Pay structure on H1B

[samunik]

Hello guys,

 

I work for a major IT company in India (Not services) and recently traveled to USA for a long term assignment. I have already been in USA as a consultant for a lengthy period of time and hence the pay structure suggested by the company has irked/ surprised me a lot.

 

My company has indicated that I would be paid a living allowance in USA and my salary would be credited in India. I am a bit shocked by this as this actually beats the purpose of prevailing wages as I am on H1B.

 

Am I right in my doubts?

 

Thanks.

[jairichi]

Hello guys,

 

I work for a major IT company in India (Not services) and recently traveled to USA for a long term assignment. I have already been in USA as a consultant for a lengthy period of time and hence the pay structure suggested by the company has irked/ surprised me a lot.

 

My company has indicated that I would be paid a living allowance in USA and my salary would be credited in India. I am a bit shocked by this as this actually beats the purpose of prevailing wages as I am on H1B.

 

Am I right in my doubts?

 

Thanks.

I think if you work for an IT company in India that has an US project with a client you might be paid less compared to being employed as FTE by an US employer. I might be wrong.

[JoeF]

If you are on H1, you need to get paid at least the salary listed on the LCA. And that has to be paid in the US, with US check of direct deposit, and US taxes have to be paid on that.

If the company doesn't want to do that, file a complaint with DOL on form WH4.

[omshiv]

leave them and do a H1 transfer to a company here in the US.

[t75]

This is not unusual for B1. Do the total payments meet the H1B LCA?

 

You might want to have your contract reviewed by an attorney. While this is an employment issue in this case I suggest an immigration attorney (all attorneys should be knowledgeable in contract law) since the main concern is whether the employment arrangement is permitted by visa requirements.

[rahul412]

My company has indicated that I would be paid a living allowance in USA and my salary would be credited in India. I am a bit shocked by this as this actually beats the purpose of prevailing wages as I am on H1B.

 

Am I right in my doubts?

 

 

You are 100% correct. You need to get paid here.

What your company doing is nothing but evading tax. That's BIGGEST crime in US, if you won't get any pay or pay stubs in US then you can't file for transfer in future if you want to. So better file a complaint against that FRAUD employer, if not you will be in trouble for evading tax.

[samunik]

Thanks for all the replies guys.

 

The company is one of the biggest multinationals, I work for the indian operations.

 

My total salary (US + India) is more than LCA. My US income and Indian income are both taxed in USA due to US tax laws. Its just I am forced to accept a part of the salary in India. Indian income gets taxed again in India for which I would have to claim relief under double taxation.

 

My only issue is that my company is forcing me to get paid in India as its their policy. 

 

JoeF,

Does the wage mentioned in LCA has to be paid in USA? Since the company is deducting taxes correctly I am not really sure, if its a case of DOL/WH4.

 

Getting paid in 2 continents is a nuisance and getting your money back from indian government is a joke.

 

Thanks.

[rahul412]

The company is one of the biggest multinationals, I work for the indian operations.

 

My total salary (US + India) is more than LCA. My US income and Indian income are both taxed in USA due to US tax laws. Its just I am forced to accept a part of the salary in India. Indian income gets taxed again in India for which I would have to claim relief under double taxation.

 

My only issue is that my company is forcing me to get paid in India as its their policy. 

In your LCA, you doesn't mention about your indian salary.

On H1 you need to get paid what's mentioned in your LCA.  If you are getting paid in india that doesn't count at your H1 salary.

[ajaysharma]

I'm not too sure about some of the answers here. I think this is allowed as long as the total income is taxed in the US (I believe US and India have a tax reciprocity agreement => income taxed in the US is not double taxed in India again). If this value exceeds LCA then the discussion here is whether part of the payment can be made in India and part US.

 

I've seen this exact scenario in the past with some people I know and it seemed to be legal (as in, their legal paperwork didn't get them into trouble).

 

This one's complex in the sense you need comments of both immigration and tax experts because the last thing you want is to be on the wrong side of both USCIS AND IRS!

[JoeF]

Thanks for all the replies guys.

 

The company is one of the biggest multinationals, I work for the indian operations.

 

My total salary (US + India) is more than LCA. My US income and Indian income are both taxed in USA due to US tax laws. Its just I am forced to accept a part of the salary in India. Indian income gets taxed again in India for which I would have to claim relief under double taxation.

 

My only issue is that my company is forcing me to get paid in India as its their policy. 

 

JoeF,

Does the wage mentioned in LCA has to be paid in USA? Since the company is deducting taxes correctly I am not really sure, if its a case of DOL/WH4.

 

Getting paid in 2 continents is a nuisance and getting your money back from indian government is a joke.

 

Thanks.

The salary has to be paid in the US.

The LCA lists the salary in US dollars, not in a foreign currency, you need to get paid in US dollars.

If you don't get paid the salary as specified in the LCA, you are out of status.

[rahul412]

I'm not too sure about some of the answers here. I think this is allowed as long as the total income is taxed in the US (I believe US and India have a tax reciprocity agreement => income taxed in the US is not double taxed in India again). If this value exceeds LCA then the discussion here is whether part of the payment can be made in India and part US.

 

I've seen this exact scenario in the past with some people I know and it seemed to be legal (as in, their legal paperwork didn't get them into trouble).

 

This one's complex in the sense you need comments of both immigration and tax experts because the last thing you want is to be on the wrong side of both USCIS AND IRS!

If it is taxed in US then it should be paid in US dollars. So Indian salary doesn't come into picture.

So every month the salary after the taxes ( net pay) has to be deposited in US dollars.