Jean

Dear Ingo and Other Experts,

I am currently working remotely from outside US for a US company and they
don't have any international branches or offices, and I am currently under
full-time employee payroll just like any other employee inside US.

I do not posses H1B visa, and never bother to apply one because I always
thought that H1B status is only needed for those physically inside the US.

I came on-board initially using the asylum-based EAD card and since 2 years
ago I decided to leave US.

As a former California resident, I have always file both US Federal and
State taxes as US residents from overseas.

Questions:
1. From the legal standpoint, what is the proper way to do this?
The company is weighing some options whether to convert me into
Consultant/Expatriats rather than full-time employee.
2. Any law or regulation that you can direct me into?

Anthony

Mayo

"Jean" <Jean@REMOVE> wrote in message news:<[email protected]>...
    > Dear Ingo and Other Experts,
    >
    > I am currently working remotely from outside US for a US company and they
    > don't have any international branches or offices, and I am currently under
    > full-time employee payroll just like any other employee inside US.
    >
    > I do not posses H1B visa, and never bother to apply one because I always
    > thought that H1B status is only needed for those physically inside the US.
    >
    > I came on-board initially using the asylum-based EAD card and since 2 years
    > ago I decided to leave US.
    >
    > As a former California resident, I have always file both US Federal and
    > State taxes as US residents from overseas.
    >
    > Questions:
    > 1. From the legal standpoint, what is the proper way to do this?
    > The company is weighing some options whether to convert me into
    > Consultant/Expatriats rather than full-time employee.
    > 2. Any law or regulation that you can direct me into?
    >
    > Anthony

If you work outside the US you do not need a us visa for it, the US
has no extra territorial powers over you. I believe the US firm has
the ability to hire people outside the US with no problems. If they
change you from an employee to expat or contractor there should be no
visa implications

SInce you are paid as a US employee they probably withold US taxes
from your paycheck, I hope you have not just been paying them - under
US federal tax law you will pay US taxes only if you provide services
in US, since you do not do that you should be able to reclaim every
single cent of federal tax you paid (and probably CA taxes too). I was
in a similar situation (with an H1 but owrking outside US) and I got a
refund of most taxes paid (I did work in US for 20 odd days) (The IRS
disagreed at first, I sent a letter and explained and they mailed me a
huge check back).

If you become a international contractor for them you will lose some
benefits available to US employees (i.e. Medical, some job protection,
etc.) - I am not sure if you take advantage of them now (maybe you do
not elect to use their medical and buy your own) so it is not clear if
the switch will hurt you in that regard.

Also, be aware that you are and will be liable to pay taxes to the
country where you reside (since you provide the services there) and
possibly also to the country of your citizenship (if they are not
same, based on their tax laws of course)

I do not believe your question is immigration related, but rather tax
related. There is a newsgroup misc.taxes.moderated where you can post
your question.

Good luck

Anthony

Thanks Mayo for sharing this information. Any web related links that I can
confirm this?


"Mayo" <[email protected]> wrote in message
news:[email protected]...
    > "Jean" <Jean@REMOVE> wrote in message
news:<[email protected]>...
    > > Dear Ingo and Other Experts,
    > >
    > > I am currently working remotely from outside US for a US company and
they
    > > don't have any international branches or offices, and I am currently
under
    > > full-time employee payroll just like any other employee inside US.
    > >
    > > I do not posses H1B visa, and never bother to apply one because I always
    > > thought that H1B status is only needed for those physically inside the
US.
    > >
    > > I came on-board initially using the asylum-based EAD card and since 2
years
    > > ago I decided to leave US.
    > >
    > > As a former California resident, I have always file both US Federal and
    > > State taxes as US residents from overseas.
    > >
    > > Questions:
    > > 1. From the legal standpoint, what is the proper way to do this?
    > > The company is weighing some options whether to convert me into
    > > Consultant/Expatriats rather than full-time employee.
    > > 2. Any law or regulation that you can direct me into?
    > >
    > > Anthony
    > If you work outside the US you do not need a us visa for it, the US
    > has no extra territorial powers over you. I believe the US firm has
    > the ability to hire people outside the US with no problems. If they
    > change you from an employee to expat or contractor there should be no
    > visa implications
    > SInce you are paid as a US employee they probably withold US taxes
    > from your paycheck, I hope you have not just been paying them - under
    > US federal tax law you will pay US taxes only if you provide services
    > in US, since you do not do that you should be able to reclaim every
    > single cent of federal tax you paid (and probably CA taxes too). I was
    > in a similar situation (with an H1 but owrking outside US) and I got a
    > refund of most taxes paid (I did work in US for 20 odd days) (The IRS
    > disagreed at first, I sent a letter and explained and they mailed me a
    > huge check back).
    > If you become a international contractor for them you will lose some
    > benefits available to US employees (i.e. Medical, some job protection,
    > etc.) - I am not sure if you take advantage of them now (maybe you do
    > not elect to use their medical and buy your own) so it is not clear if
    > the switch will hurt you in that regard.
    > Also, be aware that you are and will be liable to pay taxes to the
    > country where you reside (since you provide the services there) and
    > possibly also to the country of your citizenship (if they are not
    > same, based on their tax laws of course)
    > I do not believe your question is immigration related, but rather tax
    > related. There is a newsgroup misc.taxes.moderated where you can post
    > your question.
    > Good luck

Mayo

"Anthony" <NoSpam@NoSpam> wrote in message news:<[email protected]>...
    > Thanks Mayo for sharing this information. Any web related links that I can
    > confirm this?
    >
In terms of the tax implications in US, get publication 519 from IRS
(from www.irs.gov), it is their tax guide for aliens.

It clearly states that if you get wages for services performed outside
the US and are not a US resident or US citizen then the income is not
taxable under US law, even if it is paid by a US company in USD and
deposited directly into a checking account on an American Bank. But as
far as I know most countries will tax the services if they are
provided (i.e., the work was done) in them. If you are an independent
professional it will be your responsibility to declare that income and
pay those taxes.

In terms of not needing a US visa to work for a US company outside the
US, I have no links, however how can the US require that, it is
outside their jurisdiction, if that were true then every outosurced
job to India will require an H1B visa and that is not the case.

Jean

Thanks Mayo for the info. I start having some understanding now. However, I
do have one last question that puzzle me quite a bit. For the purpose of
satisfying the I-9 form, which is an employment eligibility form from US
employer, what are they (US employer) supposed to fill?


"Mayo" <[email protected]> wrote in message
news:[email protected]...
    > "Anthony" <NoSpam@NoSpam> wrote in message
news:<[email protected]>...
    > > Thanks Mayo for sharing this information. Any web related links that I
can
    > > confirm this?
    > >
    > In terms of the tax implications in US, get publication 519 from IRS
    > (from www.irs.gov), it is their tax guide for aliens.
    > It clearly states that if you get wages for services performed outside
    > the US and are not a US resident or US citizen then the income is not
    > taxable under US law, even if it is paid by a US company in USD and
    > deposited directly into a checking account on an American Bank. But as
    > far as I know most countries will tax the services if they are
    > provided (i.e., the work was done) in them. If you are an independent
    > professional it will be your responsibility to declare that income and
    > pay those taxes.
    > In terms of not needing a US visa to work for a US company outside the
    > US, I have no links, however how can the US require that, it is
    > outside their jurisdiction, if that were true then every outosurced
    > job to India will require an H1B visa and that is not the case.

Mayo

I do not know that fact, I would suggest they ask an employment
expert. I see how this is an issue from their part because it carries
significant penalties for them if they are audited

You are not working in US so the form does not apply to you, you are
not under US law. I believe the issue is that they have you on the
payroll as an employee, if they paid you as a consultant - i.e. you do
work send them an invoice every month you would not have that issue