What common legal or tax compliance issue often causes US-based remote employers to prohibit working internationally?
Foreign jurisdictions compliance issues
The expansion of remote work presents challenges when employers based in one jurisdiction, such as the United States, hire individuals to work from locations abroad. A major hurdle identified is that many US-based remote employers explicitly prohibit international work due to significant legal or tax compliance issues that arise when operating across foreign jurisdictions. Employers must navigate the complexities of foreign tax codes, labor laws, and reporting requirements, which can be administratively burdensome or pose unacceptable risk. To overcome this barrier, job seekers might need to negotiate a change in employment status, moving from traditional W2 employment to 1099 contractor status, which shifts the compliance burden primarily to the individual worker.
