Salary dilemma

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yagcs

Registered Users (C)
Here's my dilemma. I applied for GC in 2001 through my company and the labor was approved with a base salary of $x,000pa.
Due to rate cuts my employer couldn't pay $x,000pa and could afford only$(x-y),000pa; Since I was worried about the I140 approval, I offered my employer to pay $y,000pa from my pocket. He agreed to it and has been paying $x,000pa
My I140 got approved after getting an RFE about company financials. Since I'm atleast one year away from I-485 approval , I don't want to continue to pay $y,000pa from my pocket (and lose taxes on that).

Is it a good idea to take the cut till the vicinity of my approval date and get only (x-y),000pa for now? I plan to start paying from my pocket and receive $x,000pa when the processing date nears my ND.

Experts please advise

What kind of RFE's do we get in the I485 stage?

Thanks,
yagcs
 
You don't have a dillemna but if you are not careful, you may have fraud on your hands. I would suggest you consult a lawyer to straighten the situation.

If you are on an H1, the LCA specifies how much you are to be paid. If it is less and you are contributing to make it the higher amount, your employer would have had to fiddle with his books. That's something frowned upon by the IRS. DOL doesn't like it, either. Nor BCIS.

If there is an audit on the firm, they may come after you as well. It's not a problem that you will pay or have paid (you did not specify a timeline) more taxes than due. The problem is your signature to the declaration "under penalty of perjury..." when you turn in or have turned in the 1040.

If that hits the fan and there is an RFE... it may turn out to be opening Pandora's Box. So do consult a lawyer before things turn sour.
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I am not a lawyer nor an accountant and cannot dispense any legal or financial advice.
 
Originally posted by esseyeb
You don't have a dillemna but if you are not careful, you may have fraud on your hands. I would suggest you consult a lawyer to straighten the situation.

If you are on an H1, the LCA specifies how much you are to be paid. If it is less and you are contributing to make it the higher amount, your employer would have had to fiddle with his books. That's something frowned upon by the IRS. DOL doesn't like it, either. Nor BCIS.

If there is an audit on the firm, they may come after you as well. It's not a problem that you will pay or have paid (you did not specify a timeline) more taxes than due. The problem is your signature to the declaration "under penalty of perjury..." when you turn in or have turned in the 1040.

If that hits the fan and there is an RFE... it may turn out to be opening Pandora's Box. So do consult a lawyer before things turn sour.
---
I am not a lawyer nor an accountant and cannot dispense any legal or financial advice.
Click to expand...

guys, this is not as complicated as it sounds in my first post. Let me put it in another way.

my LC is approved for 60,000. But my employer is getting 52000pa from the client. I asked him to pay me at 60000pa till my GC gets approved. The difference of 8000pa which I give, is more of a collateral. He is not doing any fraud as booking it as revenue or something. He is merely keeping that 8000 in case if I run away after my GC gets approved.

Tomorrow If I get a client who pays 70,000, my employer will return those 8000 to me(when I have worked enough hours). But If I leave the company before, I only lose the tax which I had paid on those 8000.

yagcs
 
Ahh.... sounds familiar. I went through something like this 15 years ago.

Five years and $80,000 later, when it came time for collect, it was "What money?"

This was followed by "There's no way to justify the accounting to pay, since legally you were already paid!"

Even faster still: "So sue me for it!"

It was an expensive lesson to learn, but learn I did: friends are friends but business is business. Go see a lawyer.

All the best, guy.

;)
 
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