Conducting already-paid work before EAD

[glmg21 330]

I have a very specific question about the much-discussed topic of working remotely for a foreign-based company prior to EAD approval. I've been reading all of the threads on here, way over 20 of them, and they offer robust but conflicting advice from users including @A'n'L, @bob85, @Loki_Go and @geowrian. I'm aware that the general consensus seems to be that working for a foreign company, paying taxes in that foreign country, and having that money paid into a foreign bank account is a grey area, with an equal number of suggestions saying it's a good or bad idea.

What I'm wondering, though, is whether I can undertake work in the United States for which I've already been paid a retainer fee. I'd be doing all of my work from my home, and my client is willing to pay me their fee in full and ahead of time, before I even reach the United States; essentially buying my time in advance of me being a K1 visa traveler. For the purpose of this agreement, my client could either pay me as a freelancer, or as a full-time employee on a fixed-term contract; is either of those preferable for this purpose too?

 

Does this raise any issues, and is it still seen as a grey area? My motivation for this work is not out of necessity, as my fiancee and I will be comfortable financially; however, if I can work I would like to, not least to stave off the boredom and have more disposable income while waiting for AOS. I just want to make sure I'm not making any fatal mistakes, particularly in the current immigration climate. Thanks in advance for your thoughts on this subject.

Edited June 1, 2017 by glmg21

[Ontarkie 14,223]

I'm going to say no you cannot do it. If you didn't do the work your client would have to hire a USC or someone authorized to work in the US. 

[Jojo92122 1,924]

That's not a grey area.  You would be working without authorization for a US employer.

 

The standard has nothing to do with actually getting paid.  You are not authorized to do any work that is NORMALLY paid for.  Even if you get zero, you would not be authorized to do anything that someone else MAY get paid for. 

 

If prepaying was a way to avoid unauthorized work, then many people would be doing it. 

 

Notice the title of your post "Paid work before EAD."  Nothing grey about that.

Edited June 1, 2017 by Jojo92122

[geowrian 22,337]

My take is that it would not be permitted. The issue isn't the payment....it's the work. Even unpaid jobs are not permitted. The standard I always go by is whether or not the activities are part of the services that a US worker would regularly fulfill.

 

The gray area, IMHO, is when the work is performed remotely for a foreign employer.

[Loki_Go 126]

As others have said no, this plan you have would most certainly be illegal.

 

[millefleur 5,046]

Not worth risking it. You've also stated that both you and your fiancee are financially comfortable, so it really makes no sense at this point. Just tell the employer you'll have to wait it out. Maybe you can apply for expedited work authorization down the road, but for now it's off limits it seems.

[Jordan8768 107]

It's completely illegal. You're working in the United States without the correct authorization. Also, even if you were doing this work overseas you would be expected to pay the necessary US taxes for conducting this work. 

[Jojo92122 1,924]

1 minute ago, Jordan8768 said:

It's completely illegal. You're working in the United States without the correct authorization. Also, even if you were doing this work overseas you would be expected to pay the necessary US taxes for conducting this work. 

Not true.  Not how international taxes works.

[A'n'L 735]

It is illegal for a US based employer (in this case either your client or yourself as a US based freelancer) to employ the services of an individual that is not work authorized in the US. So, no, you can't do this. 

[Jordan8768 107]

10 minutes ago, Jojo92122 said:

Not true.  Not how international taxes works.

Well regardless it's  still illegal. 

[glmg21 330]

3 hours ago, Ontarkie said:

I'm going to say no you cannot do it. If you didn't do the work your client would have to hire a USC or someone authorized to work in the US. 

 

3 hours ago, Jojo92122 said:

That's not a grey area.  You would be working without authorization for a US employer.

 

The standard has nothing to do with actually getting paid.  You are not authorized to do any work that is NORMALLY paid for.  Even if you get zero, you would not be authorized to do anything that someone else MAY get paid for. 

 

If prepaying was a way to avoid unauthorized work, then many people would be doing it. 

 

Notice the title of your post "Paid work before EAD."  Nothing grey about that.

 

3 hours ago, geowrian said:

My take is that it would not be permitted. The issue isn't the payment....it's the work. Even unpaid jobs are not permitted. The standard I always go by is whether or not the activities are part of the services that a US worker would regularly fulfill.

 

The gray area, IMHO, is when the work is performed remotely for a foreign employer.

 

3 hours ago, Loki_Go said:

As others have said no, this plan you have would most certainly be illegal.

 

 

2 hours ago, A'n'L said:

It is illegal for a US based employer (in this case either your client or yourself as a US based freelancer) to employ the services of an individual that is not work authorized in the US. So, no, you can't do this. 

Thanks for your feedback all. I should clarify that this work would be for a client based solely in Europe, with whom I have held a relationship for several years. There are no business ties between the company and the United States.

 

My question is if I can complete work for them, having already been paid upfront, while living in the US?

[Jojo92122 1,924]

If the client has zero to do with the US, then you are in a grey area.  This means the client is not a US person or citizen and has zero business in the US.  

 

If the client is a US person or citizen, or has business in the US, then it's not a grey area.

 

In addition, you will be required to declare this income on your US tax return since you will be earning it by working in the US.

[Loki_Go 126]

Oh, then you're in that grey area (like I was). I've been working here in the US for Canada since the second day I arrived... almost 2 years ago now.

 

I don't think it matters how your European company pays you; you'll be declaring this money as foreign income on your taxes (and as I've recently found out, you'll be paying more taxes than if you worked/lived in the same country)

 

[A'n'L 735]

3 hours ago, glmg21 said:

 

 

 

 

Thanks for your feedback all. I should clarify that this work would be for a client based solely in Europe, with whom I have held a relationship for several years. There are no business ties between the company and the United States.

 

My question is if I can complete work for them, having already been paid upfront, while living in the US?

It really doesn't matter how and when you are paid. What matters is if there is a US employer involved. If you're employed by a foreign company, I will say you're good. However, you're speaking of a "client" - which makes me think you're a self-employed freelance worker? That would in this case not be legal.