Entered US as L1B and employer paying me as B1

[saibabu]

Hi All,

1. My port-of entry is in L1B but i am not part of My company US payroll,Company paying me in India .I am being provided perdiam like B1 employee
Issue: Will it effect any of my next visit to US
2. Do I need to file the tax for this Fiscal year as I am in L1B?
Issue: I don't have any pay stubs to file the tax
3. I have SSN also
Issue: I am not filing any Taxes?

Thanks,

[shervin143]

You need to get paid in U.S and have U.S pay slips. You are suppose to get a W2 from your employer and file your tax returns.

[saibabu]

Hi,
I am piad in Indian salary and Perdiam in USA.But my employer says its perfectly legal as you are paying tax in India and running india payroll.
Is this correct?
Thanks,

[shervin143]

Here is my understanding on the whole L1 status. L1 is called Intra company transfer. An employee deputed to work in US office of the same company. They have to remove you from payroll in your home country and can run only basic pay and make you salary based employee in the US office. If not, there is no point in issuing you an SSN by the SSA office. L1 cannot work here until employee is in the US payroll. If you are in US payroll, you have to pay tax. Consult a good immigration attorney if you have more questions.

Hi,
I am piad in Indian salary and Perdiam in USA.But my employer says its perfectly legal as you are paying tax in India and running india payroll.
Is this correct?
Thanks,

[saibabu]

Hi,
Thanks for your reply..They replied and confirmed that if you are on India payroll,then you are paying taxes in India and you do not need to pay taxes in the US. This will not affect your future standing with the US as it is perfectly legal.
But i am really doubt in this.if i am legally working here in US and not paying tax so i feel it will effect my next port of entry.Can you please guide me how can i sort this.

Thanks,

[txh1b]

Your employer is engaging in illegal activity. Like already suggested, you need to be on the US payroll of the company and a US employee. In fact, they need to terminate you in your home country.

Many good and reputed companies follow this procedure.

[abhayg4]

Hi OP,

Here is my view which matches with Shervin /txh1b view's:

L1 is called Intra company transfer. An employee deputed to work in US office of the same company.

They have to remove you from payroll in India and can run only basic pay and make you salary based employee in the US office and you will get a new US employee id, SSN etc. L1 cannot work here until employee is in the US payroll. If you are in US payroll, you have to pay tax.

Normally in US, employees will have daily, weekly, bi-weekly or upmost monthly paycheck.

One should also know that there is a minimum amount of salary (what they mention in your L1 petition/LCA) to be paid here. They have to pay that at least minimum and cannot pay you only your per-deim.

Also you should not be double taxed, i.e. in US as well as India. US govt clears knows this and I believe they advise most companies to pay full in US and advise not to tax employee in other country, however in India you will have the basic pay which may come below the tax brackets.

Most companies earlier have this idea of showing a huge amount in Indian rupees (like converting a small portion of money what you are suppossed to get here) and paying very less in US.

Also find out from your collegues who are in L1 in US (from the same employer) ......

Thanks and regards,
Abhay

[saibabu]

Hi Everyone,

Thanks for everyone..
If my employer sends back to india with 90 days tenure here in USA with out paying me here,will it effect me next portof entry as i didn't paid any tax for previous visit .
And if my employer agree to run US payroll after 3 months tenure here will that be Ok?
Please give me sugession and your valuble information.

Thanks,

[shervin143]

I think your question was clearly answered. You need to be in U.S payroll from day one on L1 status and your should have pay slips and W2 for the period in L1 status and you should file the taxes on the same. If not, you could face issues on your next visa interview or while filing petitions with USCIS in the future.

Hi Everyone,

Thanks for everyone..
If my employer sends back to india with 90 days tenure here in USA with out paying me here,will it effect me next portof entry as i didn't paid any tax for previous visit .
And if my employer agree to run US payroll after 3 months tenure here will that be Ok?
Please give me sugession and your valuble information.

Thanks,

[praki]

It is absolutely fine under L1 blanket

Hi , as far as L1b is concerned it is legal to pay perdime if the employer surely knows that your tenure in USA is not exceeding 12 months .

If the tenure is below 12 months then you are entitled for tax exemption .

[txh1b]

Hi , as far as L1b is concerned it is legal to pay perdime if the employer surely knows that your tenure in USA is not exceeding 12 months .

If the tenure is below 12 months then you are entitled for tax exemption .

Incorrect. There is no 12 month tax exemption. Read about L1 reform act of 2004. Per-diem can be paid on top of the US salary not in lieu of the US salary.

[rohitsingh79]

Some companies in india use two way to send employee to US on L1 Visa.

Short duration (< 11 months)
Employee are paid salary in India and daily allowances while in US but US pay stubs are provided showing them. Tax is deducted but when they file tax return, tax is returned back by US government. I think this is because of they are paying tax in india

Long Term (> 11 months)
Regular intra company transfer from India to US. No salary and perk is India and employee gets all pay from US division of the company.


My company sends employee on both types and i see no issue so far with any of the employee yet BUT I personally don't see first option as good one as ultimately they are saving all the taxes to be paid to US government.

I am IT professional and not a legal advisor so can't comment if first option is really legal or Not.

Thanks