is not exhaustive. For more companies hiring remotely, you can check online.
How US Companies Hire Remote Foreign Employees
The relationship between a foreign employee and the US Company (employer) is under the control of the local laws and policies of the employee’s country. The governing laws include labor, tax, and employment laws. Therefore, when setting up the payroll of the foreign remote worker, put these three (3) laws into consideration.
There are 2 ways a US company takes to hire a foreign remote employee. They are:
Setting up an Entity
Using Employer of Records (EOR)
Setting up an Entity
This simply means starting a local branch of that business. It’s no news that starting up a business has a lot of lows to it, especially as the business has to comply with the local standards. However, it is one way to hire foreign workers.
It is not a favorable option when you
are not considering expanding to another country
just want to hire one or two employees.
You can’t keep setting up an entity for any foreign employee you wish to employ especially as the talent pool to choose from are numerous and of different nationalities.
Using Employer of Records
Foxhire defines an Employer of Records (EOR) as an organization that serves as the employer for tax purposes while the employee performs work at a different company. In other words, EOR is an organization that is saddled with the employment tasks and liabilities of the local country on behalf of the employer.
EORs operate locally in the foreign worker’s country and they ensure that all the responsibilities (in compliance with the local laws) of the employer towards the employee are met. This is a much better option for hiring foreign employees. The employer (in this case a US company) just focuses on controlling the workflow of the foreign remote employee while the EOR handles the legal local matters.
To learn more about EOR, you can read this article by Foxhire.
Agencies That Hire Remote Workers for USA Companies
The following agencies hire workers remotely for companies
This is a remote recruitment agency that recruits solely for tech companies. They recruit software developers and engineers for tech companies regardless of the size and budget. As part of doing their due diligence, they ensure these companies get focused, full-time qualified remote software developers and engineers. They also ensure that they meet the skill set requirements, fit the culture, and want to commit to a long-term career in tech and with the company.
This is a recruitment agency that supplies manpower to different countries and different companies. Alliance Recruitment Agency is the best for hiring a remote employee or for searching for a job. They are present in about 4 different continents and are located in the Middle East, Canada, United Kingdom, Asia Pacific, North America, and Georgia-USA.
Contact: click here to contact Alliance Recruitment Agency.
This remote recruitment agency was formed by a group of experienced recruiters. The agency has a proven track record in sourcing suitable manpower for any position. They have integrity, innovation, respect, and partnership as their values. With the use of technology, they are able to communicate and engage both employers and job seekers.
Founded by Sara Sutton in 2007, FlexJobs was created to provide a trusted, more effective, friendly, and overall better way to find professional remote, and flexible jobs. Anyone who wants a job with some kind of flexibility can visit their site and find what they want.
Working Nomads was founded by Peter Marcely and Marie Uherkovia. In their bid to escape their repetitive and boring life, they created a website to help other individuals like them. Working Nomads connect professionals who want to work remotely with companies offering remote jobs.
Pangian is a digital nation of people working remotely from anywhere with their values being diversity, innovation, and connection. It was founded by Mag who has always dreamed from when she was a child to travel the world. Her success with running a multi-million dollar program 100% remotely and managing teams on 4 continents led her to create Pangian.
Remotive was founded by Rodolphe in 2014. They have a mission to help tech professionals who want to go remote secure their dream jobs. The website also has a career advice section where you can get advice on securing a remote job.
Authentic jobs was created in 2005 and have since been connecting creatives with great companies and work opportunities. It is now a leading employment and hiring service with a long list of deeply impressive clients.
PowertoFly was founded in 2014 by Milena Berry and Katherine Zaleski. It was founded as a way of “fast-tracking economic equality by the upskilling and connecting underrepresented talent to roles in highly visible sectors”. They have a remote team of over 100 members and cover 27 countries. They are remote in themselves and provide access to remote jobs.
This website was founded to help individuals who want to avoid commuting to work find jobs that they can do right from wherever they are. It has jobs from different sectors listed on the website and you can search for remote jobs by category.
Payment Methods for Receiving Your Pay While Working Remotely for a US Company
Before hiring a remote foreign worker, there are various things that employers put into consideration. Some areas considered are:
Currency for payment: the currency for payment is subject to local laws.
Frequency of Payment: the frequency of payment differs from country to country.
Tax: the remote foreign worker pays taxes in their country. Therefore, the employer has to deduct the tax and remit it to the appropriate body on time.
Social Security: some countries include social security as part of the benefits that employees get.
For this article, we will focus on payment methods.
There are different payment methods that employers use to pay their employees. These methods have their pros and cons.
Direct Bank Transfers or Wire Transfers
Online Payment Platforms
Employer of Records
Direct Bank Transfer or Wire Transfer
This simply refers to making a bank transfer from an international account to the remote employee’s local bank account.
The employee receives their salary directly in their local bank accounts
It may take days for the employee to receive the payment
High exchange rate for the conversion
High commissions to be paid to the bank
Online Payment Platforms
There are several online payment platforms dedicated to receiving funds internationally. These platforms provide a better option for remote workers to receive their pay without the hassles associated with direct bank transfers.
Accepts multiple currencies
Ease of access
Fast means of receiving funds
Can’t offer the safety that banks offer
Not for storing money
The digitalization of the world has seen the rise of cryptocurrency. Some countries accept crypto while some don’t. For those whose countries accept crypto, payment with cryptocurrency can be a great option.
Ease of access
The use of stable coins can preserve the value of funds
For those who can trade crypto, it makes it easier to trade as the funds are there at the time of need.
Not accepted in all countries
Not all employers are conversant with cryptocurrency.
Employer of Records
Employer of Records as we discussed earlier is an organization that handles the local recruitment of labor, taxes, and payments of local labor. Being that this is the area of operation, they are the best payment method to use. This is because they know the local laws and regulations, know the amount of taxes to deduct from the employee’s salary and even the actual governing body to remit it to and when to remit it. They take the stress off the employer and this makes them the best payment choice. All the employer has to do is to remit the employee’s payment to them and they take over with the rest.
Frequently Asked Questions
Question: Is it possible to be transferred to the US after working as a remote worker for a period of time?
Answer: The answer is yes. This is possible depending on your value to the company and the possible benefit that you will bring to the company.
Question: Does a remote foreign worker for a US Company pay tax in the USA?
Answer: No. A remote foreign worker pays tax in his/her country and not the USA.
Question: How do I receive my payments from a US Company being a remote foreign worker?
Answer: There are different payment methods and you can find them listed in the article. However, the means of receiving your payment will be discussed with your employer during the processing of your employment.
Hiring remote foreign workers can have its benefits as well as its downside. It can be quite cost-effective, however, there are legal sides that could prove tedious. To curb these, you can make use of Employer of Records.