Almost every country has reporting and withholding obligations. In most jurisdictions, Remote, as the legal employer of record, must report the applicable taxes, withhold them from the employee, and remit the withheld funds to the applicable tax authorities. If the employer of record does not fulfill its withholding and reporting obligations, then they are out of compliance. If instead, the client withholds and reports the income, that could introduce co-employment risk for the client.
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