"Some startups are already moving elsewhere to hire cheaper engineers and reduce other costs. They don't have to go very far from the Bay Area, perhaps to southern California or other states."
^This. Or hire remote, which is a perk in itself.
^This. Or hire remote, which is a perk in itself.
If someone wants to start a company focused on streamlining the hiring & benefits process across state or country lines, I think that would go a very long way to increasing the remote-only attitude among startups.
That's weird, none of the US startups that hired me (I'm from EU) complained about it.
They actually complained more about the wire fees than anything else :)
Maybe it's because I'm setup as a one-man-company in my home country?
The way I'm setup, it's actually less paperwork for me if the company is outside the EU -- which is why I prefer those.
I just checked my papers now and it does say "consultant".
Is there a difference (legally, in the US) between contractor and consultant?
Basically unless there is a requirement for reverse VAT charges which isn't applicable to the US there is nothing a company needs to do when hiring a contractor other than pay the invoice, on the other hand there are tons of regulatory and legal requirements that they need to meet when they offer you employment.
I personally prefer to pick each service provider separately. For example, a payroll processor like Gusto will handle all the onboarding forms (W-4, I-9, W-2, state new hire reports), state insurance compliance, fed and state payroll taxes in all 50 states. TaxJar figures out and reports sales taxes in all states. Guideline for 401Ks etc. Healthcare is definitely still the most problematic one.
Yes, it could be easier and more streamlined. However there's already some great services that can make hiring in multiple states easier.
Or he can start one man ltd corp in his country and make company-company contract. It is mostly a matter of will.
How is it a perk? You provide your own equipment, give up some of your personal space, do your own support, the company saves on rent, cleaning, utility bills, equipment, furniture, security... and they convince you its such a perk you should be paid less too! Remote workers should be more highly paid! The boss is laughing all the way to the bank!
Remote isn't for everyone but is a perk for many.
In particular, my last employer gave everyone the option to use an app[1] for easy access to email on their personal phones. I refused to install it, since it gave my (then) employer the ability to remotely wipe my phone at the press of a button.
[1]: https://play.google.com/store/apps/details?id=com.good.andro...
Wiping a personal device to delete business data within one app would be illegal in a lot of countries.
Maybe it is, maybe it isn't - the point is that you need to give your employer the permission to wipe your entire device. And even if you trust them - whose to say there will never be a bug that triggers that code path?
As always, your rate is only ever as high as you set it.