W2 employee working from Chile?

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gregf
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W2 employee working from Chile?

Post by gregf » Mon Nov 25, 2019 9:00 pm

Curious if anyone knows how I would declare in Chile or if there would be a problem working on a W2 as full time employee of US company while resident in Chile? Could I just declare with boleta each month? At the end of year? Would the company be expected to have a chilean presence?

Anyone doing this?

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admin
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Re: W2 employee working from Chile?

Post by admin » Mon Nov 25, 2019 10:20 pm

NO

not much more to say.

you are over thinking it.

about 50% of our clients in chile work as contractor's somewhere else
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gregf
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Re: W2 employee working from Chile?

Post by gregf » Mon Nov 25, 2019 10:22 pm

So just do boletas or what?

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Re: W2 employee working from Chile?

Post by admin » Mon Nov 25, 2019 10:22 pm

FYI, you might want to get in to the Chilean tax system, to dodge the self-employed tax (12.5%) in the states.
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gregf
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Re: W2 employee working from Chile?

Post by gregf » Mon Nov 25, 2019 10:24 pm

Yeah I am a resident, just and do want to do that and also show income to build credit. Just want to know how to do it and how to explain it to employer here in Usa.

gregf
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Re: W2 employee working from Chile?

Post by gregf » Mon Nov 25, 2019 10:32 pm

And under this i would t pay SE tax as I am employee of Us company on a W2, being paid into my us bank acct, etc. Employer pays half of the fica etc

Jamers41
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Re: W2 employee working from Chile?

Post by Jamers41 » Mon Nov 25, 2019 11:39 pm

I have independent income here and I issue monthly boletas, but it does not involve a US company at all so I unfortunately I can't help much.

thisisreallycomplicated
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Re: W2 employee working from Chile?

Post by thisisreallycomplicated » Tue Nov 26, 2019 12:11 am

Read this about the US/Chile totalization agreement:
https://www.ssa.gov/international/Agree ... chile.html

There's some bad info and confusion out there, regarding self-employed people. I posted about it a while back, on this thread: viewtopic.php?f=11&t=17084&p=190694&hil ... on#p190694
But I never looked into it for W2 employment, so that might be less confused. Either way, you should read the actual agreement yourself, and be careful who you believe.

Also, IRS publication 54 should answer a lot of questions about your US taxes. I don't know what Chile's requirements are for a W2 employee.
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gregf
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Re: W2 employee working from Chile?

Post by gregf » Tue Nov 26, 2019 5:14 am

Thanks, I have claimed the exemption from fica in previoua years when working as employee in chile. It looks like on a w2/employee of us company, i would be exempt from afp contributions and just pay the 7,5 or so of fica.

Still not sure if i should write monthly boleta honorario to show income in chile or just declare as foreign income at end of year though.

gregf
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Re: W2 employee working from Chile?

Post by gregf » Tue Nov 26, 2019 6:33 am

So after more reading i am fica exempt in this scenario and would just have no withholdings with w2 usa company and do boleta honorarios in chile each month to keep it simple.

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