lylat

Do you mean that the company would pay for it directly? I'll bring it up but the initial plan was that I would pay for it, then reimburse it as an expense through the company. Which I was told would unfortunately still be seen as income.

Apparently when I apply for my state pension, as long as I have my records, I could have the amount transferred... but that does mean keeping the records and actually remembering for a looong time!

Thanks again

Giantaxe

There is no transfer of contribution amounts under the totalization agreement. All the totalization agreement does regarding this is allow you to qualify if you don't already do so. That will presumably be of no use for your UK pension, as you'll likely end up with a full contribution record there anyway. It will, however, allow you to qualify for US SS, assuming you have 18 months (I think ) of contributions there. Normally, you need 40 quarters - 10 years - of contributions to qualify. However, you will be able to use your UK NI record to help you get past the 10 year mark. But your US SS amount will be calculated off your two years or whatever of contributions only. Additionally the infamous Windfall Elimination Provision will reduce your US SS even further. In other words, you'll get basically a tiny amount of US SS.

md95065

Having the company pay for it directly will, almost certainly, not help.

While there are moving expenses which can be used as deductions against US tax, if you receive any other benefits they will be taxable regardless of whether you pay for them and the company reimburses you or whether the company pays for them and you just receive the benefit "in kind".

The only way that I could see you possibly being able to avoid US taxes would be if the UK company gave you some money either before you entered the US or after you returned to the UK but, in that case, you would, presumably, have to pay UK taxes on it.

It isn't uncommon for the company to "gross up" the amount of any relocation benefits (ie pay you extra money to cover the taxes) so that the reimbursement is effectively tax neutral.

lylat

I'm going to request for professional services to handle this transition - neither myself or the company have any idea what's going on. I'll keep everyone updated, hopefully I don't have to turn this offer down.

Pulaski

Tax professional, shipping expert, relocation coordinator, visa/immigration lawyer?

lylat

Someone with experience on relocating an employee, currently we're solving issues as we go and it's not been a comfortable experience.

Pulaski

Sounds like you may be over-complicating things, others here transferred with their company and have pretty much done things entirely themselves - lawyer for the visa, lump sum (sometimes) for relocation expenses, accountant for the first year tax prep. Ship some stuff.

It can seem a bit daunting, but break it down to the pieces and it shouldn't be that daunting.

lylat

I understand, however the offer included that the transition would be handled for me, which has not been the case.

GeneralPowerpoint

To be fair it seems like they've got most things covered. I'd agree with Pulaski that you're probably over-thinking it. If they're getting you the visa, bumping your salary and giving you a relocation allowance you've already got the big things covered.

Worried about tax?

Just pay a guy to do your taxes for you. It's not that expensive and if you're moving December 2017 you won't need to file a tax return until April 2019 so you've got loads of time.

Worried about paying Tax on your relocation allowance?

Get them to gross it up, simples.

Worried about your pension?

Have them provide you a pension option to pay into whilst you're in the USA.

This is definitely over thinking it.

Just pay the social security and don't worry about it. Most of the tax you pay in the US is going to pay for US infrastructure that you won't use at all.

lylat

Those comments about what they've covered are things I pushed for and had to explain, it's been a tiring process. But I agree, it's just that things have changed in the last few days, being shifted onto the US payroll instead of the UK payroll means the initial offer I had agreed to has changed. I'm just trying to figure out what has changed and how as we don't have anyone looking into this for us. On top of the short deadline it's just... a lot to just "hope for the best".

Pulaski

Or only spend 75% of what they give you.

GeneralPowerpoint

Yeh don't worry that makes sense.

I think you've got most things covered so if you're worried about any big issues that they've overlooked through inexperience, don't be.

I won't pretend it's not really stressful as the day of departure nears. But living in the US, and living abroad more generally is a fantastic life experience that very few people get to try.

I moved in March, and honestly all this administrative stuff was forgotten after about a month of being here.

If this is really what you want to do, try not to let the admin put you off. It's not as daunting as it looks, honestly.