SSN & Medicare Employee and Employer Taxes

[ArjunaMK]

Hello,

 

I will try to explain brief about the scenario.

 

I'm with 80\20 percentage with my employer.

 

While my employer is generating Paystub he will deduct 20% and rest of the 80% is sent to pay stub generation.

 

I could see that SSN & Medicare taxes also being deducted from my pay along with Federal & State taxes from 80%.

 

But after the paystub got generated and what ever final salary amount it shows in the pay stub, My employer is deducting SSN (6.2) & Medicare (1.45) as Employer taxes from my after tax money.

 

Please suggest is it legal? and suggest how to proceed.

 

 

[JoeF]

On H1, you do NOT work on 80/20 basis. That is not allowed on H1.

On H1, you get a salary, at least the amount that is listed on the LCA.

And the taxes are based on that.

[rahul412]

You mean to say that you see two SSN and medicare taxes on your pay stub?

BTW there is no percentage salary on H1.

[ArjunaMK]

Thank you for the information.

 

Yes there are two SSN & Medicare I'm paying.

 

One (Medicare & SSN) is shown in the pay stub. and second (Medicare & SSN) is getting deducted as employer taxes from my after tax money. This is not shown in the pay stub.

 

Please advice

 

For example in my pay stub $10 (Medicare),$30(SSN), $15 Federal,9(State) as taxes. and after all these deductions if suppose I get salary of $1000 (after taxes money).

 

from this $1000 , Second (Medicare ($10) & ($30) SSN) is getting deducted as employer taxes. Which is not shown in paystub.

 

So I will get final amount in my hand as $960.

[JoeF]

It is not your money.

Again, there is no 80/20.

The employer pays the taxes as per the IRS requirements.

You get a salary. Forget about any of that 80/20 stuff. That is not how it works.

Your salary is per the LCA, not per some BS 80/20 stuff.

[ArjunaMK]

Yes, I got it sir.

 

But every month I don't get same salary. one month I get $4000, other month $4300 and other month $4500.

 

If it's as per the LCA I would get a standard salary every month right.

 

In this case my question is, Employer taxes (which are deducted from my after tax money) can't be showed in my pay stub?

[JoeF]

Yes, I got it sir.

 

But every month I don't get same salary. one month I get $4000, other month $4300 and other month $4500.

 

If it's as per the LCA I would get a standard salary every month right.

 

In this case my question is, Employer taxes (which are deducted from my after tax money) can't be showed in my pay stub?

 

The salary listed on the LCA is the minimum salary you have to get. You can of course get more.

Further, hourly salary is allowed, although it always has to be for at least 40 hours, even if you work less.

As far as the deducted taxes are concerned, there are rules for it, and the employer has to follow the rules. These rules can be rather complex (more complex than immigration stuff), so you should discuss this with a competent CPA.