11 % Employment tax

[SEP_RD]

I heard that the companies have to pay a 11% employment tax for employees who are on H1B.

My question is what happens after a employee gets his GC. Does the employer still has to pay this tax?

I am asking this question bcos if the answer is 'no' then maybe we employees who got the GC can negotiate with employers to pass on that 11% amount to us which they were initially paying to the IRS.

Please send your comments regarding this if anyone has any information on this.

Thanks!

 

[mplbob]

I think what you are talking about is the special clauses for paying "benefits" in to your SS account. India has a special tax treaty so that for non PRs payment is not made in to SS account since after 6 years they go back and don't get that money. SS can be paid only PRs living here or citizens retired and living overseas. So the Indian govt. negotiated a tax treaty. Similarly Thailand has also some treaty. This is causing a pain in the butt to fill forms such as I-9 for non PRs. When you become PR, you will have filled new I-9s and money will be put in to your SS/medicare accounts. However, you won't get any extra cash in hand!

 

[mplbob]

I don't know if this rule applies to H1. But it does apply to F1. I recently hired two, and one was from Thailand and one was from India. The I-9 form for both of these nationals was filled differently because of the tax treaty.

If you want to know more I can look up the information on the form to see what clause it referred to.

The US has several tax and SS treaties not all of which are reported on the SS web site. My country has a reciprocal treaty where the number of years of my employment is counted in my home country for determing my SS benefits on retirement. Simililary for purposes of the 10 years that are needed for medicare, I can count my home country worked years of employment up to certain number of years.