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by codegeek 1376 days ago
Yep. When I am hiring remote in US (out of state), we put a condition in the contract that you will notify us if you are planning to move from your home state because we may have to establish tax residency/nexus in that state as an employer. If an employee moves somewhere else and lies about it, it can put both the employee and employer at serious risk of violating compliance/HR/tax laws. For example, there is something called Workers Compensation that the employer has to buy. If an employee gets injured while working, workers comp. may matter based on the location of where they were at the time and can get denied if there are discrepancies. As an employer, we absolutely cannot risk having employees working from anywhere when they are supposed to work from specific locations only. No one likes these stupid laws but we have to follow it as an employer.

It is a little bit easier for international hires if they are just doing contract but even then things like W8-BEN etc come into play and dealing with IRS is always tricky and risky.

Honestly, if we are going fully remote (anywhere,anytime), we almost need a multi-national agreement/treaty so that employers are not left trying to deal with BS stuff. And no, services like Deel/remote.com are not enough.

2 comments

In the US there are already many states with population centers that cross state boundaries; those states often have negotiated with each other to solve some or most of these issues.

So if you live in Wisconsin but drive to Minneapolis for work each day, they know how to handle it.

We need more of those and closer to pairings for all states to make true "work from anywhere in the US" possible. I doubt it'll happen, because the states won't agree on the baseline level.

It really seems like what we’re really discovering is that employment law is completely insane and ridiculously out of days.
globalization, cheap easy access to air travel, and the internet are breaking down the systems that were working fine for countless years.

It's not limited to employment, either. Create a SaaS or other internet-based business and try to serve customers outside your nation. Or even outside the border of your state/territory/province. Entire services such as Paddle exist just to deal with this. But I suspect most people are trying to fly under the radar here using regular Stripe, etc. and not dealing with any of it, just like digital nomads do.