• ilcalabro
    1
    I have a LTD company in the UK and we are looking into offer summer camps in the US. During the summer we would need to hire US citizens for up to 6 weeks. Could I offer them a fixed-term contract directly from my UK company? Could I pay them a gross salary and then they deal with their obligations in the US? The contracts offered are only seasonal. I'm looking forward to hearing from you.
  • John Berry
    31
    Hi, and many thanks for setting off a thread.

    I regret I’m not an expert on employment in the US. However, here’s a response based on our work done in the rest of the World.

    To employ locally, you will need a local entity or a branch office. That entity will need to register with local tax and employment authorities. It then employs the people and sorts their tax and other deductions. That will cost you a significant overhead considering your short season.

    You cannot employ someone in a foreign country under UK law. Unless there are special circumstances, local law will always take precedence.

    It may therefore be better to have the people declare themselves self-employed or open their own personal service firm. You then trade with them at arms’ length, entering a commercial contract for supply of services. The services are certain deliverables that you can agree to be delivered over the six weeks.

    A final option is to have them employed through an existing US firm. You then trade with that entity at arms’ length.

    I recommend that you investigate the second option with a local US lawyer, or better - have the people that want to work with you to run the camps investigate. If there are no reasons to prevent this, we can help you with a suitable commercial contract.

    Hope that helps.
  • John Berry
    31
    Dear John,

    Thank you for your email and your advice.

    I have another question if you don't mind. Do you believe that running the programme in the US for 6 weeks constitute a permanent establishment for my company in the US?

    Have a great day,
  • John Berry
    31
    Hi again,

    Again using logic based on typical laws:

    You are a UK entity selling camps in the US. So presumably, your customers, the attendees, have a contract with you. That contract exploits international treaties that enable a buyer in one country to have a contract with a supplier in another country. That, boxed, works.

    You then intend delivering the camp to the buyer using labour that is resident in the US. So somehow, your UK entity must contract with your suppliers (or employees) who will make the delivery.

    If you sub-contract to a local firm, you would have a contract for delivery of the camp with that supplier. Again, boxed, that works.

    If you want to employ the local workers, they must be employed by some local entity. Whether the duration of the employment was 6 weeks or 6 years would not be relevant. You would need some entity that would discharge your responsibilities as an employer (by, for example, withholding tax).

    In some countries, the local entity can be lightweight and some countries (in the EU, for example) allow ‘employment without entity’. This still requires registration in order to discharge responsibilities. You will need to make local enquiries about whether the US allows any form of light registration.

    I hope this helps.

    John
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