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Receiving payroll from U.S.

Last activity 05 October 2024 by philip3

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meangreen88

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

planner

I am not sure I understand your question. Your "payroll" doesn't get processed here.  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.  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.  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,  I can help  you with that.

meangreen88

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

Theyay, and I can help you either way honey!

DM1

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

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

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

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.

JulianTorrez

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.

planner

I just sent you a private message.

cushion03yeti

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

CHRISTOPHER DAVID56

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 .


https://migracion.gob.do/en/

cushion03yeti

👌

cushion03yeti

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

mitrapito

@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) See discussion in DGII to the Dominican Republic



Artículos 267, 268 y literal f) del art. 272 del Código Tributario.

Dominican law paper (PDF)

om2252001

@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

@meangreen88

no requirements your money gets deposited directly to your US account

philip3

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

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.  We don't yet have any provisions for digital nomads. 


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

philip3

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.

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