Working from India while on US payroll

[Indiancitizen]

I am on H1B with a Green card in progress in EB3 category with I-140 approved.I have already completed my 6 years on H1B and is currently on 3 years H1B extension.

My company is looking to explore the opportunity of outsourcing work to India.However they do not have an office in India and does not want to open up the office until they see the benefits which would probably take another year or so.At this moment they want me to work remotely from India while I will be paid here in US.

I have few questions:

1. Is it legally possible to work from India while being on a US payroll ?
2. What will happen to my GC and H1B ?
3. Is there a timeframe in which I need to come to US to maintain my status ?
4. Can the company file for my change of job location to be in India so that I don't run into any issues?
    Or is this not required ?
5. When I work from India I will not be getting the H1B minimum wages as the cost of living in India is less. What will happen in this case.Can I  work  on less than required wages while being in India
6. Do I need to pay taxes in US and India or only in US ?
7. Can I skip medicare deductions since I will no longer be in US ?
8. My other option is to ask the company to carry on with my GC and I open up an office in india and work as a sub contractor. Is it possible for the company to pay me in India ? Will that be a problem for them ? Do I need to pay taxes in both the countires ?

[jairichi]

I am on H1B with a Green card in progress in EB3 category with I-140 approved.I have already completed my 6 years on H1B and is currently on 3 years H1B extension.

My company is looking to explore the opportunity of outsourcing work to India.However they do not have an office in India and does not want to open up the office until they see the benefits which would probably take another year or so.At this moment they want me to work remotely from India while I will be paid here in US.

I have few questions:

1. Is it legally possible to work from India while being on a US payroll ?

2. What will happen to my GC and H1B ?

3. Is there a timeframe in which I need to come to US to maintain my status ?

4. Can the company file for my change of job location to be in India so that I don't run into any issues?

    Or is this not required ?

5. When I work from India I will not be getting the H1B minimum wages as the cost of living in India is less. What will happen in this case.Can I  work  on less than required wages while being in India

6. Do I need to pay taxes in US and India or only in US ?

7. Can I skip medicare deductions since I will no longer be in US ?

8. My other option is to ask the company to carry on with my GC and I open up an office in india and work as a sub contractor. Is it possible for the company to pay me in India ? Will that be a problem for them ? Do I need to pay taxes in both the countires ?

1. Yes.

2. It will be still under process.

3. Not till you get your GC.

4. Not required. Ask an attorney.

5. In India you are no longer in H1B status and so H1B rules does not apply.

6. You have to talk about this with a qualified tax professional.

7. Yes.

8. Too many scenarios. Talk to a good attorney and tax professional.

[t75]

Attorney and international tax expert are necessary. Your employer should make these arrangements for you since the offer is for his benefit; he has obligations in this scenario and needs to consult these pros for his business model change.  He also needs to consult Indian experts to insure the business is properly formed in India as well. Do NOT participate in anything that is suspect in either country; it is in your best interest to be 100% in compliance with both sets of laws and regulations.

 

Realize that one you receive GC, you must make the US your home.

[Indiancitizen]

The company's attorney is not reliable and has very often given me advise which were incorrect. Anyways the company is talking to the legal experts but I would like to gather information on my end as well to make sure what the company's attorney is saying is valid or not.

[colorshifter]

Hi, 

 

I am also eager what was the outcome ?  I am an Indian citizen, worked in US for past 6 years and on 3 year extension and waiting for GC (with i140 approved). The whole of last year I have been tele-working for the US company (on US payroll) from New Zealand.

I am more interested in knowing how you filed tax, basically my company is in Maryland and they run the payroll using my old home address in Virginia.  

 

Did  you file your tax yet ?

 

This week I am planing to file taxes, so wondering

 1. what country of residence I must choose (India or New Zealand) ?  

 2. I believe federal tax we must pay, but for the state tax already deducted will that get refunded ?

 3. Did you pay tax in India for the income received in US?

 

Thank you

Jose