Landing a legitimate home-based job can be tough, especially for a foreign employer. But being someone that works from home for a foreign employer, I can say is a dream come true with a lot of perks and flexibility.
Can I work from home for a foreign employer? Yes, you definitely can. As long as you deliver the requested results or you are available in certain time determined by your employer, you can work from home for a foreigner employer and get involved in various projects or tasks. Your client must be sure that you’ll be there for him when fire hits the ceiling.
In most of the cases, the salary is a bit little more than the one in your home country, and slightly less if you come from the same country as your employer. Basically, you have to ask for an hourly rate that is compelling and will interest your client to go outsourcing, and at the same time, hour rate that is interesting enough, to keep you working for the same client for a longer period of time.
Another important thing is that you should have proper knowledge of the tax policy of your country, including the local taxes and the taxes that are on the country level. Since the terms and conditions are unique for every country, understanding them will help you in avoiding tax troubles.
Home based jobs can be beneficial for both the employee and employer. Remote-working employees benefit from the telecommuting since the time wasted for commuting is turned into productive work time. Also working from home can boost your work engagement and satisfaction.
Employers can benefit from the large pool of talents available to them, that is not only from the confinements of their own country. Employers, using certain work arrangements can attract and retain people who for various reasons can’t work from 9-5 at a fixed workplace.
Types of employment by the foreign employer
If the foreign employer registered a company in your home country, you as a home-based employee, can expect having a regular employment with all social benefits, that are protected by your country’s laws.
The salary usually is around the local average salary, because of the legal expenses, although the foreign employers are offering some incentives, and encouragement, so they outperform the local employers for sure.
They can use their local partner to employ you, if they have agreed upon some mutual policies or contacts, in which case all the above will be same for the employee.
If the foreign employer hasn’t registered a company in your country, probably you won’t sign formal contact with them, so they can be avoiding some taxes that can be a result of your contract. Usually, you will be connected with your foreign employer, using a freelance sites. Although you should not expect social benefits, you will receive a lot higher salary (and if you choose to, you can avoid paying taxes that are result of your income).
In the case of avoiding income taxes, make plan by putting some of your income to some savings account or look at some options of ensuring a plan for pension for yourself.
If your home country is an undeveloped or transitioning country, your rates will be much higher than what you’ll get in your local companies, but way less from the employers’ local rates. But, if your home country is a developed country, your starting salary can be expected to be much closer to the employers’ hourly rates. On the other hand, if you are already considered as an expert in your field, there is no rate limit into keeping you happy and willing.
Another option is if the foreign employer binds you with a legal contract as a foreign citizen. This formal employment contract is honoring the local governing laws of the employer, although these types of contracts do not get taxed as much, and you are not fully protected by their local employment laws since you lack citizenship.
With these types of contracts, the employer has less legal expenses, but still considerable, which might affect your pay rates. You can benefit a lot from these kinds of contacts since they are internationally recognized by court laws or other future foreign employers.
The downside is that all disputes between you and your employer, including breach of contract or similar, will be handled on your employer’s turf by their governing courts.
Keep in mind that, whatever type of employment you choose, if you decide to hide your additional income, while you are already employed in your home country or you benefit from the social benefits for the unemployed, you might be caught, in which case you will be stripped of the money you’ve made, and pay additional penalties.
Types of payments
If you are using the employment services from a freelance site, you need to use their payment option. Their services include non-resident banking account opened in one of their partnering banks for you, after signing their terms of service. Withdrawal of the funds is usually through a credit card, or by using another method of transferring the money of your own choice.
If the employers are not using the services from the freelance sites, they may have other ways of providing the money for your salary, while having less expenses.
This most likely will include opening a bank account for non-residents, and you can draw your funds using the bank’s various options. Another option is if they have an offshore bank account, to send the money, with intention to avoid additional taxes.
The most expensive way of transferring the money is through direct money transferring, which may take weeks of processing the transfers until receiving of your salary.
Can I work from home for a US employer?
If you are not physically working in the US than you don’t need a work visa. Since you are not a citizen of the US or working there, you don’t have to file any forms or pay US taxes.
You can apply for jobs within US companies with no restrictions, but all interviews have to be either online or by phone unless you have a US visa and can visit the company in their offices for the interview.
If you possess the skill set and experience they need, the employer can hire you as a remote worker, especially if you have a compelling hour rate and flexible time. Then you have to find the best way to get paid, and at the same time follow the rules for employment in your home country.
Independent contractor
Becoming an independent contractor or self-employed means that you will be getting invoices from the US employer as your client with whom you have signed a contract, along with taking care of your own tax reports and filing them.
Remote Employee
If the US employer wants to hire you as a remote employee, it gets easier for you, but more complex for them. Since you are not a citizen of the US and don’t have tax ID number they can’t put you in their payroll. This situation might be a problem with the IRS, asking why there isn’t income tax withheld. This means that the US employer has to find a way to keep you employed in your own country.
One option is using a third party or GEO (Global Employment Organization) service, to which your employer will transfer your salary so that they can take care of the taxes for both of you and your employer. This company will become your employer and this option will give you the benefits of being covered by the local insurance, pension plans, and other social benefits, while your US employer will continue managing your remote work.
What are the best home-based jobs?
Home-based jobs offer a lot of flexibility and the perk of having a short commute time from your comfy couch to your workplace. Here is a list of home-based jobs, that can have more than decent income.
- Virtual assistant
- Medical transcriptionist / Coder
- Translating services
- Developer (Android, iOS, Web, etc.)
- Call center representative
- Tech support specialist
- Travel agent
- Teacher
- Writer / Editor
- Manager of social media
- Graphic designer
- Website tester
Can I work online with having a tourist visa?
There is a new popular trend in working around the world, by living as a digital nomad. Digital nomads are people who are working online, and their work doesn’t require to be in one physical place, so they can be working either home or from some bar on the beach.
Digital nomads are usually freelancers, that are registered in their own countries for taxes, so technically they aren’t working in the countries they are living for some period of time.
It is a common practice that, as long as they stay in the country for the certain legal time, and they do not work for some local company than the digital nomads can work online with having an only tourist visa.