penguinsix

I've taken a position in the US working for a small company based in London. Unfortunately, we haven't quite figured out how I'm going to get my monthly salary. They wanted to make a payment into a UK bank account, but as I have to pay US taxes, I was a bit interested in having them pay my US account after doing all the withholding and Social Security, etc.

I was wondering if anyone has had any experience with a good, UK-based payroll service that handles payments to the UK, or any other suggestions on how to handle this?

BritGuyTN

get paid in sterling into a uk account then periodically transfer money with xe.com

at the end of the year take your Uk payslips to a US accountant who will prepare your return.

Job done

I've been doing this for nearly 4 years now and it works great.

penguinsix

My only concern about this is the US self-employment tax contribution (I think). If the company does the witholding, they are responsible for the approximately 5% contribution, whereas if I do it as 'self-employed' it falls on my shoulders.

penguinsix

Umm...maybe I called it wrong. It might be that the company pays unemployment and workmans comp that I would be responsible. I just thought it would cost more if I was self-employed instead of having it withheld by the company.

scrubbedexpat099

Depned if you are contracted to work in the US or the UK.

mdyoung

If you are going to be here working 5 years or less you might be eligible for a certificate of coverage to exempt yourself from U.S. Social Security and Medicare taxes.

You can find info in the U.S./U.K. Social Security agreement:

http://www.ssa.gov/international/Agr...phlets/uk.html

Call the Social Security Administration's Office of International Programs at (410) 965-0144 if you have questions on benefits under the agreement. For questions on the coverage rules of the agreement, call (410) 965-3549.

NC Penguin

Are you going to be an employee of the UK company or a contractor? This makes a difference because if it's the former, if it's not too late you should negotiate to have the employer pay for your taxes to be filed in the US. If you're a contractor, you're on your own.

Also, regardles of whether you're an employee or contractor, I hope you have a written contract.


NC Penguin

Richardowen

I'm just starting this too but I'm working as a contractor for a UK company getting paid in pounds into UK bank. I'm paying tax on my very small salary but I get dividends from the shares I own in my UK company. This is a very common Contractor thing to do, just gotta be aware of IR-35 !

Agree with the last post.... if it's payroll through a UK company then firstly I'd say you're very lucky that they're willing to pay into a US account... should be clear on what you're PAYE situation and NI situation is in the UK.

Personally I prefer the idea of getting paid in £'s and paying UK tax as I'm self-employed in the UK and just happen to be living in the US.

Rich./

guya

As a US contractor with a UK company the US tax filing (which is compulsory) will be horrid.

I would take professional advice IMMEDIATELY.

scrubbedexpat099

If I remember his posts, he is a visitor, not a resident.

snowbunny

Rich, you are adjusting to become a US PR. You don't "just happen" to be living in the US short-term or that would negate your permanent residency claim. (I don't care, but USCIS will!)

It would be helpful to know what visa each of you is here on.... and unless the rules have changed, you must have work authority in the US. Rich, your I-130 has been approved but I don't recall if you have work authorisation since your application started as a K-3.

Richardowen

You're right... K3 and I-130 approved. I've applied for EAD but yet to get it.

This is the sticking point that i think came up in another thread.... I'm technically a UK contractor... I'm working through my UK company although at present I just happen to be in the US where I'm doing the work.

Does it matter where I do the work from as I'm billing the company from the UK ?

Do I need to have EAD to work from home in the US for a company in the UK ?
I mean I'm not taking anyone's job here...

I'm sure the tax issue will be complex but I'm happy to give it to a professional to sort out, I just don't want to get deported or have visa issues because of this....

It is an interesting situation for sure and I've recieved a lot of speculation on this but no-one can give me a clear answer.

Rich./

Bob

yup, that's the sticking point, and yes, you need EAD in hand to do work, even off shore, which is why people on H1B's with spouses on H4's tend to get a tad bored....basically, your in the US, you are working, it doesn't matter who for and where that work is being paid, for which, you need work authorisation....admittedly, working without authorisation is usually forgiven if your AOS is based on marriage to a USC, but is it worth the extra hassle of what if's?

penguinsix

My situation is that I'm a US citizen now and pretty much covered by all the insane tax laws here. But my company in the UK is trying to figure out if they have to pay me through a US entity (which they would create), take out the witholding, and thus, register as a foreign company employing an American, or if they should just make a payment to a UK bank account and consider me a contractor or something. I was kind of hoping they would do all the payroll witholding crapola for me so I wouldn't have to fill out a tax form and write a check every 3 months (quarterly estimated taxes).

They're actually dealing with the accountants and payroll folks today so we'll see what they recommend.

Richardowen

Hmmm, well the hassle is that we don't pay rent or eat for the next 2 months so I've kinda got to do this.

How would USCIS know that I'm working ? Can't I just say I'm not ?