Employment and Hiring
Employment and Hiring
Employing individuals internationally has many important considerations beyond programmatic duties. Purdue University typically utilizes one of the following options when individuals need to work abroad. Note, not all of the options are available in each circumstance. By filling out the Global Questionnaire, Global Services or a member of the GRC will assist you in setting up your project compliantly, while still meeting your project needs.
OPTION 1: UTILIZE AN IN COUNTRY PARTNER
If it is not a compliant arrangement to employ an individual directly by Purdue University, a simple solution is it to subcontract to an in country partner so that the partner is the employer of record. The in country partner could be another university that is registered in that foreign country or a local entity. Since they are registered in that country they will not face the same challenges and concerns Purdue would in employing an individual abroad. Therefore, the administrative, taxation and reporting requirements fall on the in country partner.
OPTION 2: STRUCTURE TRAVEL IN A COMPLIANT WAY
Long term travel of a US person can change the individual’s’ residency to the foreign country and can therefore create unintended tax obligations for Purdue as their employer. If long term travel of a US person is the concern, travel can be structured in a way to limit the amount of time in country.
OPTION 3: UTILIZE INFRASTRUCTURE SET UP IN COUNTRY IF REGISTERED
If Purdue or one of its affiliates is a registered entity in the country of your project, payroll can be processed through an in country service provider. When Purdue is registered in a foreign country, we are able to withhold and remit the proper employment taxes needed to employ a local national or expat long term.
OPTION 4: UTILIZE A PROFESSIONAL EMPLOYMENT ORGANIZATION
By utilizing a professional employment organization, that provider becomes the employer of record for the individual and is able to withhold and remit the appropriate local taxes. Velocity Global is Purdue’s preferred partner for International Employer of Record services and more information can be found here.
OPTION 5: HIRE AN INDEPENDENT CONTRACTOR
This is not an option in all cases as the duties and level of oversight of the contractor need to be reflective of an independent contract relationship and not as an employee. The independent contractor regulations are country specific but include considerations such as the following found on Purdue’s Checklist for Determining Worker Classification