We are seeing a big shift in the way that our clients are recruiting these days and many of them are looking for remote workers to join their development teams, you may be wondering how they are able to do this.. Below we've included the 3 main ways that a company can hire you remotely:
Option 1: As an employee
If the company that you are looking to work for has a legal entity or a local branch registered in your country of residence, they will hire you directly as an employee. This employment type is identical to being hired on-site, only that the location of work will not be specified. The company will be responsible for paying taxes and social security in your country of residence and you will receive your paycheck as usual. This option is only available if the company has a legal entity or local branch registered, so check this before you reach a potential offer stage.
If the company does not have a legal entity or local branch registered, there are two valid options. These are:
Option 2: As an employee through a third party (EOR)
Companies can use a third party to employ you across borders. The third party company (typically a payroll company/contract management company) will act as an Employer of Record (EOR) and sign a local employment contract with you on behalf of the company. The EOR will then take care of all local tax and social contributions on the company’s behalf. As an employee, you will benefit from local employment laws while working for an international company but there will be a third party directly responsible for your employment contract, acting as a middleman. A thing to note here is that these payroll companies will charge the company for their services, so it might influence the final salary package that the company can offer.
Option 3: As a contractor (B2B)
Companies can hire you as a long-term contractor on a B2B agreement working for them across borders. Since you are in a different country and need to pay taxes to your local government, you need to set up your own business (if you don’t have one already from previous freelancing) through which you can pay taxes and social security. For this type of contract, you normally agree with the company on a lump sum payment each month and then you invoice the company directly. Then you take care of taxes and social benefits yourself. This is by far the easiest way to get employed remotely, but it requires a bit more work on your end related to accounting and reporting.