Remote work for non-US employer while living in US

[ir1cr12021 6]

Hello all,

 

This week, I'll fly to the US on my IR1 immigrant visa. When it's stamped on arrival, I'll become a LPR.

 

I have had almost 6 months to prepare for my move to the US, but certain things have been impossible during the pandemic.

 

e.g. I have been unable to gather my personal items from different addresses, and to visit relatives/friends I'd like to see before moving, due to COVID restrictions.

 

But I am entering the US this week because, if I don't, my immigrant visa will expire and I will need to repeat the medical exam and embassy interview.

 

I would like to leave the US to gather my personal items and visit relatives/friends. I am also continuing to work remotely for a non-US employer as I have not yet found work in the US, and am not sure if this complicates my situation.

 

I am writing to ask whether a re-entry permit would be acceptable in my situation. And, if so, if you have any advice on how I should explain my "purpose of trip". Any other sage advice is also welcome.

 

(I am not entirely sure how long I will need, and think it would be better to express my intention to return without simply leaving, particularly if I'm gone for more than 6/12 months.)

 

Thank you very much in advance!

[Boiler 45,541]

The UK is well on the way to open up, I would imagine by June you will be able to pop back for a few days to grab your stuff and say your goodbyes.

 

Currently I am not sure the lockdown rules in the UK allow a visit?

 

Now the job could well complicate matters but from a tax perspective, check with your US CPA and your Employer that they are OK employing someone resident in the US.

 

 

[ir1cr12021 6]

4 minutes ago, Boiler said:

The UK is well on the way to open up, I would imagine by June you will be able to pop back for a few days to grab your stuff and say your goodbyes.

 

Currently I am not sure the lockdown rules in the UK allow a visit?

 

Now the job could well complicate matters but from a tax perspective, check with your US CPA and your Employer that they are OK employing someone resident in the US.

 

 

Thank you! I suppose this is a hypothetical plan if travel is possible in the coming months. 

 

As for the job, I'll kick up a separate thread to see if I can explain that situation a little better!

[Boiler 45,541]

My understanding is that you can migrate, it is coming back that is the issue, then all the hasse with things like health insurance etc.

[ir1cr12021 6]

Hi all,

 

This week, I'll fly to the US on my IR1 immigrant visa. When it's stamped on arrival, I'll become a LPR.

 

I will be working remotely for a non-US employer based in Europe, and will be paid into a non-US/European bank account. 

 

I have spoken with my employer who is happy for me to work remotely from the US.

 

My question is: how do I make sure that I correctly file my taxes on this source of income? 

 

I want to make sure that I'm doing everything correctly from a US tax perspective. 

 

Many thanks in advance!

[Wuozopo 4,293]

Get off your foreign tax role when you move to the US. You pay tax to the country where your reside no matter the employer or where you earn or where deposited. Your employer should get an Employer Identification Number (EIN) from the IRS and withhold US tax, Medicare, and Social Security from your pay and submit online to the IRS each paycheck.At the end of the tax year he will issue you a W2 wage statement for doing your US taxes. 

 

Or he can treat you as a self-employed contractor and thus not have to hold anything out of your check. He would still get an EIN so he can issue you a 1099 wage statement at the end of the year.  You would  be responsible for paying in your own tax, Medicare, and Social Security with Quarterly Estimated Tax Payments. 

Edited March 1, 2021 by Wuozopo

[Wuozopo 4,293]

International EIN Applicants

If you have no principal place of business, office or agency, or legal residence in the United States or U.S. Territories, you're considered an international applicant, and you can only apply for an EIN as follows:

By Telephone - If you're an international applicant, you may call 267-941-1099 (not a toll-free number) 6 a.m. to 11 p.m. (Eastern time) Monday through Friday to obtain an EIN. You must be authorized to receive the EIN and answer questions concerning the Form SS-4, Application for Employer Identification Number PDF. When applying by telephone, it's helpful to complete the Form SS-4 before contacting the IRS. An IRS representative will use the information from the Form SS-4 to establish your account and assign you an EIN.

By Fax or Mail - You can apply by fax or mail as indicated above.

[SteveInBostonI130 3,459]

If you can, I would advise you to stay in the US to get your residency in order here.   Get your SSN card, a DL from your state, and physical greencard.  That last bit might take a while.  In our case my wife's greencard arrived in about 40 days, but it could take as long as 120 days.

 

If you stay 30-60 days, you should get most of the things sorted.  Then head back to close out your affairs.  You can remain outside the US for up to a year, but I would recommend just a few months.  The purpose of the IR1 and LPR status when you arrive in the US is to be a permanent resident.  A few months visit back home is fine, but longer stays overseas can make CBP/USCIS question your status.

[Ban Hammer 13,349]

related topics merged

[Duke & Marie 1,389]

8 hours ago, Wuozopo said:

Get off your foreign tax role when you move to the US. You pay tax to the country where your reside no matter the employer or where you earn or where deposited. Your employer should get an Employer Identification Number (EIN) from the IRS and withhold US tax, Medicare, and Social Security from your pay and submit online to the IRS each paycheck.At the end of the tax year he will issue you a W2 wage statement for doing your US taxes. 

 

Or he can treat you as a self-employed contractor and thus not have to hold anything out of your check. He would still get an EIN so he can issue you a 1099 wage statement at the end of the year.  You would  be responsible for paying in your own tax, Medicare, and Social Security with Quarterly Estimated Tax Payments. 

Needless loss of employment at a time when finding work is really hard...she can file worldwide income, not just US income.. and regardless of if she quits her job in the uk or not, she’ll still need to report worldwide income since the UK and US tax years don’t align.. 

Tax treaties between the UK and US will ensure she dose not have to pay taxes twice and that appropriate dues go to each relevant country..  

 

It doesn’t matter if she works remotely for a UK company in the US.. and since the IR1 stamp will be in her passport she’s fully authorised to work for the UK company using her NIN there to pay taxes, while awaiting her SSN here. If the UK company doesn't mind her working remotely, she could happily continue to do this indefinitely or at the very least until he has resolved what she needs to do back in the UK, returns to the US and finds alternate employment.. 

 

to OP... find you a descent accountant at this end to help with Worldwide income tax returns once you get settled..jobs are hard to find, if your employer is willing to let you work remotely, I’d accept that invitation and go worldwide income until I could find a suitable employer here.

Edited March 2, 2021 by Duke & Marie

[Mollie09 1,543]

13 hours ago, Duke & Marie said:

It doesn’t matter if she works remotely for a UK company in the US.. and since the IR1 stamp will be in her passport she’s fully authorised to work for the UK company using her NIN there to pay taxes, while awaiting her SSN here. If the UK company doesn't mind her working remotely, she could happily continue to do this indefinitely or at the very least until he has resolved what she needs to do back in the UK, returns to the US and finds alternate employment.. 

The moment OP enters the US as a Permanent Resident, the employer has to pay them as a US resident, which means getting an EIN and paying based on SSN.

[Duke & Marie 1,389]

40 minutes ago, Mollie09 said:

The moment OP enters the US as a Permanent Resident, the employer has to pay them as a US resident, which means getting an EIN and paying based on SSN.

Agreed, but that doesn’t mean she needs to quit her employment especially if she’s planning on returning to the uk for several months... she can continue to work for them whilst transitioning 

[Wuozopo 4,293]

37 minutes ago, Duke & Marie said:

Agreed, but that doesn’t mean she needs to quit her employment especially if she’s planning on returning to the uk for several months... she can continue to work for them whilst transitioning 

She plans to continue that work. Her question was about how does income tax work when the employer is foreign. She seems to have abandoned this thread. No comments or questions since she made her two posts. 

[ir1cr12021 6]

5 minutes ago, Wuozopo said:

She plans to continue that work. Her question was about how does income tax work when the employer is foreign. She seems to have abandoned this thread. No comments or questions since she made her two posts. 

Still here, just processing! Will reply now.

[ir1cr12021 6]

19 minutes ago, Wuozopo said:

She plans to continue that work. Her question was about how does income tax work when the employer is foreign. She seems to have abandoned this thread. No comments or questions since she made her two posts. 

To clarify: I'll have to keep my non-US employer and work remotely until I find something!

 

So, if I'm right, my options are:

 

1. My employer gets an EIN, pays the IRS tax/medicare/social security each month, and gives me a W2 at the end of the tax year.
2. My employer gets an EIN, pays me everything/I pay everything myself, and gives me a 1099 at the end of the tax year.
(And, in either case, consult an accountant on worldwide income tax returns when I arrive in the US.)

 

And what happens if my employer does not get an EIN? Does this mean I will declare this income on my tax return without a W2/1099, and pay double tax? Thank you again for the advice.