Gurus Pls Help - AC 21, Paystub Issue

fira

Registered Users (C)
I have to use AC21 and change my employer as I lost my job. The new employer is a small company and will be paying me simply with company check. Check will say that this is salary for this and this time period. But, there will not be any paystub attached to it.

I am concerned that how can i show paystubs to BCIS, if ever asked. Is it ok to get a simple check as salary or should I ask employer to give me paystub also?
 
Originally posted by fira
I have to use AC21 and change my employer as I lost my job. The new employer is a small company and will be paying me simply with company check. Check will say that this is salary for this and this time period. But, there will not be any paystub attached to it.

I am concerned that how can i show paystubs to BCIS, if ever asked. Is it ok to get a simple check as salary or should I ask employer to give me paystub also?

Company Check along with pay details is the Paystub, unless it is just printed on a plain paper and the Check is an personal check.

Others, your comments/experiences please.
 
OmgV,

You are right. But what I am saying is that the employer will just write check to me. There will not be a part about pay details. They will simply give me check with any details about deductions.
 
Fira,

It seems this employer will issue you a 1099 at the end of year instead of W2. In that case you are responsible to pay your own taxes. You may want to check with a CPA what taxes you will be liable to pay under these circumstances because the employer will not be paying his portion of SS, FED and Medicare taxes.
 
But per other discussion employee on 1099 will not considered as permanent employee.

fira
What your employer is saying about taxes. Is he cutting the taxes ?whether you are going to get W2 or 1099?
 
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tammy2

yes that's right. i have other friends (not in gc queue) who get paid this way when the employer does not want to be bothered with taxes or other benefits. it works out better (for the employer) if the individual is an independent contractor rather than an employee.
 
This is interesting. I always heard that companies prefer W2s over 1099s.

Aslo I heard somewhere that if the 1099 employee does not pay the Taxes , the employer is still liable for those.
 
I think employer is responsible if the contractor does not pay the taxes and that is the reason most companies write imdemnification clauses in their agreement. To avoid these kind of problems, some companies seems to prefer W-2.

However, the following makes the case for 1099's :
1) most companies lose the benefits of small employers if the employee count increases to more than 50. So, if they don't want to grow they might prefer 1099 to keep their employee count below 50.
2) The other reason for 1099 is that they should not discriminate between employees and they have to provide the medical benefits and other benefits.
3)Moreover, if one is an employee they have to pay his salary irrespective of the fact they got money from the Customer. In case of 1099, they can avoid payment in case they have not been paid by the Customer.

-rajum
 
rajum,

there is a distinction between an individual and a company.
it is mandatory for a company to issue 1099 if it has paid an idividual $600 otr more in a year. this does not apply if the payments are made to a company. whatever the reason for issuing 1099, once the indicidual has accepted this arrangement he is liable to pay taxes directly to irs because the payer, in order to show this as a deductible expense has to report this to irs referring to receiver's SS no. now, if teh individual decides not to pay taxes on this amount there is always a chance to get caught because irs is informed by the paying company.

in any case, this does not seem relevant to thsi case because ins has to figure out his compensation package.

in case of 1099, paying company is never responsible for paying taxes. once they inform irs, their part is over.
 
I will be W2 employee. Employer will be withholding taxes and will issue W2 at year-end. They will pay by business checks and there will not be tax deduction summary attached with check.

What do u think about it?
 
Fira, you should be okay

Fira,

I was on H-1 for such a company a while back and I remember replying to an RFE for H-1 Extension with copy of paycheck ( company check) along with company letter and copy of quarterly tax statement of the company instead of Paystubs. that was like 3-4 yrs back for an H-1 RFE, Of course BCIS is changing by the day and you can never tell.

hope this helps!
 
Ask him to give the break up. You can prepare your own pay slip. ( Gurus will it work?)Check whether he is paying the tax withheld properly. Last year one of my friend had similar problem. Finally my friend paid $1500 extra for employer part. Since he had some kind of problems with his H1 he could not ask his employer.

Have you spoken to any attorney about this?
 
I think everyone is forgetting the most important issue.
The rfe always ask for a employer letter that should state that they hired him on a permanent basis just not as a contractor and this is very important. So please make sure that they give that kind of letter and also the pay stub issue . . .
 
Yes, gcgcgc there is no problem in getting employment letter from them.

The only issue is, what to do IFF rfe comes.
 
Your company is definetly not coming straight forward.

They may be doing payroll themselves but why they wont use a professional payroll company like ADP or PAychex is difficult to understand(for ex ADP only charges 30$ a month to run the payroll and 2$ per check per employee).

If they are doing themseleves, they should still be able to provide the monthly deductions on the company stationary.

Companies like this are a pain in case INS comes back with RFE..

goodluck
 
Originally posted by fira
I have to use AC21 and change my employer as I lost my job. The new employer is a small company and will be paying me simply with company check. Check will say that this is salary for this and this time period. But, there will not be any paystub attached to it.

I am concerned that how can i show paystubs to BCIS, if ever asked. Is it ok to get a simple check as salary or should I ask employer to give me paystub also?

Anybody received RFE under such circumstances?
 
I have the same issue

Company is paying me on w2 half the time, and just giving me the check half the time of the year.

I dont know what to do if i get rfe. I will submit the copies of the check and the part w2 from the same companies.


Also Lawyers talk in both ways, that one cannot work on 1099 on EAD and he also asks me that keep the copies of the companies check.


can't understand.



Hope BCIS accepts that.
 
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How will you get W2 for the current year

If you have got an RFE this month for the paystub or whatever, how would you provide the BCIS with latest W2. I think they want to verify the current status be seeing the paystub and the taxes reflect whether we have been working or not.
 
Well I was just able to talk with my lawyer. He said that a simple company check is ok as pay-check. It doesn't make a difference if the paystub (details of tax-deductions) is provided or not.

But he emphasized that DO MAKE A COPY OF THE CHECK BEFORE YOU DEPOSIT IT.
 
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