How to work remotely for a US company from abroad | Rippling (2024)

The gig economy is in full blossom. In the US alone, there will be 86.5 million freelancers by 2027. This number will grow by an additional 3.6 million in 2028, accounting for well over half of the entire US workforce. In part because of the pandemic, remote workers now have access to a wider range of career opportunities. But what if you’re a non-US citizen who wants to work for a US company remotely?

Is working remotely abroad for a US company possible for non-US citizens?

If you’re a non-US citizen, yes: You can work abroad for an American company. However, you need to make sure you’re correctly classified—either as an employee or contractor. If you’re misclassified, both you and the hiring company face a very real risk of legal consequences and possible financial penalties.

How to work remotely for a US company—a step-by-step guide

Let’s take a deeper dive into what you need to do to work legally for an American company—either as a contractor or employee.

Note: The following information is for informational purposes only and isn’t intended to be legal advice.

1. Make sure you’re classified correctly

If working remotely is high on your priority list, then before applying for your dream job check if they’re looking for a full-time employee or a contractor—this is usually included in the job description. How you’re classified will impact your ability to work remotely.

So, how do these two worker classification options differ?

• An independent contractor is an individual or a business that performs services for clients under a written agreement in exchange for a fee. Independent contractors typically control when and how they work. The client is simply paying for the service or end product. Independent contractors often have multiple clients.
• An employee, on the other hand, is an individual who typically works exclusively for one organization. The employer has control over when and how the employee works.

If you’re classified as an independent contractor, then you’re free to choose where you work. However, if you’re classified as an employee, you’ll have to ask your employer for permission to work remotely. In both cases, you’ll need to abide by local labor laws and check if you require a work permit.

What happens if you’re an employee and would like to work remotely? You can ask your employer to reclassify you as an independent contractor but keep in mind that your working relationship also has to change. If the company continues treating you like an employee, they’ll be at risk of misclassification. In the US alone, up to 30% of employers have misclassified at least one worker.

To learn more about this, take a look at our worker classification analyzer.

Pro tip: If you own a sole proprietorship, but the job ad specifies an employment contract only, reach out to the hiring manager before you apply for the role. Ask them if they’d consider working with an independent contractor. And remember that you’ll have to revisit the responsibilities and working hours to minimize the risk of misclassification.

2. Discuss how you can work as a remote worker

“Remote work” can be interpreted in many different ways. Maybe you’re spending 100% of your time at home, using cafes and co-working spaces while you backpack around Europe, or working out of your camper. Whatever you choose, if you’re planning on doing your remote job in a foreign country, you need to inform your employer.

Some foreign countries forbid travelers from working on tourist visas. If you fail to get a right-to-work permit, either you (if you’re an independent contractor) or the hiring company (if you’re an employee) can be fined or banned from the market. So, while you don’t have to present your future employer with a detailed itinerary of your travels, they must be aware if you’re on the move.

Speaking of formalities, we’ll discuss the types of visas, permits, and other legal obligations next…

3. Navigate taxes, permits, and other paperwork

Agreed on where you’ll be working from and how you’ll be classified? Perfect, let’s move on to how to handle payroll and other formal obligations.

In a nutshell, if you’re an employee, the employer will handle most of the paperwork on your behalf. If you’re an independent contractor, the client won’t be legally required (or able) to take as much off your plate. Let’s dive into this below.

Taxes and statutory benefits

When it comes to non-US citizens working remotely abroad for an American company, both employees and independent contractors should have their taxes and statutory benefits contributions paid in their country of residence. If you’re an employee, you’ll need to fill out a W-8BEN form—a tax declaration document your employer will submit to the IRS. If you’re an independent contractor and operate a sole proprietorship, you’ll receive a slightly different document: a W-8BEN-E. Both of these documents help the hiring/contracting company prove that you aren’t eligible for US taxes.

If you work as an employee, tax laws require your employer to pay your tax and social security deductions for you, in your country. If you’re a contractor, tax laws require you to pay them yourself. Both of these processes will be fairly easy if you’re mostly working from home, as it’ll be clear where you’re based.

But what if you’re a digital nomad? Your “country of residence” refers to where you’re registered as a permanent resident. For example, where you own an apartment or where you’ve lived and settled taxes before becoming a working traveler. If you have a residence permit in multiple countries, then it’s worth checking tax laws to see if you are subject to double taxation.

Right-to-work entitlements

Before you travel from one country to another, it’s important to check how long you can stay without violating immigration laws. It’s also important to make sure you enter the country on the right visa or right-to-work title.

Many countries let travelers work remotely for anywhere between three to six months before they need to legalize their stay. Here’s what to do if you want to remain in the same country for longer and the factors to consider.

Say you have an Italian passport and want to work from Denmark for more than 90 days within six consecutive months. Since both of these countries are in the European Union, you have to apply for a residence permit. As a citizen of an EU member state, you’ll be granted a right-to-work permit upon request. You’ll also start paying your income taxes in Denmark.
Now, if the country you’re from and the one you want to stay in don’t have any special treaties, you might need to apply for a visa. The good news is that, as of early 2023, as many as 49 countries offer digital nomad visas.