Had enough of that long commute? Don’t like the water cooler chat? Or moving to Israel and want to stick with the same job? Switching from in-house to remote requires some advance planning to ensure a smooth transition.
Get your employer onboard
Whether you are making aliyah and keeping your job or switching to a remote position for an Israeli company, the first step is to get your employer onboard. This is easier if your place of work already has remote workers and if there is a culture of hybrid work at the company. If you have already demonstrated that you can work from home effectively, your employer will be more likely to agree to the new arrangement.
If your employer is unsure about taking the risk, propose a trial period. Once they see that you are just as effective working remotely as you were in the office, you can discuss making the arrangement permanent.
Set up your home office
Set yourself up for success by creating a work environment that boosts productivity and minimizes distractions. A room with a door that closes will keep noise and distractions to a minimum and make it easier to conduct meetings via phone or Zoom.
Your home office should have all the equipment you need, such as a comfortable chair, high speed internet, a printer, webcam and speakers. If you like to take notes by hand, keep a notebook and pen in your office.
When there’s no space to properly set up a home office, you can work at your dining room table or on your couch. But this situation isn’t ideal, especially when other family members are at home. Consider working at a coffee shop or coworking space on days when distractions abound at home (such as during school vacations or when home repairs are taking place) or on an ongoing basis.
Getting paid
In a case where you were working in-house at an Israeli employer’s office and are now working remotely, there is likely no change to how you get paid. But if you were previously getting paid as a W-2 employee in the US and are now working remotely from Israel, this transition necessitates a change in how you are paid. An American company can’t hire a W-2 employee residing in Israel without incurring tax obligations in the country.
There are two methods of getting paid by an American company while working in Israel. The first is to register as a freelancer in Israel and get paid by the US employer as a client. This arrangement can work well if you intend to take on other clients and act as a business. However, its main disadvantage is that the American government will require you to pay 15% of your income to Social Security. On top of income tax, Bituach Leumi and health tax, your required payments may not leave you much in the way of a salary. Another disadvantage is that freelancing comes with paperwork and accounting fees. Before deciding on or rejecting this course of action, consult with an accountant, since factors like how much Social Security you have already paid and your projected income affect whether freelancing is a good plan.
The other method is to become an employee of an Employer of Record service. The American company becomes the EOR’s client. The EOR collects your salary from them and passes it on to you after withholding taxes. Since you are employed in Israel, you are exempt from paying Social Security in the US. You pay a flat fee or a percentage of your income (depending on the arrangement with the EOR) and don’t incur any accounting fees. This method is particularly appropriate for people working for one company outside of Israel.
Establish a system that works for you
Working remotely is different from working in an office, especially because you have more freedom in how, when and where you work. Switching to remote work is a unique opportunity to establish a system that makes you most productive and motivates you to sit down at your computer and do what needs to be done. Once you settle into a routine that works for you, you may start to wonder how you ever used to work in an office!