H1B Employer Tax

[Sree]

Hi,

Can any one help to know what are employer taxes. I mean to ask what are the taxes paid by employer to irs/govrnment for an emplyoee.

Please note I am not talking about employee taxes which are(Fedral Tax+Income Tax+Social/Medicare Tax).

I want to know what are employer taxes and how much he will pay on behalf of employee.

Can some help to provides employer taxes in percentages ( avg).

Thanks to all viewers. Please share your information.

[JoeF]

None of that is any of your concern.

You get a salary. That is all that matters for you.

The employer has to pay the appropriate taxes based on your gross salary. The payroll systems handle that just fine. And there is no one-size-fits-all nor an average.

The employer of course can not deduct that from your payroll.

If you think your employer illegally deducts money from your paycheck, you may want to discuss that with a labor lawyer and/or file a complaint with DOL on form WH4.

[rs_1973]

As JoeF says, that is not your concern - however, if you feel that these taxes are somehow being passed on to you by your employer, compute what your taxes should be (using the tax tables from the state/federal sites, the social security and medicare taxes), and see if these are what are being withheld from your salary. If not, check with your HR and as a last resort approach a labor lawyer to file a complaint against your employer.

[pinot]

Hi,

Can any one help to know what are employer taxes. I mean to ask what are the taxes paid by employer to irs/govrnment for an emplyoee.

Please note I am not talking about employee taxes which are(Fedral Tax+Income Tax+Social/Medicare Tax).

I want to know what are employer taxes and how much he will pay on behalf of employee.

Can some help to provides employer taxes in percentages ( avg).

Thanks to all viewers. Please share your information.

AFAIK, employer pays social and medicare along with any state disability and unemployment insurances. It varies from state to state as few states don't have disability and unemployment insurances.

[Sree]

I think you did understand my question. My employer he is paying 11% taxes on behalf me to government.He says its employer tax

I dont know what is meant by employer tax. So I wanted to know about it . I am not sure to go DOL or not with out knowing what taxes he is exactly paying as I am employee to him I know about employee taxes which are Fedral Tax,Income Tax,Social Security Tx.

I want to know about employer taxes.

[JoeF]

I think you did understand my question. My employer he is paying 11% taxes on behalf me to government.

No, he is not.

The taxes paid on behalf of you are FICA and income taxes.

What the employer has to pay does not even show up on any paystub.

There is no such "employer tax".

As I said, if you think that your employer is cheating you, file a complaint with DOL.

[livliv]

This is just a term coined by consulting companies who have percentage arrangements with their employees.

For example, the employer will tell you that they will pay you 80% of what the client pays them and you would expect that they will only deduct from your 80% what the government expects you to pay. But, instead of that they deduct all the taxes, withholdings, insurance etc. from your 80% and keep their 20% as net profit. Effectively, they get to keep the entire 20% for themselves and you get less than 80% for you. This is okay from law point of view if your take home + your deductions is greater than LCA amount. You may have little grounds to complain to DOL if that happens to be the case. If take home + your share of deductions is less than LCA, you can complain to DOL.

If there is a specific offer letter or agreement that mentions this percentage arrangement or if it specifies which taxes, withholding will be kept from your 80% and if the employer is keeping more than that, you can show this agreement to a lawyer and potentially sue the employer.

Of course, percentage arrangements don't work when you are on bench as 80% of zero is still zero and less than LCA.

[JoeF]

On H1, a person always gets a salary. That's at least what is listed on the LCA.

That has to be paid regardless if the person is on a project or on bench. Percentage doesn't make sense there. What is 80% of zero?

The law requires that the person is paid at least the salary listed on the LCA. No but or if.

Any percentage can only be on top of that.

If an employer claims otherwise, they are either lying or breaking the law.

Of course, they count on the greed of the employee, who only sees a percentage number and is blinded by that and doesn't do the math.

Yet another reason to avoid such employers.

To the OP: find a better employer, one who understands the law, and pays according to the law.