Employing US citizens to work in the US for a UK based company

Question posted by Dan Myers GCGI Eng Tech MInstRE

Is it possible to hire US citizens to work for a UK based Company? How would they be paid on the pay roll and what are the implications?

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Gemma Price, on behalf of @GemmaPriceUK in W13.

Hi Dan

Welcome to Open to Export!

I would recommend you speak with Ian Mcaleese of Orbis HR:

Orbis HR
T: +44 (0) 1274 921949
E: employeasily@orbishr.com

Ian is an expert in international HR & taxation and will be able to provide you with answers, guidance & solutions.

I hope this helps and good luck!

Kind regards


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Stephen Curtis, on behalf of Curtis Law LLC in Chicago, Illinois.

Dan: It's certainly possible for a UK company to hire US employees. There are several US payroll companies that handle this type of thing but it raises legal and tax issues, the most important of which is that you probably will be subject to US tax and business registration by doing so. For this and other reasons most companies wishing to do this do so through a US subsidiary.


Steve Curtis
Curtis Law LLC (Chicago)

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Uche Akali, on behalf of Hallmark Solicitors in HU1.

Hello Dan,
In addition to what Steve mentioned above, US citizens /residents are usually taxed on their worldwide income no matter where they live or salary is being paid from. You may need to set up a company in the US.
However if this question relates to your previous query my advice would be to weigh your options very carefully by considering the long term and short term goals of the company’s activities in the US. It may be more cost effective for you to send staff whenever the need arises.


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Stephen Curtis, on behalf of Curtis Law LLC in Chicago, Illinois.


One point of clarification - I had assumed in my response that you meant employing US citizens to work IN THE US. I would underscore Chizzy's point that deciding to set up in the US is not something to be done without careful thought, because there's a lot more involved than just forming a US entity.

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Tim Burgess, on behalf of Contractor Taxation Limited in EC1N.

Hi Dan,
Sorry if this answer is too late for you, but you can also enlist the services of a PEO (Professional Employer Organization) in the USA for this. The PEO will "employ" the person on behalf of the UK company, they will invoice the UK company every pay run, process payroll for the employee, deduct all relevant state and federal taxes, pay the employee and supply payslips.
Going this path means you don't have to setup a US company. Nor do you have to deal with US tax or business registration. The PEO handles everything on the American side.
Hope this information is helpful.

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