H1B middle layer paying expenses, any issue?

[sanskar82]

0votes

Hi,

I'm working on H1B for employer A. Employer A has contract with vendor B, vendor B has contract with Prime vendor C and prime vendor with client D. so the model is:

Me -> A -> B -> C -> D

Now, at some point last year, vendor B (middle layer) offered to pay my expenses, as I had found a better paying project. So now I receive a check every month against my expenses from vendor B in addition to my pay check from my employer.

This amount received from vendor B, against expenses does not appear on my W2. As per vendor B I'm not supposed to pay tax on this as this is against expenses.

Now, I'm confused is vendor B correct in saying that I'm not supposed to pay taxes? Would this create a problem GC filing as I'm supposed to be paid by only my employer since I'm on H1B?

Thanks,

Sanskar

[JoeF]

You can't get paid by anybody but your employer.

You may be out of status.

[t75]

three layers between you and a client! What a mess.

[rahul412]

Now, at some point last year, vendor B (middle layer) offered to pay my expenses, as I had found a better paying project. So now I receive a check every month against my expenses from vendor B in addition to my pay check from my employer.

This amount received from vendor B, against expenses does not appear on my W2. As per vendor B I'm not supposed to pay tax on this as this is against expenses.

On H1 you work for your employer and your employer is suppose to pay you . The amount you received from vendor B is treated as illegally earned money since vendor is not your employer.

This is the first case I saw where employee is involved in illegal activity without the knowledge of employer. Dude, you are in trouble.

[wiweq]

"Now, at some point last year, vendor B (middle layer) offered to pay my expenses, as I had found a better paying project. So now I receive a check every month against my expenses from vendor B in addition to my pay check from my employer."

=> This money from B is treated as illegal money as you have no work authorization to work for B. Think about the laws and regulation rather "better paying project".