deltrotter

Hi Pulaski

That is very helpful.

I wonder if there MAY be the possibility that I could be paid on the payroll for my work in the US (ie. 40% of the salary) and then the other 60% (my work in the UK) via a UK company invoicing the Uni and paying UK tax on that bit....

All a bit complicated, but I think the Uni will help advise as well.

Thanks again.

Cheers

Del

fbf2006

The university should be able to apply for an uncapped H-1B petition based on part time work. You would probably need a tax accountant/lawyer to advise on the tax question.

deltrotter

Thanks fbf2006

Cheers

Del

mrken30

If want to invoice the US Uni, you would need to register as a non-domestic DBA both at a Federal and State level. This may add complexity. There is probably a reason corporations setup separate companies in each country. There may be added corporation tax for foreign companies. This is far beyond my realm of expertise.

malch

This will indeed be very messy. If the OP plans to establish a business there will be business as well as personal taxes to consider. And there's federal as well as state taxes. I don't think many (if any) states respect the US/UK tax treaty either. I know CA doesn't.

mrken30

OR doesn't either. I couldn't even offset tax paid in another State against my OR income tax.

Pulaski

It wouldn't be quite as messy as you think. Assuming he stays outside the US for more than half the year he would owe state and federal income taxes on earnings in the US, but not be tax resident, so anything outside the US wouldn't enter the US tax equation.

deltrotter

Thanks everyone - this has been really helpful.

If anyone has any other comments, please fire away.

I'll report back here on progress as well - just in case someone else finds it useful in the future.

Cheers

Dek

mrken30

This is probably true, but this is what I read, I have no idea what visa you will be on.

To meet the substantial presence test, you must be physically present in the U.S. during a period you do not hold an A, F, G, J, M or Q visa on at least:

31 days during the current year, and
183 days during the 3-year period that includes the current year and the previous two years, counting:
all of the days you were present in the current year, and
1/3 of the days you were present in the first preceding year, and
1/6 of the days you were present in the second preceding year.

deltrotter

I am reckoning on being there roughly two weeks every month.

As to the Visa - I have no idea although it has been suggested it could be an H1-B.

ian-mstm

To clarify, it's an H-1B visa not an H1-B visa. It's a subtle but important distinction... it's an H visa, category 1B.

I now return you to your regularly scheduled forum!

Ian

deltrotter

Thanks Ian!

Cook_County

Great - so you'll be on a US payroll. However, your employer will also need an English law employment contract for your non-UK duties and to withhold UK PAYE. They'll probably want two separate split contracts for convenience. Has the employer the budget to run a split payroll & 2 pension plans & comply with 2 sets of employment law?

deltrotter

Not following you cook_county. The U.S. Employer is a big university.

The employer in the UK will be a company I set up. I will likely contribute to pensions via both. The UK company would invoice the university on a quarterly basis for consultancy services provided.

Pulaski

That complicates matters more than is necessary (which is the case for most of your posts on BE. ) because you know as well as I do, that his prospective US employer is highly unlikely to create a UK payroll function just for one person.

The appropriate solution is to be paid through the US payroll for duties performed in the US and then invoice as a contractor for duties performed outside the US (in the UK). The amount invoiced should be "grossed up" for the US payroll taxes that would have been paid (if he had performed those duties in the US) - employers SS contributions, unemployment levy, etc, which are reflective of the NI to be paid in the UK on earnings invoiced as a contractor.