How to pay Indian employees from the US until I get there?

Diana

I've been talking to my neighbor (a new accountant) and she agrees with you based on just a few hours of self study online (I shared those links so as to make sure I knew what I was reading.)

As I tell folks all the time, my memory isn't good enough and I'm not a good enough actor for me to lie, or cheat, ...I forget my "lines."

The peace of mind I'll have will be well worth the little bit of time and energy it takes to learn my stuff and make everything above board. Besides, I talk in my sleep.

I did sort of fall into opening the program so quickly and I don't regret that decision. But it's time to do my homework. Which is one reason (that and the twitchy employee) that I posted. Thanks so much for all your help! I'm truly indebted to you all for your advice and especially to you Capn for everything!

__________________
“I slept and dreamt that life was joy. I awoke and saw that life was service. I acted and behold, service was joy.” - Rabindranath Tagore

Sierra

There are too many NGO's started by well-meaning foreigners that were indeed effective in helping people, but fell apart due to some of the stuff that the Captain has brought up. Unfortunately, it's not enough to have a willing heart and a sacrificial life, you need a cool brain to be able to take care of the details for you. You can't have everything. You need the visionary and the rational type who can do the administration. When getting the vision and the ideas, it is good to plan and think with a cool head, what can you actually follow through with on a long-term basis. It would be better to take care of a small operation properly than get grandiose ideas on giant ones that become unmanageable and ultimately fail. The needs of India, like the rest of the world, are like a bottomless pit--there is always someone else in need. The key is to figure our your little part where you can be sure to complete your promises.

There have been countless orphanages started and had to end abruptly because things weren't in order. Who got hurt the most?

This is not an easy business. No one has all the answers for success. We are all learning.

Diana

Well said. I keep on promise to myself first and foremost: Never make a promise to a mother or a child (anywhere) that I cannot keep. I never promise schools in the US will provide a service to a child until I know it is going to happen, so why would I make grand promises to folks who arguably need those services even more?

While it may be tempting to say "I'll take care of it." I think I've gotten greater respect and acceptance for only saying what I can do. I also get more help.

One personal view I have is that too often "helpers" come in and "do everything" for people which is only of limited usefulness. Maybe it comes from years of working with kids with disabilities, but I have no pity for these kids or their families. Pity does no good for anyone except the one who feels noble for feeling pity. I have respect and I want them to respect themselves. The can only do that if they are free from pity and that comes from coping first, and then doing. I've had kids cry as I help them walk to the bus on weak legs. And it hurts to know they hurt. But it's the only way they will learn to walk. (And even if they don't thank me later, their parents do.)

Same for families, if I just hand everything to them and they don't contribute, I've taken away their power as parents and taught them only to beg and be dependent. They will not be able to take on the bigots and bureaucrats their kids with disabilities will face if they are weak or dependent. They have to be strong enough to advocate for their kids rights day after day. That takes so much energy but is the only way these kids get the things they need for a level playing field, that will give them that slim chance at making something of their lives whether in the US or India.

I think families appreciate that respect more than a free ride. Or at least that has been my experience.

crvlvr

I have not read all the precious posts. But, here is my 2c. Pay them as "consultants" from your US bank account in USD. They can deposit the checks at thir Indian banks and then it becomes their responsibility to file taxes etc.

capt_mahajan

Indian employers have to deduct TDS from Indian consultants.

I don't know the rules when a foreigner pays Indian consultants directly from abroad, but I would expect something similar.

crvlvr

In the US, the client does not have to deduct anything. Since the work is being performed in India, Indian law snhould apply. But, since the client is in the US, it is impossible for the Indian govt to apply the law.

Another option is for the employees to join together and form a partnership. Moneys can be paid to the company and the "partners" can, instead of salary, draw profits from the company. As far as I know profits from partnerships are not taxed twice (once as a corporation and once for income tax) http://dateyvs.com/gener04.htm.

Diana

Actually they are registering as a np society so we can apply for grant funding (which won't go to a for profit organization.) But that then is predicated up eventually securing FCRA approval. Which I keep getting told is headache but doable. I'm meeting with an international non-profit tax "specialist" next week and hope to learn more on the employee withholdings situation.

Does anyone know if govenernment approved schools that are also NGOs (but don't have FRCA) can accept funds from abroad?

Also, and this is probabaly a dumb questions, what if the funds are not a "donation" but simply funds I am spending to do a project in India? That is, this NGO is not some charity that I am donating as a goodwill gesture but rather it's "my" project. Someday even to be a research type project of interventions that are more or less effective. If it's a research project that I am funding, is that still considered a donation. (Talk about splitting hairs!) Here in the U.S. I sometimes pay research assistants and that isn't a donation.

crvlvr

any amount of funds can be sent to India as long the recipient pays applicable tax on it.

Sierra