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Contracting in US for UK employer

Contracting in US for UK employer

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Old Oct 14th 2014, 11:31 am
  #16  
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Default Re: Contracting in US for UK employer

Originally Posted by lander91
Today my husband was brought into a meeting with his manager and asked if he would consider staying on the UK payroll until the end of the year working remotely from the US. Apparently they do this for a lot of their brokers (international shipping company) as long as it's less than 3 months.

I have my concerns about this - while I'm sure they've run it by their lawyers where the brokers are concerned, I would have assumed that the brokers were on temporary visas or VWP, while my husband will be a permanent resident.

Does anyone know if this is by the books for a PR? We don't want to step into any grey areas!
On which visa will your husband enter the US?
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Old Oct 14th 2014, 11:36 am
  #17  
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Default Re: Contracting in US for UK employer

He will be entering on an IR-1 visa.
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Old Oct 14th 2014, 2:08 pm
  #18  
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Default Re: Contracting in US for UK employer

Originally Posted by lander91
He will be entering on an IR-1 visa.
So as soon as he enters the US he will have Permanent Residency status. If he is doing work in the US he must pay US income and payroll tax. He needs to ask his company how they will handle his exemption from UK tax and NI.
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Old Oct 15th 2014, 1:31 am
  #19  
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Default Re: Contracting in US for UK employer

Originally Posted by nun
So as soon as he enters the US he will have Permanent Residency status. If he is doing work in the US he must pay US income and payroll tax. He needs to ask his company how they will handle his exemption from UK tax and NI.
Income tax - understood, of course he has to file U.S. tax and take a foreign tax credit.
Payroll tax, as in U.S. Social Security - really?

I know there is a lot of theoretical discussion out there about payroll tax and/or withholding for cross-border employees, and what might or might not theoretically be required, but in the real world, has this ever been an issue for single-employee situations? Especially short term. And in the million to one chance of a problem, is the liability with the employer or employee?
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Old Oct 15th 2014, 2:16 am
  #20  
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Default Re: Contracting in US for UK employer

Originally Posted by JAJ
Income tax - understood, of course he has to file U.S. tax and take a foreign tax credit.
Payroll tax, as in U.S. Social Security - really?

I know there is a lot of theoretical discussion out there about payroll tax and/or withholding for cross-border employees, and what might or might not theoretically be required, but in the real world, has this ever been an issue for single-employee situations? Especially short term. And in the million to one chance of a problem, is the liability with the employer or employee?
Payroll tax will have to be paid somewhere. If the work is done in the US someone will have to use the reciprocal agreement to exempt from FICA and continue NI.
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Old Oct 15th 2014, 2:24 am
  #21  
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Default Re: Contracting in US for UK employer

Originally Posted by nun
Payroll tax will have to be paid somewhere. If the work is done in the US someone will have to use the reciprocal agreement to exempt from FICA and continue NI.
And if they simply continue with NI regardless?
Obviously, if they were sending an employee to the U.S. as an expatriate they would file the relevant forms, but if it was a short-term transitional situation of a U.K. employee leaving and simply finishing off some work this may not happen in reality. And is it really a problem if not?
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