My OH wants to continue to work for her US-based employer ...

[KiwiHopeful]

Hello All!

Sorry to have been largely absent, but things have been crazy here the past two weeks! First, a quick update, then a question:

The house sale is proceeding as they usually do ... bump, bump, bump! But, the closing is still set for July 9th, so that means we will most likely be on a plane for Chch the first week in August!

Now, the question: My wife's plan all along has been to continue to work for her current US-based employer. However, her HR department is having trouble figuring out how to do it. Does anyone know where I can get an answer to this question: Can she work as a contract employee for them while living in NZ? Or, if not, can she work as a contract employee for an Australian company while living in NZ?

Just a nudge in the right direction would be helpful!

(I guess the third route, which I've pushed from the start, would be to simply be an independent contractor, then she works for herself, which I figure would be no problem at all.)

Thanks all and SEE YOU SOON!

[Taffy]

I would think that working as an independent business would be your best option. Otherwise I'm pretty sure you'll be liable for both US and NZ income tax.

Obviously I don't really know how the US tax system works, but an international transaction from one business to another would seem the easiest route to me.

[MotherBear]

Is it just the taxation issue they are concerned about? I'm sure it's possible to work for a company in one country whilst living in another as I've heard of it many times before, but there is such a thing as double-taxation where, as Taffy says, you can be stung for tax in the country you reside in plus the country you have just left. With the UK I believe there's a form you can fill in which lets the tax people know your situation so they shouldn't be looking for any tax from you. It's a way of applying for exemption from paying tax in that country.

[MotherBear]

I really have no idea if this will be of any use to you KH. It's about outsourcing and offshore, so might be applicable to your wife's situation. I haven't read much of it but there were bits and pieces that sounded like they had similarities.

Your wife should be able to work at whatever she likes because you are the principal applicant in the PR process and she is your spouse so should be free from any constraints that PR imposes on you. I'm assuming because she's got PR, she won't need a WP, therefore, what's to stop her from doing what she wants, as long as it's legal? I doubt you'd find anything on the NZIS' site relating to this issue because, if she's working for an overseas company, NZ won't benefit from her skills and therefore wouldn't be interested.

[KiwiHopeful]

There seem to be two sticky wickets ... 1. The HR person at my wife's company is a pain in the ass and 2. US laws that seem to require an 'office' of some sort for the off shoring to be legal.

It looks like we are going to go the status quo route for 6 months--they'll continue to pay her as though she were sitting in her office--and during that time we will set up my wife with her own LLC (or whatever the equivalent is in NZ) and she will work as an independent consultant--or she will just find a job with a nice Kiwi firm.

(Maybe Macfod can help me out at some point since he's done the entrepreneur thing in NZ!)

Either way, we'll have steady money coming in for the next 6 months which will make everything that much easier.

[Dawn]

Originally Posted by KiwiHopeful

Either way, we'll have steady money coming in for the next 6 months which will make everything that much easier.

Yep, this usually helps a bit doesn't it? Now if only we can manage it......