Issue

Having spoken to several employer of record companies and the annual fees ranged from $12,000 to 15% of total compensation ($45,000 per year). They were uncomfortable with the idea that these two key hires were going to be employed by a third-party but would be carrying US company business cards and holding themselves out as employees of the US company and could potentially create both employment and tax liabilities for the US company. 

Solution

We advised registering the US company as a non-resident employer in the UK and operating a monthly payroll for the two employees for an annual total of $3,000. In addition, we were able to establish and operate the mandatory local pension plan and obtain small group health insurance cover (not mandatory) for an additional $3,000. 

Outcome

Crowe saved the client a minimum of $6,000 in year one alone and enabled the client to legally hire their own employees in the UK.