transfer from parent to subsidiary and h1b

[tikloo]

My company is transferring me to its wholly owned subsidiary which has its own TAX ID. Both parent and subsidiary operate from the same office.

As part of transfer I am being asked to sign a termination letter with parent company and then sign a new employment agreement with subsidiary.

Once I am transferred all my payroll, medical insurance etc would be taken care by subsidiary.

According to my company's lawyer there is no need to file for a transfer of my H1b to subsidiary.

I have following questions

1) Is it correct that there is no need of H1b transfer from parent to subsidiary in my situation.

2) If yes, in case of RFE from USICS, how can employer-employee relationship be proven with parent company (since parent is the holder of my H1b petition) although my pay stubs, W2 would have the name and Tax id of subsidiary?

Looking for reply asap.

[shilpatalks]

I was in a similar situation when I transferred from the subsidiary to the parent company and I did not have to go through and H1 transfer. But I also did not have to sign a termination letter and accept new employment.

1. In general this is true but in your case the tricky part is the termination letter. This may pose a need to file H1 transfer. Also, if the job description , pay , location etc are changing you will need to amend the H1.

2. A letter from the legal department should prove the relation. The letter should clearly indicate that the parent is accepting the interests and liabilities of the subsidiary. The legal dept or lawyer should be able to draft this. If you are filing a transfer then such a letter is not needed as you will have a new job. If you are not filing for a transfer you will need this letter if you are going for stamping etc.

Overall, your situation is fine except the termination letter part.