H1B : Taxes paid by employer on behalf of employee

[priya2s]

hi ,

I asked this question to so many people .But no one is giving right information.

It would be great if you can share your information with me

I am on H1B and I am consultant .I work my a employer is who is my relative. He is take 11 % from

the payment which he gets from the prime vendor and he gives me remaining amount.

According to his version he says he needs 11% to run the pay roll and pay payroll taxes.He says he has no margin(profit) when he takes 11%.

Some people say this as " employer taxes" . I really don't know that is the difference between payroll tax and employer tax.

But what ever it may be ,can some one please tell why employer need 11% of my amount and pay taxes to gov? What will be the minimum they require if they are paying some taxes.

So what are the taxes paid by employer to gov when he runs a pay roll to his employee. I asked this question to many people till now one gave right information and many of my friends have same question.

Please share your information.

Thankyou

[JoeF]

I am on H1B and I am consultant

You are not a consultant. You are an employee. On H1, you can only be an employee.

If your employer sends you to work for a client on-site, that is the employer's decision. You are still an employee.

I work my a employer is who is my relative.

That's irrelevant. You are an employee, regardless if the employer is a relative or not.

He is take 11 % from

the payment which he gets from the prime vendor and he gives me remaining amount.

According to his version he says he needs 11% to run the pay roll and pay payroll taxes.He says he has no margin(profit) when he takes 11%.

That is rather illegal.

You get a salary, either a monthly salary or an hourly salary.

That salary has nothing to do with what some client of the employer pays the employer.

You need to get paid at least the salary specified on the LCA. You have a copy of the LCA, right? The employer is required by law to give you a copy of the LCA.

Some people say this as " employer taxes" . I really don't know that is the difference between payroll tax and employer tax.

Payroll taxes include income tax and FICA taxes.

There is no such thing as "employer taxes."

Again, you seem to have some misconceptions about what a salary is. Get a copy of the LCA, which shows the salary you have to get per law.

Forget any percentage stuff. The LCA doesn't contain any percentages.

Oh, and you need to get paid on bench as well. What's your "percentage" then?

[pontevecchio]

Are you getting the LCA salary?

[t75]

An employer has many taxes - FICA (SS), state employer taxes and income taxes. In addition, he is requried to withhold and remit taxes that you are required to pay. Frankly, I think you are getting a great deal and he is not making and could be losing money (depending on the state) with taking only 11%. You will NOT be getting the entire amount paid by the client for your services. If you do not like the arrangement, find a new employer.

[chtummala]

yes he need to pay that amount .. he is not making any profit

this are the taxes needs to pay by employer ( his portion not the taxes you see in u r pay stub )

6.2% + 1.45% social security and medicare..

and some state tax ( UI ) ( depends on state you are living ) ..

if apply some local taxes ..

[priya2s]

@pontevecchio , JoeF

: I am getting more pay than LCA.

Thankyou chtummala .I got it. Thankyou so much for your clarification.