Things To Know Before Hiring Internationally

Opening an overseas branch is a worthy investment for many companies that conduct business outside the US.  It provides that company with a presence in the respective location but it is an expensive investment. 

With the emergence of remote work, many companies now benefit from establishing an overseas presence without the expense of leasing office space, purchasing equipment and other office-related expenses.. 

However, hiring international staff for remote positions is a bit more complicated than you might think.

In the following article, we’ll spotlight some of the important time and cost saving factors to consider before starting your international remote employee search. 

Comply with International Tax and Labor Laws

Since potential remote employees are overseas and are not United States citizens, they are not bound to the same US tax laws as your domestic staff.  So your company may not be responsible for Social Security taxes or Medicare contributions for any non-US citizen employee.  Instead of filling out the standard W-2, 1099-MISC or 1099-NEC forms, your overseas team member needs to complete a W-8 BEN form to confirm US tax exemption.  

However, your new global employee is still subject to their own country’s tax rules and regulations.  More importantly, your company is responsible for abiding by these same laws. 

Taking time to research the respective employee and employer tax rules ensures that your company is in compliance with these laws and helps avoid any costly fines or penalties.  You can also rely on a third-party payroll service provider that specializes in international cases to oversee this specific employee’s payment.

In addition to observing all respective tax laws, your company is required to adhere to the respective country’s labor laws, too.  Since US labor laws may not apply, your standard employment agreement is irrelevant for international employees. 

Before your company begins interviewing international candidates, it’s best to research the individual country’s specific labor laws.  Not only does this help you create a document that reflects the various laws, it also helps your hiring manager better answer questions about compensation, paid time off policies, maternity leave policies, medical benefits, and additional entitlements. 

Use Culture To Craft an Appropriate Remote Work Policy 

Much like a domestic employment agreement isn’t applicable to most overseas hires, the same conditions apply to your existing remote work policy.

Different countries have different cultures.  And your company’s remote work rules may clash with these cultural differences.  For example, your domestic remote work policy may offer two daily 15 minutes breaks and a 30-minute lunch.  Yet, other cultures may observe longer breaks and lunch hours.  Some international employees may require a remote work policy that offers adequate time to observe their daily and seasonal religious obligations.

To avoid any unintentional misunderstandings, it’s best to fine-tune your international remote work policy to conform to a country’s culture. 

Align Domestic and International Schedules 

Another factor to consider when planning for your overseas employee is their schedule.  After all, they’re operating in a different time zone than your domestic office or branch.  To ensure that they have support from your US office, some of your employees' existing schedules may need to be revised. 

Prior to hiring your new international remote member, take some time to evaluate the domestic support needs.  Confer with respective department leadership to identify the domestic employees who will most closely work with your international team member.  And discuss how to best adjust their schedule to correspond with the time difference. 

Take Steps To Safeguard Your Data 

Risks of security breaches and data corruption are a few of the downsides for any remote work position.  Unfortunately, these risks are increased with international remote opportunities if the proper steps are not taken. 

To safeguard your company’s data, establish a secure network so your domestic and international staff can safely and securely access and transfer information.  Updating your company’s privacy notices can also help all staff members and clients adhere to the proper policies for data protection. 

Conclusion

Hiring new international staff for remote opportunities comes with its own set of unique considerations and complications.  In spite of these differences, the benefits of having a remote employee or team in a country where your company has interests outweigh these complexities. 

With careful research, planning and developing on new processes and policies, you’ll enjoy a more rewarding international employee hiring process. 

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