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The Daily Insight

Do I have to pay taxes if I work for a US company?

Author

James Williams

Published Mar 02, 2026

If you are an employee of a U.S. company and your employer doesn’t withhold income tax or doesn’t withhold enough taxes, you may have to pay estimated tax. Though your international income is taxed regardless of where you reside, you may qualify to claim a foreign earned income exclusion.

Can I as a non U.S. citizen work for my US company from my home country?

USA labor laws and immigration laws do not apply to work performed outside the USA. As long as the labor is allowed in the country where the work is performed, then it is fine.

Why do US companies hire foreign workers?

Hiring foreign employees brings people into your business who have different perspectives since they came from entirely different places. The blending of ideas and perspectives from various cultures is the best possible recipe for creativity and innovation that can take your company to new heights.

Can a US citizen work for a foreign entity?

@rememberstarfox , for a foreign entity with no US presence , there may be no EIN and therefore they will have a difficulty withholding and transmitting your federal , State and FICA taxes. Generally such foreign entities, when employing an US person remotely, tend to pay directly and issue an income statement.

Can a US citizen work for a Canadian company?

It doesn’t make any difference that the company is located in Canada, if you are working in the U.S. I don’t want to be considered self employed. You have to discuss that with the employer and make sure you have a clear understanding, before you start the job, that they will treat you as a U.S. employee and give you a U.S. Form W-2.

Can a non US citizen work remotely for a US company and be?

However I had to quit as a full-time employee and start a company in the USA to make this happen, and, just FYI, setting all of this up to be a fully legal and workable solution was quite an endeavor with a lot of involvement from business tax experts. The company cannot keep you on the payroll, nor will they want to.