Working From India on US Payroll (Employers + Employees)

India has become a hub for talent in specialty professions. But, how do employers and employees in both the US and India work together legally?

In this article, we'll discuss working remotely from India for a US company. We'll also discuss H-1B visas and how they help both employees and employers. Finally, you'll also learn about Wise Business as a great option for you to pay your remote staff or to take payments as a remote worker.

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Can I Work from India on H1B?¹

TheH-1B visa is a non-immigrant visa. It allows US companies to hire foreign workers in specialty occupations. This includes jobs in fields such as IT, engineering, and finance. Current regulations state that H1B work from India online for a US company is possible.

First, the job must be a specialty occupation under H-1B guidelines. It must also meet the education requirements set by the Department of Labor. Additionally, the employer must maintain a relationship with the worker throughout their employment.

The pandemic and travel restrictions have allowed many H-1B holders to work remote. They often work from their home countries, including India. This has created opportunities for individuals with visa limitations who declined offers before.

How Long Can I Work from India on H1B?²

An H-1B visa is a non-immigrant work visa that allows foreign nationals to work in the United States for up to 6 years.

But there have been recent changes in immigration policies. The duration of H-1B visas has become a topic of concern for many individuals. This includes those working for US company from India. The US government has tightened regulations and increased scrutiny on H-1B visas. This makes it difficult for workers to extend their stay beyond the initial 3-year period.

As a result, more and more Indian employees are opting for remote work opportunities. They're even working with US companies instead of moving abroad. This saves them from visa issues, offers a better work-life balance, and reduces costs.

Can I Work For Indian Company From US?³

This article is about working from India for a US company. But it's worth mentioning that the reverse is also possible. Indians who hold valid work visas can work for Indian companies while residing in the US.

This is a lot easier now with the introduction of remote working arrangements. This is where employees can work from anywhere in the world. They only need to have a stable internet connection.

H-1B visa holders in the US are not allowed to work for an Indian company as it goes against the terms of their visa. But with the rise of remote working, companies in India are now more open to hiring US citizens. This is because they can bring valuable skills and experience to the table.

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How Long Can You Work On H1B Outside US?²

The H-1B visa is a popular option for Indian professionals looking to work in the US. But there have been recent changes in immigration policies. This means many face challenges in obtaining an H-1B visa or renewing their existing one. This has led to a rise in remote working opportunities from India for US companies.

According to USCIS guidelines, an H-1B visa holder can spend up to 6 years working in the US. But this period does not have to be continuous and can be split into many trips outside of the country.

An employee must maintain their relationship with their company and follow visa regulations. With that, they can work remotely from India for a US company for an extended period.

Can I Work from Canada on H1B?⁴

Let's address a common question related to H1B working remotely outside US. Can someone on an H-1B visa work remotely from Canada? The short answer is yes, it is possible. But there are certain considerations and limitations to keep in mind.

Firstly, the individual must have valid authorization to work in both countries. This means they would need a valid H-1B visa for the US and a valid work permit for Canada.

Additionally, remote work may not be workable for all job positions. Some may need you to have a physical presence at the company's location. It is important to consult with your employer and immigration authorities. They will help you decide whether you should be considering remote work from Canada on an H-1B visa.

Benefits & Challenges

One of the best parts of working remotely is the significant cost savings for both parties. For employees, they can avoid expensive relocation costs. They will also save on daily expenses such as commuting, office attire, and eating out. Hiring remote workers from India can be much cheaper than hiring local talent in the US, too.

Another benefit of working remotely from India is the flexibility it offers. There are different time zones between India and the US. This means employees have more control over their work schedules. They can choose to work during hours that suit them best. This also allows for a better work-life balance. Individuals can focus on their personal and professional commitments as needed.

But some challenges come with working remotely from India. One of the main issues is communication and collaboration. Physical distance and time differences can make things challenging. It's especially difficult to maintain effective communication with team members. Remote workers need to be organized, self-motivated, and efficient in managing their tasks.

Another challenge is adapting to a different work culture and environment. India has a large English-speaking population and many cultural similarities with the US. But there are still differences in work practices, expectations, and communication styles. These may take some time for remote workers to adjust to.

If you're willing to take on those challenges, then remote work is a great option to try out.

Other Possibilities: Hiring in India

One thing you should study is the legal and tax implications of the country.

Even though the legal system in India and the US are similar, foreign companies hiring employees in India will still be entering an unfamiliar and regulatory environment.

There are multiple options in hiring employees in India.

1. Use third-party services, such as Upwork
2. Offshore Hiring through Employer of Record

Use third-party services (Upwork and Fiverr)

One of the best ways to hire employees in India is to have a third party local entity service to outsource employment and serve as intermediary in an existing employee-employer relationship.

Companies like Upwork offer numerous competent contractors with various skill sets. Moreover, this service cuts out a lot of the problems of hiring someone in India through other means.

Wise Business offers the chance to pay your contractor across currency through Upwork and similar job sites. This way, you won’t lose out on costly transfer markups and hidden fees. Wise Business offers transparent options.

Offshore Hiring through Employer of Record (EOR)

If you want to go further in finding talent and hiring employees from India locally, you can work with an EOR.

What is an Employer of Record (EOR)?

An Employer of Record is the official employer of an employee. They are a third-party organization used by businesses hiring international employees. The biggest benefit of this kind of hiring approach is that you avoid compliance issues, which can tie down your business and take away your peace of mind.

Looking to hold funds, as well as send and receive payments globally?

Pay your team
with Wise Business >>

Wise Trustpilot Score: 4.2 / 5 - Great (200,000+ reviews)¹⁰
No minimum balance requirement and no monthly fees
Manage accesses and permissions, do batch invoice payments, integrate your accounting software

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Sources used :

1. H-1B Program | U.S. Department of Labor
2. 7th Year H-1B Extensions Under AC21 104(c) and 106(a) - Statutes and USCI… - The Visa Bulletin Immigration Law Updates
3. Employee Rights When Working for Multinational Employers | U.S. Equal Employment Opportunity Commission
4. H-1B visa holder work permit - Canada.ca
5. Wise Rating - https://www.trustpilot.com/review/wise.com

Sources last checked on 6-February 2024.