W2 but no Paystub on H1B

[jacobn]

I hold a H1B visa. My company pays me salary in home country (direct deposit to my home country bank account) and per-diem in the US. So they dont provide payslips here in US. They do provide W2 at the end of the year where they show my home country income as earned income in the US, along with per-diems, and count the total as taxable income. This is also more than what is quoted in my LCA. So my questions are: 1. Is it acceptable from H1B perspective?, 2. Will there be any issue during transfer of H1B?, 3. Can I earn overseas salary while on H1B?

[JoeF]

So, do they pay the taxes on the salary in the US?

Income tax, FICA taxes (Social Security, etc.)?

If they don't, then the company and you are violating the law.

[jacobn]

Thanks JoeF.

Yes. All applicable US taxes (SS, Medicare, etc.) are paid by the company on the gross salary. My only concern is related to the absence of payslips and whether it may hurt transfer chances and question the validity of H1B visa itself?

[t75]

Per diems are likely being used to avoid US taxes on part of income. You should be receiving US pay and slips. Find a better employer and turn your current one into the DOL and/or ICE.

[jacobn]

Thanks t75.

My per-diems are small and just cover my meal and incidental expenses (less than federal per-diem rates). Also I work for a large MNC and they have a stated policy of sending people on per-diems. So I am sure they must have taken care of tax related stuff (!?!). But I am really worried about my chances of transferring this H1B to a new employer should the need arise, since I will only have home country payslips with me for the entire duration. Also, this seems a very convoluted process to me and certainly not the usual practice.

Maybe I should talk to an attorney!