ichiban_mafukaro t1_j5pinnh wrote
Reply to comment by KeystrokeCowboy in TikTok reportedly threatened to terminate remote employees who don't live near their assigned office location by Sorin61
The company withholds taxes out of Bob’s pay, unless Bob is a private contractor, so the company is paying taxes on behalf of Bob, which then Bob collects a return on, as well as other benefits. Unless Bob tells the company he lives in Ecuador, the company is withholding incorrect taxes and therefore the company is liable, not to mention companies need to disclose where they operate with the state, in some cases down to the county, which has tax implications. And that’s only income tax, not to mention corporate tax, sales tax, etc.
Also pay has historically been calculated based on where a person resides because tax is calculated based on where you work and reside, and there are tax benefits to live and work in certain places versus others. For example, if you work in NY and live in NJ, you get taxed by the city and state where your company operates and you get taxed by the state where you live, that’s 3 tax deductions between 2 states.
So all in all it does matter on multiple levels where you choose to live and work.
KeystrokeCowboy t1_j5plpke wrote
Your entire first paragraph is on the employee. They are liable for back taxes when it is proved they actually had income at their actual residence. Show me evidence a company has had to pay back taxes in this situation when an employee commits tax fraud.
ichiban_mafukaro t1_j5pshmm wrote
Quick google search resulted in:
Tax implications of employee working abroad
It’s not only about back taxes. Without Bob’s declaration of working abroad, the company may run into problems in regards to international taxation, unless Bob hides the fact he’s in South America or wherever. Maybe the company isn’t liable for Bob’s unpaid taxes but the company itself has obligations in regards to collect the proper taxes in regards to wherever Bob decides to reside abroad. But if Bob is an independent contractor, then it’s all on him, but as an employee, his residence very much impacts the company. Again we’re talking about Bob who says he lives in Los Angeles but actually lives in Ecuador.
KeystrokeCowboy t1_j5psu7a wrote
We dont really have to keep going in circles. When the employer is knowledgeable about it and hires people in other countries, its clear. When the employee changes his residency and doesn't tell anyone, thats not the companys fault.
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