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

Question

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?

Answer

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
http://peo.uk.com/contact/
http://www.linkedin.com/in/ianmcaleese

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

Gemma
@ExportExpertUK
info@export-expert.co.uk
www.export-expert.co.uk

Answer

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.

Regards,

Steve Curtis
Curtis Law LLC (Chicago)

Answer

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.

Regards
Chizzy

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