Can a US Company Employ and Pay Someone in Another Country?

The growth of remote work has opened up a global talent pool to US employers, but hiring abroad is not as simple as with a US-based employee.  US companies recruiting skilled employees in other countries will have the task of finding an efficient way to employ and pay them. 

Like Comment

This overview will describe the methods you can use to hire and pay foreign employees, while maintaining full compliance at home and overseas.

Can a US company hire a non-US citizen in another country?

If your company is new to hiring foreigners in their own country, there are some key considerations as you move forward.  The central idea to remember is that the labor, tax and employment laws of the employee’s country will govern the relationship.  US companies will find that the labor policies of many countries favor employee rights, and offer statutory entitlements more generous than in the US.

You will have to setup a payroll that meets the country’s employment regulations, and also provide the employee with all mandatory benefits and entitlements.  The employee will pay tax in their own country, so that needs to be calculated and withheld accurately in payroll.

If you can accomplish all of this, then you can successfully hire and manage a foreign employee who offers the talent that you need.  There are no legal prohibitions in the US against hiring remote workers abroad, so the focus needs to be on compliance in the foreign country.

How can a US company hire and pay a foreign employee abroad?

The two most common ways to hire and pay a foreign employee are to... read more

Shield GEO makes international employment simple. Our customers use Shield GEO to employ and payroll hundreds of workers in over fifty countries. Find out more.

Tim Burgess

Director, Shield GEO Services Ltd