American working remote from colombia

I don't see how your employer has any legal/taxation implications, but YOU would have.

If you are a tax resident in Colombia - a tax resident is anyone who is in the country for more than 183 days cumulative in any 365 day period - Colombia then asserts the right to tax your world-wide income.

Colombia has graduated marginal tax rates just as the USA does - but the rates start at lower income levels, and the percentages are higher.  You will start paying a 19% rate on any income over about $15.5K/year USD, which quickly goes up to a 28% rate for anything over about $18,790 USD at today's exchange rate.

There are deductions you may take which a good Colombia tax accountant or lawyer would help you find, to reduce your taxable income - you would not have to pay tax on the gross amount.

See this Wiki article for more information:

https://en.wikipedia.org/wiki/Taxation_in_Colombia

These two articles talk about being a tax resident (residente fiscal) and both refer to the 183+ day rule:

http://www.mondaq.com/x/636064/Capital+ … cia+Fiscalhttps://www.gerencie.com/residencia-par … arios.html

OsageArcher,

First of all thank you for your reply - I greatly appreciate the information. I think they are mainly concerned about my residency in IL. Their original condition was they didn't really care much about where I worked from as long as I kept my residency in IL? Not sure what they are trying to protect themselves against?

OsageArcher,

First of all thank you for your reply - I greatly appreciate the information. I think they are mainly concerned about my residency in IL. Their original condition was they didn't really care much about where I worked from as long as I kept my residency in IL? Not sure what they are trying to protect themselves against?