Aussie working remotely in the USA for an Australian company - what are the rules?

 Author: RachATO(Community Support)Community Support

ATO Certified Response16 Mar 2022

Hey @vsaltomare,

Sounds like a great way to experience another part of the world for a while :)

If your Australian tax residency status doesn't change, then your Australian-based employer would still be obligated to withhold tax from your earnings (PAYG), and make superannuation guarantee (SG) contributions. You'd need to declare your income to us, and your employer should check if they have any reporting requirements with the Internal Revenue Services (IRS) in the USA for work you've performed while over there.

If your tax residency status does change (i.e. you become a non-resident or foreign resident for Australian tax purposes) while performing your work from overseas, then your income would be considered 'foreign sourced', and your employer's PAYG and SG obligations in Australia would cease. You wouldn't need to declare this income to us, but both yourself and your employer might have to report it with the IRS.

Also, even if you've determined that your tax residency isn't going to change initially, it's important to re-check this every year using our online tax residency tools to make sure you're meeting the appropriate tax requirements here and overseas.