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  1. #1
    Join Date
    May 2007
    Posts
    21

    Question Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    Hi,

    If my foreign "part-time" employee gets approved for his H-1B, would I be responsible for withholding payroll taxes (fica) from his salary, and me being the employer, I would also have to pay the other half of these payroll taxes (fica) myself?

    Would I have to offer him health benefits too as a "part-time" worker?

    Thank you!

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Part-Time H-1b - Payroll Taxes / Health Benefits

    Quote Quoting olimits7
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    Hi,

    If my foreign "part-time" employee gets approved for his H-1B, would I be responsible for withholding payroll taxes (fica) from his salary, and me being the employer, I would also have to pay the other half of these payroll taxes (fica) myself?
    Yes, you have to treat him like an employee with proper withholding and pay the employers share of SS and Medicare tax.

    Would I have to offer him health benefits too as a "part-time" worker?

    Thank you!
    That depends on your state's statutes regarding that. You did not identify your state.

  3. #3
    Join Date
    May 2007
    Posts
    21

    Default Re: Part-Time H-1b - Payroll Taxes / Health Benefits

    Ok, thank you!

    Sorry, my state is New Jersey.

  4. #4
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Part-Time H-1b - Payroll Taxes / Health Benefits

    Quote Quoting olimits7
    View Post
    Ok, thank you!

    Sorry, my state is New Jersey.
    Then you are going to need to ask someone local about the health insurance question. New Jersey has some different laws on that issue.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    If you are operating a business that has employees and you don't know the answer to this question, you need to sit down with your accountant and get a basic education about your tax obligations. Yes, very obviously, you need to withhold payroll taxes from an employee's paycheck, and you need to pay your matching taxes.

  6. #6
    Join Date
    May 2007
    Posts
    21

    Default Re: Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    Quote Quoting llworking
    View Post
    Then you are going to need to ask someone local about the health insurance question. New Jersey has some different laws on that issue.
    Thank you...I came across this link, which is helpful.

    https://www.lexisnexis.com/legalnews...employees.aspx

    Quote Quoting Mr. Knowitall
    View Post
    If you are operating a business that has employees and you don't know the answer to this question, you need to sit down with your accountant and get a basic education about your tax obligations. Yes, very obviously, you need to withhold payroll taxes from an employee's paycheck, and you need to pay your matching taxes.
    I'm a small business owner that usually works with temps or international freelancers, so I never had to deal with payroll taxes before. This would be the first employee I'm actually hiring; so that's why I'm trying to be proactive and do some research on this so I can better educate myself before speaking with my accountant.

    Thank you!

  7. #7
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    Temporary employees are still employees (unless you deal with them through another company which employs them). You had better review what it means to employ people (even US people) let alone your attempt to exploit the H-1B system for cheap labor. Your position is everything the H-1B system is pretty much geared up to STOP.

  8. #8
    Join Date
    May 2007
    Posts
    21

    Default Re: Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    Quote Quoting flyingron
    View Post
    Temporary employees are still employees (unless you deal with them through another company which employs them). You had better review what it means to employ people (even US people) let alone your attempt to exploit the H-1B system for cheap labor. Your position is everything the H-1B system is pretty much geared up to STOP.
    I'm not trying to exploit the H-1B system for cheap labor; this developer has built my website by himself from scratch so he holds a lot of knowledge on how the code/logic of the website works. In addition, I've become good friends with him over the years and view him more as a friend than an employee.

    I wish I could pay him what he's entitled to in the USA but my business is not at that level yet; I hope one day I can hire him full-time at a normal salary. In the meantime, if my small business can help him better his family's life by coming to the USA; I'm more than willing to do so as a friend and then see what the future holds as my business grows.

  9. #9
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Do You Have to Pay Matching Taxes and Give Benefits to a H1B Worker

    He's not going to get an H1-B visa on the basis of a part time job that you could hire a US worker to do.

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