Living in Israel and Working for a US-Based Employer

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Post Aliyah Telecommuting: Living in Israel and working for a US-based employer

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  • Israel is an impatient society, employers are looking for short, resumes that focus on strong experience in a narrow field, rather than a more well rounded, general resume If you are both a secretary and a teacher, maintain two different resumes Taylor your resume specifically to the job you are applying for, use the same key words where possible If you need more than one page, put the least interesting information on the second page. Second page should have your name and contact info as well
  • Israel is an impatient society, employers are looking for short, resumes that focus on strong experience in a narrow field, rather than a more well rounded, general resume If you are both a secretary and a teacher, maintain two different resumes Taylor your resume specifically to the job you are applying for, use the same key words where possible If you need more than one page, put the least interesting information on the second page. Second page should have your name and contact info as well
  • Family support (Make sure that your spouse is supportive of the idea because it significantly affects the family’s schedule.) Tech Support (To make this work you will be totally dependent on technology: VoIP, reliable Internet connectivity, Skype. Get best VoIP, Internet line possible -even if more expensive. Have 2 in case one goes down. Have a US phone number which can transfer to your Israeli cellphone when you’re away from home or your PC. H ave a good relationship with your local computer support person but don’t abuse it – call SOS only when you are simply unable to work.) Office Environment (Some people find it’s better to rent a space close to home than to work from a home office. Others have a separate room in their homes. In either case, make sure the space is your own, that you can “go to work” and “leave” work.) Maintain Balance (Draw boundaries between work and personal time otherwise the work will consume you when you work from home. The work that must be done during US business hours do then, but “after hours” work should be done during Israeli business hours. Some people do all of their work during Israeli business hours and then check emails and phone messages later in the evening so there isn’t a long lag in response time.) If You Are the Boss… (If you are your own boss, make sure that you have capable back up in N America that you can rely on. If you’re in a freelance business, make an effort to attract and retain US clients before you leave.) Look Into Volunteer Opportunities (To help you integrate into the community and also in order to network – in case the telecommuting option doesn’t work out, you’ll have started to build a network.)
  • Write a proposal emphasizing the advantages to your employer (low overhead, continuation of employment and not having to retrain someone new, because of the time difference you can work while he/she is sleeping and they’ll wake up to completed work product, etc. Here’s a link to our online sample proposal: http:// www.nbn.org.il/employment/telecommuting.htm ) Point out that working remotely is becoming increasingly popular (Some people already work virtually even while in N America so it’s not easy to transfer to Israel. If you work for an international company highlight the fact that everyone is already telecommuting in a sense. An increasing number of companies are looking to outsource abroad in order to get quality work at a fraction of the price.) Be Flexible (Offer to take a cut in salary, be flexible in terms of your responsibilities and identify those that are most valuable to your employer. Some people don’t say it’s a permanent move but rather present it as “let’s try it and see how it goes”, cover additional expenses such as office, flights back yourself – don’t expect employer to, suggest a project based arrangement.) Don’t be afraid to ask! (Depending on your boss, can be open about your reasons for making Aliyah. Some Olim have found that their employers respect their decision and end up being more receptive to the idea.)
  • There are different ways of structuring the telecommuting arrangement: independent, wage earner, incorporate. Some employers insist on employee status, others insist on independent contractor status. Some people who are independent set up an Israeli company which then hires them out to an American company.) Many accountants recommend incorporating and not working as an independent. The independent has to file an income tax return in Israel and also has to pay Social Security in the US. For more details, consult with an accountant who can help you plan wisely. Exemption from Israeli corporate tax for corporation owned by Oleh that is located in foreign country – Income must be generated outside of Israel • 10 year exemption from taxation for all types of income, passive and active, that are generated outside of Israel. • No need to report the income to Israel Tax Authority
  • Living in Israel and Working for a US-Based Employer

    1. 1. Commuters & Telecommuters Making Aliyah and Working for Employers Based in the US
    2. 2. Advantages <ul><li>Salary </li></ul><ul><li>Continuity of employment </li></ul><ul><li>Flexibility during the day </li></ul>
    3. 3. Challenges <ul><li>Working US hours </li></ul><ul><li>Self-discipline </li></ul><ul><li>Isolation from colleagues, in Israel and abroad </li></ul><ul><li>Not integrating into the Israeli workforce and society </li></ul>
    4. 4. Tips for Making It Work <ul><li>Having the family’s support </li></ul><ul><li>Using “cutting edge” technology </li></ul><ul><li>Creating a home office environment </li></ul><ul><li>Maintaining balance </li></ul><ul><li>If you are the boss… </li></ul><ul><li>Volunteering </li></ul>
    5. 5. Negotiating With Your Boss <ul><li>Write a proposal to your employer, emphasizing the advantages </li></ul><ul><li>Point out that working remotely is becoming increasingly popular </li></ul><ul><li>Be flexible </li></ul><ul><li>Don’t be afraid to ask! </li></ul>
    6. 6. Taxation Issues <ul><li>The tax reform gives you a 10 year exemption on foreign-earned income </li></ul><ul><li>Carefully structure your telecommuting arrangement </li></ul>
    7. 7. Scenario 1: Working in the US <ul><li>Taxpayer is physically working in the US </li></ul><ul><li>Taxpayer does no work while in Israel </li></ul><ul><li>Domiciled (center of life) in Israel </li></ul><ul><li>Aliyah after January 1, 2007 </li></ul>
    8. 8. Taxes: Working in the US <ul><li>Taxes in the US </li></ul><ul><ul><li>No foreign-earned income exemption </li></ul></ul><ul><ul><li>Pay State taxes, though a non-resident </li></ul></ul><ul><li>Taxes in Israel </li></ul><ul><ul><li>10 year tax exemption </li></ul></ul><ul><ul><li>No need to report income in Israel </li></ul></ul>
    9. 9. Scenario 2: Working in Israel <ul><li>Taxpayer physically working in Israel </li></ul><ul><li>Taxpayer does no work in the US </li></ul><ul><li>Domiciled (center of life) in Israel </li></ul><ul><li>Made Aliyah after January 1, 2007 </li></ul>
    10. 10. Taxes: Working in Israel <ul><li>Taxes in the US </li></ul><ul><ul><li>Claim either foreign-earned income exemption or foreign tax credit </li></ul></ul><ul><ul><li>Do not need to pay State taxes </li></ul></ul><ul><li>Taxes in Israel </li></ul><ul><ul><li>Pay Israeli taxes (revenue generated in Israel) </li></ul></ul>
    11. 11. Scenario 3: US and Israel <ul><li>Taxpayer physically working both in Israel and the US </li></ul><ul><li>Domiciled (center of life) in Israel </li></ul><ul><li>Made Aliyah after January 1, 2007 </li></ul>
    12. 12. Taxes: Working in the US & Israel <ul><li>In the US </li></ul><ul><ul><li>Claim foreign-earned income exemption or foreign tax credit on a pro-rated basis </li></ul></ul><ul><ul><li>Pay State taxes on a pro-rated basis </li></ul></ul><ul><li>In Israel </li></ul><ul><ul><li>Pay Israeli taxes on portion of income generated in Israel </li></ul></ul><ul><ul><li>Do not need to report US generated income </li></ul></ul><ul><ul><li>Taxpayer can plan to take advantage of status to apportion income </li></ul></ul><ul><ul><li>Work does not need to be apportioned based on physical presence </li></ul></ul>
    13. 13. Thank You… <ul><li>Thank you to Aron Epstein of KR Marsh CPAs for his assistance! </li></ul><ul><li>Email: aron@krmarsh.com </li></ul><ul><li>Phone: (02)643-9258 </li></ul><ul><li>VoIP: (646) 201-9286 </li></ul>
    14. 14. Questions? Ask NBN! <ul><li>Email: employment@nbn.org.il </li></ul><ul><li>Facebook: NBN Employment Dept. Group </li></ul><ul><li>LinkedIn: NBN Employment Group </li></ul><ul><li>Twitter: @RachelBerger </li></ul><ul><li>Personal consultations in Israel and overseas </li></ul>

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