Secondment to NYC for 12 months
#16
Re: Secondment to NYC for 12 months
My only thought was that maybe they were working for one of the MNC's that "takes care of all that stuff".
I used to work for an oil co, and the expats never got involved in any tax issues...the company took care of it all. We could choose where to be paid (host country, home country, combination), and all we had to do was once a year send in an "internal tax return " which was basically to declare any non-company earnings (rent, investments etc). The company took care of everything from there on.
The OP may be on something like that, but its odd if they are as a company that was willing to go to such lengths would surely have a better system for sorting out the health insurance...
I used to work for an oil co, and the expats never got involved in any tax issues...the company took care of it all. We could choose where to be paid (host country, home country, combination), and all we had to do was once a year send in an "internal tax return " which was basically to declare any non-company earnings (rent, investments etc). The company took care of everything from there on.
The OP may be on something like that, but its odd if they are as a company that was willing to go to such lengths would surely have a better system for sorting out the health insurance...
#17
Joined: Feb 2002
Posts: 6,848
Re: Secondment to NYC for 12 months
TBH for such a short stay in the US it might be a better option to stay in a 'serviced apartment'. They are intended for medium to long-term lets and are fully furnished. Most of them also have a weekly cleaning service and some offer facilities such as a gym or swimming pool. The more upscale ones also tend to offer a free weekday breakfast and have informal coffee mornings or barbeques.
When my husband's company send their employees on an expat posting, they usually put people up in a furnished serviced apartment for their 'look-see' visit or for the first month in the new location whilst looking around for somewhere more long term (most expats are sent on 3 year postings). It's an ideal situation if travelling with children as you can at least cook at 'home' or just fix breakfast and there is more space (and privacy) than a cramped hotel room. I would certainly push the company to arrange for a serviced apartment, at the very least for the first month. They are fully furnished, have a full kitchen and have at least one TV and fast internet service, usually a landline phone too.
I've stayed in serviced apartments in Singapore, London, New York City and in Zug, Switzerland. The one we stayed at in NYC was on East 52nd St, a dead-end street right next to the East River. It was pretty basic though and typical of many NYC apartments the washing machines and dryers were on a lower level and it was 'first come-first served' as to use of them.
In Singapore we stayed at the Fraser Suites apartments and I often chatted with the other residents staying there; quite a few couples and families were on 1 year to 18 month postings and they chose to stay there for the duration of their assignment - it may be a good option for the O/P to do this and quite often the prices are reduced for a longer-term stay - it's worth trying to negotiate. If you book directly then there will be no realtor's fees....perhaps this could go towards the rent
example: http://singapore-suites.frasershospitality.com/
Obviously the serviced apartments in NYC are likely to be more expensive than further out, but there are some in the NY metro commuting towns. You could just google 'serviced apartments NY and NJ' and there will be many results....here's a couple of examples:
http://www.aveliving.com/locations/union/default.aspx
http://www.aveliving.com/locations/w...s/default.aspx
http://www.stayaka.com/locations/tim...e/default.aspx (same group as above (Korman Communities) but likely to be super-expensive compared to the other two!)
http://www.furnishedquarters.com/cor.../overview.aspx
http://www.suttoncourt.com
When my husband's company send their employees on an expat posting, they usually put people up in a furnished serviced apartment for their 'look-see' visit or for the first month in the new location whilst looking around for somewhere more long term (most expats are sent on 3 year postings). It's an ideal situation if travelling with children as you can at least cook at 'home' or just fix breakfast and there is more space (and privacy) than a cramped hotel room. I would certainly push the company to arrange for a serviced apartment, at the very least for the first month. They are fully furnished, have a full kitchen and have at least one TV and fast internet service, usually a landline phone too.
I've stayed in serviced apartments in Singapore, London, New York City and in Zug, Switzerland. The one we stayed at in NYC was on East 52nd St, a dead-end street right next to the East River. It was pretty basic though and typical of many NYC apartments the washing machines and dryers were on a lower level and it was 'first come-first served' as to use of them.
In Singapore we stayed at the Fraser Suites apartments and I often chatted with the other residents staying there; quite a few couples and families were on 1 year to 18 month postings and they chose to stay there for the duration of their assignment - it may be a good option for the O/P to do this and quite often the prices are reduced for a longer-term stay - it's worth trying to negotiate. If you book directly then there will be no realtor's fees....perhaps this could go towards the rent
example: http://singapore-suites.frasershospitality.com/
Obviously the serviced apartments in NYC are likely to be more expensive than further out, but there are some in the NY metro commuting towns. You could just google 'serviced apartments NY and NJ' and there will be many results....here's a couple of examples:
http://www.aveliving.com/locations/union/default.aspx
http://www.aveliving.com/locations/w...s/default.aspx
http://www.stayaka.com/locations/tim...e/default.aspx (same group as above (Korman Communities) but likely to be super-expensive compared to the other two!)
http://www.furnishedquarters.com/cor.../overview.aspx
http://www.suttoncourt.com
#18
Rootbeeraholic
Joined: Aug 2009
Location: Houston, Tx
Posts: 2,280
Re: Secondment to NYC for 12 months
Just so you know, this can be a problem.
Your husband is physically working in the United States. As such, he is liable for US taxes on his income, which you probably figured, and his company is required to make not only withholding tax payments but additional taxes for unemployment, workers compensation, etc.
For example, if you are a company in the UK and hire someone and pay £100,000, your actual expenses are £109,000 or something like that, due to the PAYE expenses and other taxes that you owe for having an employee. The same is true in the United States. His company is supposed to be making these payments on his behalf.
Now the rub--if the company doesn't make these payments, guess who gets saddled with them? The employee. He is basically considered 'self employed' and will be required to make these tax payments. So from the £100,000 salary, automatically deduct the £9,000 the company is supposed to be paying from his income.
I suspected this would be the case when they told you he would be 'reimbursed' for health insurance that you purchased. They're trying to avoid their responsibilities and have him work in the US and get paid in the UK and think that would be ok. (Just think of the converse--everyone from around the world wants to work in London, but says they will pay taxes back in their home country rather than the UK because "that's where the paycheck is deposited". Think that would go down well with the voters?).
You may want to consult a US-UK tax accountant on this setup before you accept. The last thing you'd want is to work here and get saddled with a large tax liability simply because your company doesn't want to do the proper withholding and taxes.
Your husband is physically working in the United States. As such, he is liable for US taxes on his income, which you probably figured, and his company is required to make not only withholding tax payments but additional taxes for unemployment, workers compensation, etc.
For example, if you are a company in the UK and hire someone and pay £100,000, your actual expenses are £109,000 or something like that, due to the PAYE expenses and other taxes that you owe for having an employee. The same is true in the United States. His company is supposed to be making these payments on his behalf.
Now the rub--if the company doesn't make these payments, guess who gets saddled with them? The employee. He is basically considered 'self employed' and will be required to make these tax payments. So from the £100,000 salary, automatically deduct the £9,000 the company is supposed to be paying from his income.
I suspected this would be the case when they told you he would be 'reimbursed' for health insurance that you purchased. They're trying to avoid their responsibilities and have him work in the US and get paid in the UK and think that would be ok. (Just think of the converse--everyone from around the world wants to work in London, but says they will pay taxes back in their home country rather than the UK because "that's where the paycheck is deposited". Think that would go down well with the voters?).
You may want to consult a US-UK tax accountant on this setup before you accept. The last thing you'd want is to work here and get saddled with a large tax liability simply because your company doesn't want to do the proper withholding and taxes.
I have friends that have done something similar and none of them have got any of their tax money back.
#19
Re: Secondment to NYC for 12 months
Not only this but he will probably end up being taxed twice. He will pay tax in the UK (as that's where he's being paid) and if he files taxes in the US (which he should do or risk the wrath of the IRS) he will get taxed in the US as that's where he was working all year (substantial presence).
I have friends that have done something similar and none of them have got any of their tax money back.
I have friends that have done something similar and none of them have got any of their tax money back.
#20
Re: Secondment to NYC for 12 months
There are a growing number of alarm bells going off as this thread develops.
Has the company done a similar deal with anyone else? Either currently in place or in the past? Can you talk to them?
Has the company done a similar deal with anyone else? Either currently in place or in the past? Can you talk to them?