Remote Job in US with a Finland RP

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FinlandGirl
Posts: 484
Joined: Sat Nov 09, 2019 10:43 am

Re: Remote Job in US with a Finland RP

Post by FinlandGirl » Fri Oct 02, 2020 6:24 am

Maaria wrote:
Fri Oct 02, 2020 2:03 am
FinlandGirl wrote:
Fri Oct 02, 2020 12:39 am
betelgeuse wrote:
Thu Oct 01, 2020 4:21 pm


There’s the fallback of paying accountants or services like Ukko.
This won't help with the IRS side if the "job" is an employment.
He has to deal with IRS only, in other words, pay tax in the US if he is a US tax resident.
Wrong.

US citizens have to pay US taxes on their income even when living elsewhere.

In practice money might only have to be paid in one country, but paperwork has to be done in both countries even when the employment is purely Finnish.
Employment in the US while living in Finland makes sorting out taxes and social security an even bigger mess.



Re: Remote Job in US with a Finland RP

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betelgeuse
Posts: 3621
Joined: Thu Aug 29, 2013 1:24 am

Re: Remote Job in US with a Finland RP

Post by betelgeuse » Fri Oct 02, 2020 10:32 am

FinlandGirl wrote:
Fri Oct 02, 2020 6:24 am
Maaria wrote:
Fri Oct 02, 2020 2:03 am
FinlandGirl wrote:
Fri Oct 02, 2020 12:39 am


This won't help with the IRS side if the "job" is an employment.
He has to deal with IRS only, in other words, pay tax in the US if he is a US tax resident.
Wrong.

US citizens have to pay US taxes on their income even when living elsewhere.

In practice money might only have to be paid in one country, but paperwork has to be done in both countries even when the employment is purely Finnish.
Employment in the US while living in Finland makes sorting out taxes and social security an even bigger mess.
Why didn’t you read the next sentence of Maaria’s from the one you quoted? If the OP was a US citizen, they would already have been filing US taxes all the time so it wouldn’t really be anything new.

Maaria
Posts: 107
Joined: Fri Jul 12, 2019 3:49 am

Re: Remote Job in US with a Finland RP

Post by Maaria » Fri Oct 02, 2020 11:39 am

betelgeuse wrote:
Fri Oct 02, 2020 10:32 am
FinlandGirl wrote:
Fri Oct 02, 2020 6:24 am
Maaria wrote:
Fri Oct 02, 2020 2:03 am


He has to deal with IRS only, in other words, pay tax in the US if he is a US tax resident.
Wrong.

US citizens have to pay US taxes on their income even when living elsewhere.

In practice money might only have to be paid in one country, but paperwork has to be done in both countries even when the employment is purely Finnish.
Employment in the US while living in Finland makes sorting out taxes and social security an even bigger mess.
Why didn’t you read the next sentence of Maaria’s from the one you quoted? If the OP was a US citizen, they would already have been filing US taxes all the time so it wouldn’t really be anything new.
Thank you Betelgeuse.

I explained what it means to be a US tax resident. It's not like mist other countries in the world simple 186 physical residence requirement in the US. Anyone with a US citizenship or permanent residence status regardless of where they are living is considered US tax resident.

What I have said in that post is from my own experience. I have a few US clients and my business is based in Finland. I am a business consultant for my US business clients. I manage their companies and even help them do their tax return.

US tax has many options to get breaks or get credits which is generous than many other countries.

As for OP, if he is not a US tax resident, it's not complicated at all. I am doing it for myself. If OP needs help and guidance, I would be glad to help. Not so complicated and not "messy". He has more than one option. One can actually make more money if his source of income is from US but he doesn't live there.

mdn
Posts: 77
Joined: Thu Dec 07, 2006 9:58 am
Location: Tampere, Finland

Re: Remote Job in US with a Finland RP

Post by mdn » Mon Oct 19, 2020 10:27 am

helloespoo wrote:
Thu Oct 01, 2020 6:37 pm
Yes, I totally get it. I am just wondering the taxes shouldn't increase too high as my projected salary would be somewhere between 15 to 20%.
Sorry are you joking? Or do you missing something, like for example YEL insurance (which is 24.1% of gross income)?
Even for US only customer (without VAT) "taxes" will be about 40-45%.

betelgeuse
Posts: 3621
Joined: Thu Aug 29, 2013 1:24 am

Re: Remote Job in US with a Finland RP

Post by betelgeuse » Mon Oct 19, 2020 10:54 am

mdn wrote:
Mon Oct 19, 2020 10:27 am
helloespoo wrote:
Thu Oct 01, 2020 6:37 pm
Yes, I totally get it. I am just wondering the taxes shouldn't increase too high as my projected salary would be somewhere between 15 to 20%.
Sorry are you joking? Or do you missing something, like for example YEL insurance (which is 24.1% of gross income)?
Even for US only customer (without VAT) "taxes" will be about 40-45%.
Mandatory social security payments like YEL aren’t considered taxes. YEL contributions aren’t calculated from gross income.

mdn
Posts: 77
Joined: Thu Dec 07, 2006 9:58 am
Location: Tampere, Finland

Re: Remote Job in US with a Finland RP

Post by mdn » Mon Oct 19, 2020 11:09 am

Mandatory social security payments like YEL aren’t considered taxes.
I do not think it matters for the topic starter if he does not receive those money anyway.

An additional 20-25% "mandatory social security payments" (totally unexpected before) definitely would not make him happy, and might affect the decision.
YEL contributions aren’t calculated from gross income.
"Your confirmed income should correspond to the wage that would be paid to an equally skilled external professional for doing the same work"
For 15-20% taxation it might be even more.


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