[sboselli]

I currently work remotely for a NY based company, from South America.

AFAIK, what makes it possible is that we are hired as freelancers/consultants/contractors under what I understand is a pretty standard "Work for Hire" contract.

For the tax side of things, the company needs remote workers to sign a W-8BEN form (W-9 if the remote worker is a US citizen abroad), which states that the worker takes care by himself of taxes in his own Country.

Hope that helps.

[codegeek]

Pretty much this. I also have been hiring remote (outside US) for a US business and we do a contract with them signing a W-8BEN form. I did a lot of research and this is what my CPA recommended.

So technically/legally they are not your employees in the same way they will be if they were working inside the United States. In fact, my CPA calls them on our tax forms as "overseas contractors".