# EU citizen working remotely for US company



## epicx (Dec 11, 2011)

Hello all,

First of all thank you for providing this site for all of us who are lost in the multitude of information available out there. 

My question refers for work eligibility and visa for a Romanian and Hungarian (double) citizen.

I have been in the US since 09 on a student visa F1 finishing my MBA. I have worked for one year under the OPT umbrella, which will expire on the 17th of Jan 2012. 
The company i work for is willing to keep me on payroll once I return to Romania (telecom business, work remotely over the internet).
What type of visa do i need to be eligible to keep working even if not phisically present in the US?

Thank you,

epicx


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## twostep (Apr 3, 2008)

You get paid "in the US" so to say for services rendered.


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## scubakevin (Jun 22, 2011)

There is no visa required if you are working outside of the US for an american company, the issue you need to work out is HOW they will pay you. In the US to open a US bank account you need a Social Security number which on a student visa or umbrella I don't know if you have one.

Many companies as we all know have opted to put support and sales services overseas mostly in india and usually it is done as a Business to business payment and the company overseas is responsible to pay employer taxes etc.

In your case maybe someone back home can check the advantages and disadvantages of setting up a small corporation or small business so where you work now can do the same. It is a tax deduction for the US company and you just need to see how it will affect you there in Romania or Hungary when you head home. 

We do the same here in Mexico, I get a lot of design business from the US, Canada and the UK because or labor costs are quite low and we do have some great designers coming out of university now very creative. 

Good luck with that...


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## Bevdeforges (Nov 16, 2007)

If you are not physically present in the US, you are not "on the payroll" but rather serving as a contractor for the employer. If you are doing the work for them in Romania, then you are subject to Romania's tax laws as a resident there. 

You don't need a visa for the US if you aren't going to be living there. But in the same vein, your employer should not be withholding US taxes that you are not liable for. You'll have to comply with the laws back home as far as whether you need to establish a company in order to bill for your services and what taxes or social insurances you'll need to pay.
Cheers,
Bev


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## epicx (Dec 11, 2011)

All, 

Thank you for your replies!

So just to clarify, I do not need to be eligible to work for a US company if i am rendering the services remotely? If that is the case, how will they pay me? With the same SSN that I had when I was a student (yes i do have a SSN)? 

I am having a hard time understanding how a US company would pay me if I am not legally authorized to work in the US. I can understand being a contractor for the company, but that would mean me invoicing my services to them, right? This would also mean that I have to become a fiscal entity in my home country. 

Again, thank you for bearing with me on this...


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## Bevdeforges (Nov 16, 2007)

epicx said:


> All,
> 
> Thank you for your replies!
> 
> ...


Basically, they should not be using your US SSN at all in paying you while you're resident abroad.

And yes, you will probably need to invoice the company for your services, using a fiscal entity of some sort in your home country.

One thing to be careful of - as a contractor, you will have to bear certain costs of doing business on your own. Stuff like stationery supplies, buying your own computer, ink cartridges, and paying your own taxes and social insurances.

On the employer side, the employer won't have to pay in the employer portion of things like social security or other payroll taxes. 

So you should probably negotiate with your employer for a somewhat higher base salary - or make sure you have a contract that pays you a fee PLUS expenses.
Cheers,
Bev


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## epicx (Dec 11, 2011)

Bevdeforges,

Great response, really apreciate you explaining this to me. I will be negotiating with my employer next week, but not exactly sure what my leverage points would be in asking for a higher base salary. I understand that I will incurr additional costs while working remotely, but I would need some insight as to how the company would save money by paying my services as a contractor and not as an employee. I am just not familiar enough with the NY taxes and fees that an employer pays. 

Any help in this matter would greatly increase my odds of negotiating a successful contract.

Thank you!


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## scubakevin (Jun 22, 2011)

Well the savings for the employer would depend on many factors like what benefits they provide to employees. 

Some examples of Savings

Payroll Taxes State, Federal and in NYC City taxes
Social Security
Insurance Benefits
Vacation Pay

Benefits as an employer would be for example:

Payments to you as a sub contractor or company are 100% deductible from a Federal and state Tax perspective if the company is in NYC you save them city tax as well.

Normally the prime reason for having overseas help is pay lower salaries so I would be cautious on that point since if they have to pay you more to work from your country you might lose the deal. I mean if I had to pay someone in India more than I pay for local in house help thats a deal breaker for me. 

As a company I want to save money and pay less taxes so I farm out only on projects that would cost me more here to hire someone Cost / Value analysis and I make sure that how I pay offers me some tax advantage so for me its win win.

You need to sell the idea and find out why it is a win win for your employer, he might not tell you the whole story, if you are doing your MBA there ask one of the professors about current tax advantages on these types of deals. I left Manhattan years ago and our corporation was a Delaware Corp for the tax advantages so I can't tell you what is currently happening in NY.


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