Working on 1099 after GC approval

[Naveen111]

I got my GC approved on 04/04/05. I requested a raise in my pay from my employer as he hasn't given anything from past 5 years. He says he cannot give any raise, and said I can work as Independent consultant on 1099?

1)Will Working on 1099 cause any problems for citizenship/naturalization?
2)If I work on 1099 I think I may get 50% more what I am getting currently.
3)How much amount of extra taxes should I pay?

Will it be advisable to work on 1099 couple of months after your GC approval?

Thanks!

Naveen

 

[lohith]

Not per se, but you of course were supposed to work as employee. That's what your GC is based on.

New Ac-21 allows it if you are in same profession based on orignal 140. see Q8.

Changing that 2 months after getting the GC may be too short.

It's just a speculation, again about 'intent'
Once, 485 approved, there is no reference to 'time-period' to be with orig 140 sponsor. Ac-21 always talks about 'being in same profession' even if 140 pending(approvable by it's initial merits) it's even less than 180days 485 pending.

Ac-21 gives big relief on 'Intent' issue if one is in same profession based on orig 140/LC.

 

[lohith]

AC21 has nothing to do with things after I-485 approval. It only applies to pending I-485s.
AC21 does not apply once an I-485 is approved. So, for this case, it does not matter what AC21 says.
AC21 does not apply once an I-485 is approved...

Here is a case got approved solely based on AC21. That means, the person is not with 140 sponsor when USCIS approved his 485 case based on Ac21 portability (independent employment in same profession).

According to your speculation, AC21 doent apply on approved cases, then USCIS has to revoke approved 485 few minutes ago, which is self-coantradictory in nature.

 

[pralay]

3)How much amount of extra taxes should I pay?

Unitednation, one of the members in this forum can give some idea as he himself is an accountant. It's difficult to provide a ballpark number about extra taxes, because when you become self-employment there are lots of variables. For example,

1. work location (you can deduct part of your rent/mortgage if you are working from home - including utility bills)
2. commute expense (you can deduct depreciation of car, gas price etc, if you are using for business)
3. business expense (food, equioments etc)
4. various credits and deductibles based on your type of works and your home/business state (including your medical insurance premiums).

So even though you have to pay more taxes, various credits/deducitbles/expenses can bring down your income tax significantly lower. As a thumb rule, as you are not paying fica taxes, you need to pay 150% time more income tax (quaterly).

 

[TheRealCanadian]

Your GC is based on the intent to work as employee for the company. Changing that 2 months after getting the GC may be too short.

Generally speaking, USCIS is recognizing that 1099 is more of a tax situation than a meaningful employment change. If the only change in my employment conditions is that I move from W-2 to 1099, I don't see there being a problem. The only place where USCIS explicitly wants a W-2 is an H-1B.

 

[pralay]

Here is a case got approved solely based on AC21. That means, the person is not with 140 sponsor when USCIS approved his 485 case based on Ac21 portability (independent employment in same profession).

According to your speculation, AC21 doent apply on approved cases, then USCIS has to revoke approved 485 few minutes ago, which is self-coantradictory in nature.

This is not speculation, but the law. AC-21 applies only to pending I-485s. Period. That's the actual text of the law. I suggest you read it.
When the I-485 gets approved, the person has to have the good faith intent to work for the then employer. Period.
There have been tons of posts about that here. I am not going to rehash all of that. Just let me repeat: AC-21 does not apply once an I-485 is approved.

I can sense a cross talking here. Let me explain (if I can at all). I think both are correct.

Yes, May 12th on AC-21 (Q&A #8) mentioned that I-140 portable to self-employment provided original I-140 is valid and legitimate (that means employer's intent must exist when I-140 is filed and pending) and the self-employment job is "same or similar". However, it addresses only portability issue when I-485 is pending. However, it does not address intent issue. I got my GC today and next day I will decide to be self-employed because "AC-21 says I can do so" - that a wrong interpretation from Q&A #8 of that memo.
On the other hand, I quit my original I-140 sponsorer and decide to be self-employed after 180 day of pending my I-485 - that's can be a valid I-140 porting using AC-21.
Bottomline, portability and intent are two different animals and Q&A in memo describes only portability.

 

[lohith]

On the other hand, I quit my original I-140 sponsorer and decide to be self-employed after 180 day of pending my I-485 - that's can be a valid I-140 porting using AC-21.

I do not understand, How come portability and intent are different? if someone is 'ported' means implicitly underlying 'intent' changed, right?


Well, in self-employment,

1. Portability is 'same/similar profession'; ok
then, what is 2. Intent ?
intending to work for himself (self-employment) on permanent basis? i.e. if one's I-485 approved on 'self-emp'/AC21 basis, can't he change his 'own-intent' to work for someone else in same profession(porting) ?

 

[Pork Chop]

Here is a case got approved solely based on AC21. That means, the person is not with 140 sponsor when USCIS approved his 485 case based on Ac21 portability (independent employment in same profession).

According to your speculation, AC21 doent apply on approved cases, then USCIS has to revoke approved 485 few minutes ago, which is self-coantradictory in nature.

when you invoke AC-21 to change employers, the new employer "inherits" the i140 from your old employer, becoming its new owner, and - in effect - your sponsor. so when your 1485 which is based on that i140 is approved, your current employer at the time of such approval is your sponsor of record, and, as such, you are expected to work for them to demonstrate your "permanent" intent. thus, there is no contradiction.

postscript:
upon approval, your i140 and i485 are "consumed". anything that was associated with either one of them is also therefore not available anymore. in the case of i485, your EAD and AP are invalidated; in case of i140, the portability under AC-21 law is no longer available.

 

[pralay]

I do not understand, How come portability and intent are different? if someone is 'ported' means implicitly underlying 'intent' changed, right?


Well, in self-employment,

1. Portability is 'same/similar profession'; ok
then, what is 2. Intent ?
intending to work for himself (self-employment) on permanent basis? i.e. if one's I-485 approved on 'self-emp'/AC21 basis, can't he change his 'own-intent' to work for someone else in same profession(porting) ?

They are different because they are different. Just throw away the word "self" from "self-employment" from your head and replace it with a company name. Is it OK to quit original sponsorer company A immediately after getting GC and join company B? If you think it's not OK, then it's not OK for self-employment too.

 

[TheRealCanadian]

Is it OK to quit original sponsorer company A immediately after getting GC and join company B? If you think it's not OK, then it's not OK for self-employment too.

Although I'm certain JoeF will jump on me for this, at least in the context of a TN USCIS does NOT consider the 1099 self-employment, and still requires a TN for a 1099 relationship with an employer. As far as they're concerned, 1099 vs. W-2 is a taxation arrangement and does not change the underlying relationship. This avenue may explain the recent allowance of "self-employment" in the latest Yates memorandum.

 

[pralay]

Although I'm certain JoeF will jump on me for this, at least in the context of a TN USCIS does NOT consider the 1099 self-employment, and still requires a TN for a 1099 relationship with an employer. As far as they're concerned, 1099 vs. W-2 is a taxation arrangement and does not change the underlying relationship. This avenue may explain the recent allowance of "self-employment" in the latest Yates memorandum.

Following your argument, being self-employment while working with same employer-becoming-client is not an AC-21 case at all, because both parties have intent to keep the "relationship" (as specified in LC + I-140). If that was the case then the topic of "self-employment" would be part of AC-21 only on condition .

 

[ramihan]

I wonder: did any of these scenarios have any problem in naturalization? Please let me know

 

[ramihan]

I got my GC approved on 04/04/05. I requested a raise in my pay from my employer as he hasn't given anything from past 5 years. He says he cannot give any raise, and said I can work as Independent consultant on 1099?

1)Will Working on 1099 cause any problems for citizenship/naturalization?
2)If I work on 1099 I think I may get 50% more what I am getting currently.
3)How much amount of extra taxes should I pay?

Will it be advisable to work on 1099 couple of months after your GC approval?

Thanks!

Naveen

I wonder: did any of these scenarios have any problem in naturalization? Please let me... This is super important

 

[ramihan]

I wonder: did any of these scenarios have any problem in naturalization? Please let me... This is super important