<div dir="ltr">Well,<br><br> I can't really say anything about the US, but in Israel off shore workers can only be outsourced, or work through<br>a sub-company methodology. The reasons for these, at least in Israel, are fairly simple: The employer in Israel pays a monthly tax for each worker he employs. Well, it's not really a tax, more like social benefits - which the employer has to pay according to the law. Now, imagine that I would employ a worker located in the UK, I would be required to pay anything between 400$ to 1200$ monthly for social benefits and then some other stuff too. However, as the worker is not in Israel, he won't enjoy these benifits - in other words - stupid law that makes it impossible to have off-shored employees.<br>
<br> The best track to take would be to establish a seperate business unit, to act as a remote outsourced business unit. In this manner, everything is clean and clear and on the table. If you care talking about the UK, then the simplest way would be for you to establish a local presence in the UK, and have that local presence render services to the US company. The guy in the UK is employed by the UK presence - and everybody is happy.<br>
<br>Nir <br><br><div class="gmail_quote">On Wed, Jan 7, 2009 at 6:41 PM, Alex Balashov <span dir="ltr"><<a href="mailto:abalashov@evaristesys.com">abalashov@evaristesys.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
Hi everyone,<br>
<br>
I have what must be an incredibly, astoundingly stupid question, but<br>
I've never really dealt with it before and it's come up.<br>
<br>
For those of you based in the US, how do you pay employees outside the<br>
country? And, I do mean employees, not contractors, staffing firms,<br>
body shops, consultants, or any of the stuff that comes with offshoring.<br>
<br>
In this case, the question is paying someone in Britain, so asking<br>
people who have Third World offshoring experience might be a little<br>
misplaced and that is why I am asking here instead.<br>
<br>
What's the best practice to pay a remote employee in the UK a paycheck?<br>
Paypal aside, how's it done? I am assuming bank wire. How does that<br>
interact with withholding and taxes? Obviously, I can't withhold UK<br>
taxes for them and remand them to its government, so are they<br>
responsible for doing it themselves like 1099ers in the US? What do I<br>
need to tell them? Any non-obvious gotchas?<br>
<br>
Thanks!<br>
<br>
--<br>
Alex Balashov<br>
Evariste Systems<br>
Web : <a href="http://www.evaristesys.com/" target="_blank">http://www.evaristesys.com/</a><br>
Tel : (+1) (678) 954-0670<br>
Direct : (+1) (678) 954-0671<br>
Mobile : (+1) (678) 237-1775<br>
<br>
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