Independent Consultant on EAD

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freaked

Registered Users (C)
Hi Friends,

As some of you know, I've been laid off recently and my I-485 has been pending for almost 18 months. Not to go into the issue of delays, I got the oppurtunity to do a project for someone. Is it legal to do it as an independent consultant? I know that I need to be with an employer when the GC is approved, but I'm planning to do this project while I continue my job search for a full time permenent position. Any advice is greatly appreciated.
Thanks!
 
You cannot be self employed..

It is , you can work on a W2(employee) but not as a Contract 1099(independant contractor) on an EAD. You will have to find an 'employer' if only for the payroll purposes.. You will find several 'employers' willing to do your billing and generate a payslip for a piece of the pie--normally about 10%..
Remember if the billing is $100, FICA taxes are 7.65% X2 (employer and employee) =$15.30
..10% cut for your employer =$10.00
Net before State/Federal Income tax = $74.70.

Or you can set up a company in your spouse's name and be employed by that company.. not recommended.
 
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It is , you can work on a W2(employee) but not as a Contract 1099(independant contractor) on an EAD.
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: Total baloney!

You can work as an independent contractor - in fact I am doing that now. The only point that you should keep in mind is that you cannot show this job as proof of having been employed in the same/similar field if you get an RFE for 485. Just regard this as a part-time job to make some extra cash. If you get an RFE/Interview then you have to find a full-time job on W2. Also keep in mind that this could increase your annual salary beyond what was stated in your LC - I am not sure if that could be an issue during 485 adjudication but I myself am taking that risk.
 
are you sure?

Any of you guys asked a lawyer about this? My lawyer is not answering my questions. Apparently because I didn't pay the retainer after I got laid off.
One other question, can you operate a sole proprietorship while on EAD?
 
EAD allows you to start a company, do 1099 or W2 whatever you want .............
but for GC you need a same type of job.....If you get an REF you can't gie your own company name or 1099 as a proof of continuing in similar type of job.
continue looking for a permanent position and do whatever you want on EAD without any hesitation. As I said I have worked with two companies on 1099 on EAD
 
EAD allows you to start a company, do 1099 or W2 whatever you want .............
but for GC you need a same type of job.....If you get an REF you can't gie your own company name or 1099 as a proof of continuing in similar type of job.
continue looking for a permanent position and do whatever you want on EAD without any hesitation. As I said I have worked with two companies on 1099 on EAD

Question to Bakshi:
My annual salary is 18K more than what is mentioned in my LC. This is mostly because of increase in salary in my regular/full-time job and to a minor extent because of my additional income from working on part-time on EAD.

Do you think this could be an issue during 485 adjudication because of the difference between LC and actual income?
 
No I don't think so..... secondly just in case you get an REF you need to mention about the annaul salary given by your company and you need not include your part time income....INS determines everything based on your full time job. However when filling IT return you must show your all income.
 
Re: You cannot be self employed..

Originally posted by dusranazar
It is , you can work on a W2(employee) but not as a Contract 1099(independant contractor) on an EAD. You will have to find an 'employer' if only for the payroll purposes.. You will find several 'employers' willing to do your billing and generate a payslip for a piece of the pie--normally about 10%..
Remember if the billing is $100, FICA taxes are 7.65% X2 (employer and employee) =$15.30
..10% cut for your employer =$10.00
Net before State/Federal Income tax = $74.70.

Or you can set up a company in your spouse's name and be employed by that company.. not recommended.
Click to expand...

May I ask where you got this information? Could you provide some links to govt/authoritative sites that prove this? Even if you're working on a 1099 if you can prove in a court of law that a employee-employer relationship exists between you (the independent contractor) and your client in terms of hours worked, working at client facility under their terms, etc. and that the project is a long-term one, I'm confident that even in case of an RFE you should be fine. Of course, I'm not a lawyer, but please speak to your lawyer to confirm this. In the RFE's that people have posted in this forum I've seen people mentioning 1099. I have a strong feeling that INS is asking for a 1099 (Independent Contractor) or W-2, but most W-2 people mistake it for 1099-INT/1099-DIV/etc. Anyway, if any of you'll are able to get a confirmation on this from a competent lawyer I'd appreciate it.

Refer the IRS 20-point check list to test whether an employer-employee relationship exists. http://www.topechelon.com/recruiters/contracting/20point.htm

Thanks.
 
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