Receiving payroll from U.S.

22POSTS

6 years ago

Hi all,

I searched for related topics but didn't really find the answer I need. My wife and I are moving full-time at the end of August. Although leaving full-time employment, we have an opportunity to earn some extra revenue from the same employer on a seasonal basis. The challenge is payroll. Since the company does not do business in the DR, we would need to be contracted through an agency (maybe create our own?) so they can process the necessary payroll taxes required in the DR.

My question is have any of you worked remotely as a seasonal/contractor for a US employer? If so, how was the payroll handled?

We don't own property in the US any longer so we won't have a "home" in the states. I am going to have a mail scan service to keep a US address and not miss important documents. However, you can't generally use those addresses for things like a driver's license as it is considered misrepresentation.

Thanks all!
Clint

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planner Dominican Republic Expert

17772POSTS

6 years ago

I am not sure I understand your question. Your "payroll" doesn't get processed here.聽 You can continue to be paid as if in USA and have it deposited to US account and you can either transfer here OR use your bank card at ATM.聽 You only need to report income for income tax not payroll taxes if your income generates outside the DR.

You can register yourself here for taxation - that is the law.聽 And pay income taxes. There is a tax treaty with the USA but I have no idea how that works. You can register yourself as the professionals and self employed do once you have your cedula.

IF required to work via a Dominican company,聽 I can help聽 you with that.

1 member reacted to this post

meangreen88 Member

22POSTS

6 years ago

Thank you for your reply. This was told to us by our HR folks, which didn't seem to make sense to me but I thought I'd see if anyone else had issues. The tax part I'm good with. I program tax software for a living

I think in this case because I would no longer be an employee, but a contractor, I have to be paid through a third party as that's how they do things. I think in that case since they know I'll be in the DR, I would need someone who could process my pay check. But since I am keeping my US citizen status and bank accounts, I agree with you. It shouldn't really matter, but maybe these contract employment agencies have requirements. Not really sure

planner Dominican Republic Expert

17772POSTS

6 years ago

Theyay, and I can help you either way honey!

DM1 Member

19POSTS

6 years ago

Are they paying you as a contractor 1099 or w2? Either way it should not matter as they will withhold taxes (w2) based on you and your responsible for tax returns and not them.

They probably can't process with DR bank account but if you are leaving US account should not be any issue.

meangreen88 Member

22POSTS

6 years ago

Thanks for the info. I believe it will be a W-2 but through one of their agencies. I think there may be some misunderstanding that we will be maintaining US banks.

legs208 Active member

80POSTS

6 years ago

It鈥檚 good you are maintaining a US bank. You said you will not have a home state, so make sure your seasonal employer doesn鈥檛 take out your current State鈥檚 income tax.

I use a large US bank for direct deposit of my pension check. When in the DR I use Banco Popular to make withdrawals. I use them because I can withdraw up to $10,000 pesos per day. Other banks are a lot less. My bank reimburses my account for any AMT charges I occur. I would rather transfer (wire) the money to a bank account but the fees are very high.

Good luck.

meangreen88 Member

22POSTS

6 years ago

Thank you yes. My plan is to either use my US debit card or Xoom, a PayPal company, let's you transfer into a number of Domincan banks and the fee is only about $5. I want to keep mostly only what I need in a Dominican account and the rest in the states.

3 members reacted to this post

JulianTorrez Active member

88POSTS

6 years ago

I haven't been active here for a long time. I've actually been traveling a lot. I do contract accounting job thru Robert Half for different companies around the United States. There is no need to have your payroll processed in the Dominican Republic. If you are a W-2 employee or 1099 contract employee with a company in the United States, you are subject to United States taxes, no matter where you live, as long as you remain a US citizen. You will only be subject to Dominican income taxes if you are employed by a Dominican company. I would suggest you get a mail service in the Miami area. That way you can have a place to get your mail delivered. I have found it time consuming to have mail delivered to me in the Dominican Republic. A mail service will also scan and email important mail messages to you.

1 member reacted to this post

planner Dominican Republic Expert

17772POSTS

6 years ago

#10

I just sent you a private message.

cushion03yeti Active member

27POSTS

last year

#11

so if my payroll is deposIted in a US bank and I work remotedly for a US聽 company while in Monte Plata, I need a work visa still, correct?聽 I have read all the comments but do not see my answer (and that may be on me). Thanks聽

CHRISTOPHER DAVID56 Serial expat

485POSTS

last year

#12

From my understanding yes..

If you live in the DR you are required by DR Immigration law to seek some type of residencey or work VISA to be legally here and work here.

However, I am not a lawyer and only going by what I read and my understanding .

1 member reacted to this post

cushion03yeti Active member

27POSTS

last year

#13

馃憣

cushion03yeti Active member

27POSTS

last year

#14

@CHRISTOPHER DAVID56 I anticipate living in the States聽 and the DR until I gain residency.聽 It is this in between, I will need to figure out. Until then I am in the DR for 30 days and out.聽 Thanks for the reply.

2 members reacted to this post

mitrapito Member

1POSTS

last year

#15

@JulianTorrez are you sure this is the case? reading the law it seems the dominican republic has a territorial tax liability. If you stay more than 180 days within a calendar year seems you are liable to pay ISR (income tax) to the Dominican Republic

Art铆culos 267, 268 y literal f) del art. 272 del C贸digo Tributario.

(PDF)

1 member reacted to this post

om2252001 Active member

42POSTS

last year

#16

@meangreen88

worked remotely for awhile for a US company ,even after retirement, but had a US bank, so direct deposit . If you can have a US bank account this can be a solution.

om2252001 Active member

42POSTS

last year

#17

@meangreen88

no requirements your money gets deposited directly to your US account

philip3 Member

2POSTS

last year

#18

Payment from the United States can be received quickly and easily if the correct steps are followed. Ensuring adherence to tax rules and employing trusted payment platforms are crucial in order to enable seamless international transactions between freelancers and employees.

planner Dominican Republic Expert

17772POSTS

last year

#19

Yes that part is easy.

Reminder that Dominican law is territorial. If your feet are on the ground, you are working and earning money, it's reportable and taxable here.聽 We don't yet have any provisions for digital nomads.聽

That's your legal note. We all know what actually happens.

philip3 Member

2POSTS

last year

#20

even after retiring, I worked remotely for a US company for a while, but I had a US bank account with direct deposit. This could be an option if you are able to open a US bank account

LM2025 Member

1POSTS

last year

#21

@JulianTorrez

Hello Julian

Hope you are fine.

I am wondering if I could bother you about a tax question.

My email is ***

If you contact me I'll tell you more.

Thanks and keep strong

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ddmcghee Dominican Republic Expert

1948POSTS

last year

#22

@LM2025

Just an FYI - @JulianTorres hasn't been active on this site in over 3 years. Do you have US or Dominican tax questions? Maybe someone else could help you.