Global Employment Solutions

Safeguard Global is Purdue’s preferred partner for International Employer of Record services and functions similarly to how Purdue’s partnership with Knowledge Services works. Safeguard Global employs the individual directly, assigns their services back to Purdue, and is responsible for maintaining all employment compliance in country (ranging from onboarding, fringes, and taxes, and offboarding). This option can bridge the compliance challenges of employing individuals internationally, while also permitting the programmatic work to continue. If Purdue wishes to employ an individual where Safeguard Global does not operate, Velocity Global is available as an alternative option.

Who	When
Safeguard Global and Velocity Global serve as Purdue’s employers of record when Purdue cannot compliantly employ individuals internationally.	If a department would like to hire a new employee or support an existing employee to work remotely and they cannot be employed on Purdue payroll, these vendors can be utilized.
How	Why
A detailed process guide on utilizing Safeguard Global and Velocity Global can be found at the link below.	Just as in the U.S., employing someone in another country and trigger employer obligations such as tax withholding and remittance obligations as well as adhering to local labor law. If Purdue is not a registered entity in that country, utilizing an employer of record ensures that individuals are employed compliantly.

Costs: There are overhead costs associated with this choice that are borne by the department. The costs are unique to each situation and country and include employer burden (adhering to statutory minimums in country), overhead costs (vendor fees) and in some countries, Value Added Tax costs as well.

Safeguard Global:

$500 onboarding fee (one time)
$550 ~ $900 admin fee (per month, varies by country)
Taxes, social insurance, benefits, etc. (per month, varies by country)
A deposit equivalent to 2 months burdened salary (salary + taxes/social insurance + benefits) + admin fee (one time, refunded when contract ends)

Velocity Global:

$1,500 onboarding fee (one time)
$1,500 or 18% of burdened salary (salary + taxes/social insurance + benefits) admin fee (per month, whichever is higher)
Taxes, social insurance, benefits, etc. (per month, varies by country)
A deposit equivalent to 1 month of burdened salary + admin fee (one time, refunded when contract ends)

Important to Note:

Both vendors require 3 month minimum contracts.
Safeguard Global requires a deposit equivalent to 2 months worth of salary + taxes + fees is required. It is refunded at the end of the agreement.
- Velocity Global requires a deposit equivalent to 1 month.
The employee is paid in local currency (varies by country) and would be required to have a local (non USD) bank account, paying them in USD is not an option.
Because they would technically not be a Purdue employee during the length of the agreement, they would not receive Purdue benefits (retirement, health, etc.). Instead, all benefits would be through social insurance in the country or optional supplemental benefits for an additional cost.
- They do continue to maintain access to Purdue systems and accrue years of service credit.
All instruction, performance reviews, salary decisions, etc. would still come from Purdue, the third party is strictly their employer on paper for the sole purpose of local law compliance.

Safeguard Global & Velocity Global Process

How to initiate the process: To obtain more information or request a quote, please compile the following information and send it to globalservices@purdue.edu.

Name:
Position:
Citizenship:
Visa assistance needed?
Country they will be employed in:
Providence or Region if applicable:
Monthly Pay rate:
AY or FY:
Hours worked per week:
Dates of employment in country:
Job description (attached or typed):
Monthly tech or other allowance (if any):
Estimated merit/bonus/additional pay (if any):

A Change of Duty Station Request should still be filed for the employee to ensure the right Purdue individuals are included in the approval process. Please include a comment on the Change in Duty Station request noting the individual will be employed by Safeguard Global or Velocity Global.

Part of fulfilling the requirements of a Purdue offer letter is to be able to be employed in the United States. Employing someone from an international location is not always an approvable arrangement and has many moving parts. As always required for individuals requesting to perform work remotely from an international location, a Change of Duty Station Request must be submitted. This ensures the appropriate programmatic and central approvers are engaged. If it is determined that starting or keeping the individual on Purdue payroll is not compliant, employing them through Safeguard Global or Velocity Global may be considered along with other options.

FAQs

Since the individual is employed by Purdue, why can’t we just employ this individual to work from the international location?

When employing someone to work remotely from an international location, there are many considerations. Employing someone to work in an international location can trigger tax-withholding obligations for Purdue as their employer in the foreign country. If Purdue is not a registered entity in that country, Purdue cannot properly withhold and remit the taxes as required. In addition to tax requirements, the employer may also have to adhere to other HR regulations (such as remitting payment in local currency, country specific reporting obligations, or participating in local healthcare). Additionally, this can trigger Export Control & Research Security issues or other requirements that need to be approved prior to initiating work in the foreign location. It is important to keep in mind that these are not internal Purdue policies but rather as the employer, Purdue must adhere to both U.S. laws and the laws of the country the individual is employed in.

Can we pay the employee as a consultant instead?

For faculty and other teaching positions, this is most likely not a compliant solution. Teaching is tied to Purdue’s core mission and it is unlikely someone who cannot be paid as an employee for compliance reasons can be moved to a consultant. Additionally, this can affect many other parts of employment such as benefits. For other employees, such as staff, duties and oversight would have to change significantly to be considered. For any questions on this, please work with the Purdue Tax team.

What if a situation came to our attention with less than 3 weeks lead time and we want to utilize Safeguard Global or Velocity Global?

Follow the steps to submit the information and initiate the request anyway. However, work may need to be delayed until the individual is properly set up (or a leave solution may need to be utilized if they are a current employee).

Where can I find additional information on utilizing Purdue’s relationship with Safeguard Global or Velocity Global?

Please reach out to Global Services globalservices@purdue.edu with any additional questions.