What are Employer expenses between OPT and H1 candidate

[SreyRed]

Hi,

I would like to know what are expenses that employer has to spend for an OPT and a H1 candidate.

For example in this case, I m working with consulting firm and my employer pays me based on hourly rate. Employer used to take 10% commission on OPT for what he will pay his expenses/profit and after H1 employer increased commission to 20% but I pay from my pocket for most of the expenses like H1 processing, GC processing, health insurance, I will take care of marketing and finding job (they dont have any direct contacts with end clients), firm size is 3-4 people and may be 20-30 consultants. So technically my employer just runs my paycheckand maintains my status.

If this is the case for what reason employer takes 20% commission in H1 compared to 10% commission in OPT? Is there any other expenses in H1 that doesnt come for OPT?

Thanks for your suggestion and help.

[chtummala]

employer portion of social security and medicare taxes .. it would be around 7.2%

and he is more responsible in terms of immigration .. 20% is good % ..

fact is that your employer need to pay your basic h1b fee .. and fee for PERM ..

it is illegal that you are paying h1b fees

[pontevecchio]

All the scenarios you described are possibly illegal .

[wiweq]

"H1 employer increased commission to 20% but I pay from my pocket for most of the expenses like H1 processing, GC processing, health insurance, I will take care of marketing and finding job"

=> First of all, H1b is for employer- employee relationship not for business partners (80-20%). Paying H1b processing fees by beneficiary is illegal. Better to understand this thing before it's too late. Find a better employer.

[wiweq]

''and he is more responsible in terms of immigration .. 20% is good % .." => Please avoid suggesting illegal ways. Working on percentage basis on H1b is illegal. The H1b salary is not decided by %age but it is decided by LCA. With more than 300 posts, I thought you know this basic fact !

[catx]

What you described is not an employer, and would likely not meet the required emplloyer - employee relationship. Best advice -- find a real company to work for, not some bogus operation.

[t75]

Employer does not pay FICA taxes on OPT just as the employee does not.

[SreyRed]

employer portion of social security and medicare taxes .. it would be around 7.2%

and he is more responsible in terms of immigration .. 20% is good % ..

fact is that your employer need to pay your basic h1b fee .. and fee for PERM ..

it is illegal that you are paying h1b fees

Thanks chtummala ! Another related question, you mentioned 20% is good so will you be able to put that in numbers? I mean what amount is good for employer to pay his tax, expenses, h1 and profit i.e. more than $10 is good margin for an employer?

[chtummala]

''and he is more responsible in terms of immigration .. 20% is good % .." => Please avoid suggesting illegal ways. Working on percentage basis on H1b is illegal. The H1b salary is not decided by %age but it is decided by LCA. With more than 300 posts, I thought you know this basic fact !

hmm .. it can be done legally ..

[chtummala]

''and he is more responsible in terms of immigration .. 20% is good % .." => Please avoid suggesting illegal ways. Working on percentage basis on H1b is illegal. The H1b salary is not decided by %age but it is decided by LCA. With more than 300 posts, I thought you know this basic fact !

provided his base salary is LCA amount ..

[wiweq]

hmm .. it can be done legally ..

So, what if employee is out of project? What is the 20% of $0/ hr?

In a particular pay-cycle if employee failed to get paid, s/he is out of status for that period. Please correct me if I am wrong.

[chtummala]

So, what if employee is out of project? What is the 20% of $0/ hr?

In a particular pay-cycle if employee failed to get paid, s/he is out of status for that period. Please correct me if I am wrong.

people hear 80% ,70% aa lot .. that's the amount they entitled ..

pay structures are normal they get pay every month as per LCA amount ..

at the yr end or every 6 months they get paid reaming amount as bonus ..

(bonus amounts are up to company policy) ..

and in general companies select contracts to satisfy the all this math ..

[chtummala]

Thanks chtummala ! Another related question, you mentioned 20% is good so will you be able to put that in numbers? I mean what amount is good for employer to pay his tax, expenses, h1 and profit i.e. more than $10 is good margin for an employer?

around 10% of it will goes to variable costs ( taxes , payroll expenses and accounting)

there are some other fixed costs they need to pay for operating their company .. i would say they might make 3-7% as profit ..

[SreyRed]

Thanks Everyone.. Yes employer does maintain the proper LCA salary and I have 3 yr h1 visa.. there is no illegal being done.. but I just broke it down in commission to make a better understanding of the agreement I have with employeer. 80% per hr rate is approx what I will expect montly pay..

anyways actual question I had was.. What are the basic employer expenses in H1 which he has to pay from his pocket and how much he will pay? (not the taxes which are being holding in my paycheck)

[chtummala]

Thanks Everyone.. Yes employer does maintain the proper LCA salary and I have 3 yr h1 visa.. there is no illegal being done.. but I just broke it down in commission to make a better understanding of the agreement I have with employeer. 80% per hr rate is approx what I will expect montly pay..

anyways actual question I had was.. What are the basic employer expenses in H1 which he has to pay from his pocket and how much he will pay? (not the taxes which are be

ing holding in my paycheck)

they dont show up in your pay check .. he needs to pay employer portion ..

[SreyRed]

they dont show up in your pay check .. he needs to pay employer portion ..

Yes I know it wont show up in my pay check but I want to know what is employer's portion has to pay and how much?

Still my question is not answered.

[chtummala]

did you check the above posts ..

[SreyRed]

did you check the above posts ..

Sorry.. somehow I missed earlier post. Thanks...Just want to clarify on your post... if employer gets margin of 10$ per hour then 10% of it will be variable cost (taxes, payroll expenses and accounting), 3-7% of $10 will be profit and other fixed cost (may be staffing, office and other stuff) considering my employer is very small scale ( 3 staff, no marketing, no benefits, no training)... ??

So by 10$ margin do employer has window for H1 and GC expenses too?

Thanks ..

[wiweq]

"So by 10$ margin do employer has window for H1 and GC expenses too? '"

=> I wonder as an employee why you are so much interested in your employer's costs, how much they pay for their electricity bill, how much they pay for printer ink, how much they save for future businesses etc. H1b is a work visa for employer- employee relationship not for business partners settling percentage shares. Better to go with LCA salary and focus on you work rather taking interest in employer’s bills. Make sure your LCA duties/ job title are same as actual duties/ title and enjoy the LCA prevailing wages.

[SreyRed]

"So by 10$ margin do employer has window for H1 and GC expenses too? '"

=> I wonder as an employee why you are so much interested in your employer's costs, how much they pay for their electricity bill, how much they pay for printer ink, how much they save for future businesses etc. H1b is a work visa for employer- employee relationship not for business partners settling percentage shares. Better to go with LCA salary and focus on you work rather taking interest in employer’s bills. Make sure your LCA duties/ job title are same as actual duties/ title and enjoy the LCA prevailing wages.

Hello wiweq! If you dont know the answers I would be glad if you dont post any thing here.. I m seeking this forum for answers as a help but not for your advice.

For your curiosity.. I m working with small scale consulting firm where I did self training on technologies, self marketing and I deal with end clients on the pay rate (technically employer just runs my check).. so I have rights to know what is the reasonable margin for an employer and at the same time I shouldn't get ripped off..

I have been looking at your earlier answers.. you are just making unnecessary points rather answering the question!!

[wiweq]

"For your curiosity.. I m working with small scale consulting firm where I did self training on technologies, self marketing and I deal with end clients on the pay rate (technically employer just runs my check).. so I have rights to know what is the reasonable margin for an employer and at the same time I shouldn't get ripped off..

I have been looking at your earlier answers.. you are just making unnecessary points rather answering the question!!"

=> It seems you are in trap of a fraud employer. Whatever you are asking about %age sharing is not allowed on H1b. Again, H1b is employer-employee relationship visa, not for business partnership dealing in percentage sharing. An employer HAS to pay you doesn't matter if you are make $63 per hr or $0. As an H1b employee, you don’t care if your employer is large scale or small-scale or how does your employer paying you, you have to get the LCA salary. That’s law.

As an employee you don't have any rights to know that how your employer is using the revenue earned by you. If an employer shares this plan, consider getting a better employer.

Better to know the H1b guidelines, rules/ regulations before it's too late!