Question Related with EAD(I140 & 485 concurrent Filing)

G

gcrelated2003

Registered Users (C)
Hello All,
I have a question related with my EAD. I am presently on H1B and expecting my EAD anytime in DEC. I work on a Hourly Rate with my employer and my employer cuts around 9% of my rate as Employment Taxes. Is this something that i can avail once i am on EAD. I know that once i start using my EAD i will no longer be maintiaining a valid H-1B status. Is it advisable to do that?. Also what happens if i am laid off as i dont maintain any H-1B status what will happen to my status. I am sure people may understand where i am beding towards. Please write your experience/suggestion as 9% is a pretty handsome figure which i simple dont wanna give up to IRS. Thanks in advance.
 
gcrelated2003, I think the 9% cut is a very good deal that you are getting - most employers keep a margin and cut about 15-20%. Unfortunately, I don't think that there is any way around it - out of that 9%, 7.5% goes for Social Security taxes (another 7.5% of that goes from your paycheck, for a total of 15%). Add some more for medicare etc.

So, your employer is being fair to you. If you do take 100%, you will have to pay the complete 15% from your pocket, leaving you in a similar situation - this is even if you have your green card/citizenship/whatever.




Originally posted by gcrelated2003
Hello All,
I have a question related with my EAD. I am presently on H1B and expecting my EAD anytime in DEC. I work on a Hourly Rate with my employer and my employer cuts around 9% of my rate as Employment Taxes. Is this something that i can avail once i am on EAD. I know that once i start using my EAD i will no longer be maintiaining a valid H-1B status. Is it advisable to do that?. Also what happens if i am laid off as i dont maintain any H-1B status what will happen to my status. I am sure people may understand where i am beding towards. Please write your experience/suggestion as 9% is a pretty handsome figure which i simple dont wanna give up to IRS. Thanks in advance.
Click to expand...
 
ck510,

I think you misunderstood Employment tax with Employment cut.

gcrelated2003 company is paying 9% as employment taxes (which is low considering SSN taxes,medicare, insurance,...). I am sure his company must be taking additional cut on top of 9% employment taxes to be in this business.

If not, please share the company name and would love to switch to them.
 
Hello vxmehra98, ck510,
Thanks for posting your view. vxmehra98 is correct as my company charges $5 flat rate to my hourly rate from the client. The rest i have take care. I was under wrong impression that there is a Employment Tax that the Employer has to pay in order to hire a H1B holder which is not the case. So coming to EAD will not change my situation as far as the split goes. Thanks again for sharing your views.
 
vxmehra98,

thanks for clarifying... :)

gcrelated2003,

if the 9% includes decent medical insurance, please let us know the contact details of your company... maybe you can get a referral bonus or something if I and vxmehra98 join.. :D

(9% taxes + $5 cut is not that bad, relative to other firms out there - the best deal I can find is 20% for both taxes + cut, but this does not include medical insurance)
 
All are same...

Hi ck510,
Unfortunately, the 9% does not include the medical insurance. You have to pay extra $(3-4) for medical expenses.
I think it comes to around (25-75)%. THanks
 
yeah.... then the best option in your case is to wait until ur 140 clears (assuming it is not cleared) and then go free-lance using your EAD. the only potential saving would be the $5 cut that your employer takes. however, keep in mind that you may not get the same insurance rates as your employer may be taking advantage of group insurance. (its never easy, is it?)
 
Thanks ck510

Hello ck510, You are correct...with the calculations.
Also i had another question what happens if the person salary decreases during his GC processing.
Any updates will be greatly helpful..
thanks
 
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