Hiring Remote Worker Overseas?

pr0o on 13/01/2024 - 18:51

Hi guys,

If I want to start a business and hire my first employee overseas (who has never been to Australia), and I will be paying them on Paypal or Wise, how do I claim their wages as deduction here? Can I just do that or how does it work?

Thanks!

Financial

Comments

  • Nutrino on 13/01/2024 - 19:15
    +18

    Thank you for contacting Oz Hr services, your call is important to us, please hold the line and a rep will be with you shortly. {BEEEEEP].

  • AustriaBargain on 13/01/2024 - 19:31
    +2

    Will they be a contractor or an actual employee? I'm guessing a contractor…

  • freefall101 on 13/01/2024 - 20:50
    +4

    Hiring an employee overseas sets you up for compliances with Australian law as well as whatever laws for the country they're in. Which usually means setting up an entity in that country to pay local tax requirements while also paying Australian ones.

    There's a reason it's hard, otherwise every second startup would be "a thing that already exists but we farm all the work out overseas".

    Also just google it, but if you haven't started the business yet then "hiring overseas employees while complying with tax law in both countries" is about step #8,283 of running a business.

      • freefall101 on 13/01/2024 - 22:27
        +6

        You said employee.

        If you hire a contractor make sure not to mix those two up if the ATO ever call asking about your employees. A sham contractor arrangement, even if an overseas one, is going to hurt financially.

        Plus your accountant isn’t an employment lawyer. You can expense it, sure, it’s a business cost. But you still need to meet appropriate laws. If you’re hiring someone to create a logo the sure, do whatever. But if it’s an ongoing employee relationship I’d get your contracts properly in order and make sure you understand the local laws of the “contractor”. And hope they don’t sell all your IP.

        • Gunnar on 14/01/2024 - 19:14
          +2

          I can see this ending with “But Fair Work Commission, my accountant advised me that my decisions were complicit with all relevant industrial relations legislation”

  • boomramada on 13/01/2024 - 20:51

    I want to start a busines

    Get an accountant first, that might help.

    • pr0o on 13/01/2024 - 20:51
      -3

      He did not pick up the call so I asked Ozbargain

      • boomramada on 13/01/2024 - 20:58
        -2

        Try this number first thing on Monday, 13 72 26

        • iforgotmysocks on 14/01/2024 - 07:34

          Also try 13 30 32.

          They’ll do the lot, home or office on the spot

  • AndyC1 on 13/01/2024 - 21:54

    The ATO allows you you to deduct legal deductions as per the ATO regulations, which are above the amount we are trying to save by being OZb menbers, so hold your small member while you hold IT while the system transfers you to the ATO support area.

  • Fayble1212 on 13/01/2024 - 23:11

    hire my first employee overseas

    then:

    I can hire them as a contractor

    First thing is first, obtain definitions of both parties, they are extremely different, laws are different, tax obligations are different.

  • ThithLord on 15/01/2024 - 10:13

    Hire Australians, in Australia, you leech.

    • pr0o on 15/01/2024 - 19:50
      -1

      nah, they suk

      • ThithLord on 16/01/2024 - 09:30

        "Paying a fair wage sucks" leech

        • pr0o on 16/01/2024 - 18:29

          cry centerlink baby

          • ThithLord on 17/01/2024 - 09:25

            @pr0o: Yo, you're the one who can't afford to run a business but is trying to, anyway

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