Working remotely for a UK employer

[VisaDJ 16]

Hey guys, sorry for yet another question but I'm reading so much conflicting information about this, I thought i'd see what people think...

 

In short, I currently work almost 100% remotely for a UK company, who I am hoping will continue to employ me once I (fingers crossed) get my K1 visa approved and move to the US.

 

Two main questions I have about this:

 

1) If I am paid into my UK bank account when I first touch down in the US (before the AOS is submitted / approved), can I continue working for the UK company immediately? And, if so, what do I need to do to notify the appropriate US authorities about this? I've read about certain forms I would need to fill in that allow me to continue working for a foreign company (as long as there are no payments made into US banks), but have also ready that this is very much a 'grey area', which makes me nervous - I obviously do not want to fall on the wrong side of the law (or anywhere close to it!).

 

2) In the longer term working for a UK company, what do I need to do to cover all bases regarding being paid into a US bank account and file the appropriate taxes etc.?

Many thanks in advance for any help you can provide  

[Boiler 45,656]

First thing you need is EAD to legally work in the US. Tax affairs in the US you need a CPA.

[VisaDJ 16]

24 minutes ago, Boiler said:

First thing you need is EAD to legally work in the US. Tax affairs in the US you need a CPA.

Thanks!

 

So, on the form it says:

 

Family-Based Nonimmigrant Categories

A. K-1 Nonimmigrant Fiance(e) of U.S. Citizen or K-2 Dependent--(a)(6).

File Form I-765 if you are filing within 90 days from the date of entry. This EAD cannot be renewed. Any EAD application other than for a replacement must be based on your pending application for adjustment under (c)(9).

 

So, does this therefore mean that I can file for employment BEFORE I am married and file for the AOS (i.e. on day 1 of touching down in the US)? If so, that seems to solves any issues.

 

Thanks again for any responses!

Edited May 12, 2017 by VisaDJ

[Boiler 45,656]

You can certainly apply but it would take longer to get than it could be valid for so not much point.

[yuna628 9,680]

OP: Applying for an EAD before marriage and before AOS is not only costly, but virtually a waste of money. It would only be valid as long as the I-94 is and since it takes up to 90 days to arrive or longer, you can see how it's tossing a large amount of cash out the window. You can do it of course, but quite a gamble and a useless thing to do don't you think?

 

For a K1, the typical process, is to marry as soon as possible and file AOS as soon as possible. You can file for the EAD along with the AOS and the fee for the EAD will be waived. It's still going to take 90 days or longer, but at least you haven't paid a lot of money for something useless. You're also going to need an SSN, which is something you can get by going to the SSA within a few days of arrival if you'd like. This is really one of the reasons some people go for a spousal visa, rather than a K1 - because then you can work right away.

[VisaDJ 16]

26 minutes ago, yuna628 said:

OP: Applying for an EAD before marriage and before AOS is not only costly, but virtually a waste of money. It would only be valid as long as the I-94 is and since it takes up to 90 days to arrive or longer, you can see how it's tossing a large amount of cash out the window. You can do it of course, but quite a gamble and a useless thing to do don't you think?

 

For a K1, the typical process, is to marry as soon as possible and file AOS as soon as possible. You can file for the EAD along with the AOS and the fee for the EAD will be waived. It's still going to take 90 days or longer, but at least you haven't paid a lot of money for something useless. You're also going to need an SSN, which is something you can get by going to the SSA within a few days of arrival if you'd like. This is really one of the reasons some people go for a spousal visa, rather than a K1 - because then you can work right away.

Great, thanks so much for the information - that's really helpful!

 

So, in effect, if I continue working for a UK based company, and receive my pay into a UK bank account (during the ~90 day waiting period), that is still not acceptable? I have read things from several sources which state that as long as I am not employed by a US company, nor putting money through the US system, then it isn't technically against the rules? Confused!

[Boiler 45,656]

Probably confusing whether they would know with the legality.

[Wuozopo 4,293]

I've talked to the IRS about this, well one of your questions about long term. You will be under US tax laws as a resident of the US. You pay US taxes and get off the HMRC roles and PAYE. It doesn't matter if you are paid in £ or $, into a US or UK bank, any earnings are US taxable.

 

If you are an "employee", your UK employer must withhold federal taxes, social security, and Medicare and submit what they withheld each payday directly to the IRS. They have to apply for an EIN (employer identification number) and get set up to submit money to the IRS. They have to issue you a W2 wage statement (and send same to IRS) in January stating how much was paid to you in wages and how much was paid to the IRS in withholding for the entire tax year Jan-Dec.  You use the info off the W2 to file your taxes the same as if you worked at the mall down the street.

 

OR

 

If you are an "independent contractor" for a UK company, they do not have to withhold from your checks. You are self-employed to the IRS. You pay in quarterly to the IRS enough to cover your taxes. When tax filing time roles around, you will have a Schedule C for your self-employment (business) income and expenses. You also have Schedule SE which I believe they call self-employment tax. It is really you paying your own Social Security and Medicare contributions.  Note you pay your full SS contributions, whereas if you were an employee, the employer has to pay half of your contributions out of their pocket. I didn't ask about the EIN for the company that pays you as a contractor. Since they are required to issue a form 1099-MISC wage statement to their contractors, I would guess they need to get an EIN. Employees get a W2. Contractors get a 1099-MISC. 

 

 

Edited May 12, 2017 by Wuozopo

[VisaDJ 16]

5 hours ago, Wuozopo said:

I've talked to the IRS about this, well one of your questions about long term. You will be under US tax laws as a resident of the US. You pay US taxes and get off the HMRC roles and PAYE. It doesn't matter if you are paid in £ or $, into a US or UK bank, any earnings are US taxable.

 

If you are an "employee", your UK employer must withhold federal taxes, social security, and Medicare and submit what they withheld each payday directly to the IRS. They have to apply for an EIN (employer identification number) and get set up to submit money to the IRS. They have to issue you a W2 wage statement (and send same to IRS) in January stating how much was paid to you in wages and how much was paid to the IRS in withholding for the entire tax year Jan-Dec.  You use the info off the W2 to file your taxes the same as if you worked at the mall down the street.

 

OR

 

If you are an "independent contractor" for a UK company, they do not have to withhold from your checks. You are self-employed to the IRS. You pay in quarterly to the IRS enough to cover your taxes. When tax filing time roles around, you will have a Schedule C for your self-employment (business) income and expenses. You also have Schedule SE which I believe they call self-employment tax. It is really you paying your own Social Security and Medicare contributions.  Note you pay your full SS contributions, whereas if you were an employee, the employer has to pay half of your contributions out of their pocket. I didn't ask about the EIN for the company that pays you as a contractor. Since they are required to issue a form 1099-MISC wage statement to their contractors, I would guess they need to get an EIN. Employees get a W2. Contractors get a 1099-MISC. 

 

 

That's fantastic and really, really informative... Thanks so much for the detailed response.

 

My employer processes our wages through a large accounting / payroll firm, so I am hoping they'll already have the knowledge to make the transition to the US systems very easy, but it's good to have all bases covered in case I am left to guide anyone in the right direction! 

[Skatie2k17 36]

On 5/12/2017 at 3:57 AM, Wuozopo said:

I've talked to the IRS about this, well one of your questions about long term. You will be under US tax laws as a resident of the US. You pay US taxes and get off the HMRC roles and PAYE. It doesn't matter if you are paid in £ or $, into a US or UK bank, any earnings are US taxable.

 

If you are an "employee", your UK employer must withhold federal taxes, social security, and Medicare and submit what they withheld each payday directly to the IRS. They have to apply for an EIN (employer identification number) and get set up to submit money to the IRS. They have to issue you a W2 wage statement (and send same to IRS) in January stating how much was paid to you in wages and how much was paid to the IRS in withholding for the entire tax year Jan-Dec.  You use the info off the W2 to file your taxes the same as if you worked at the mall down the street.

 

OR

 

If you are an "independent contractor" for a UK company, they do not have to withhold from your checks. You are self-employed to the IRS. You pay in quarterly to the IRS enough to cover your taxes. When tax filing time roles around, you will have a Schedule C for your self-employment (business) income and expenses. You also have Schedule SE which I believe they call self-employment tax. It is really you paying your own Social Security and Medicare contributions.  Note you pay your full SS contributions, whereas if you were an employee, the employer has to pay half of your contributions out of their pocket. I didn't ask about the EIN for the company that pays you as a contractor. Since they are required to issue a form 1099-MISC wage statement to their contractors, I would guess they need to get an EIN. Employees get a W2. Contractors get a 1099-MISC. 

 

 

 

My situation is pretty similar, so I thought best not create an identical thread.

I'm in the process of obtaining a K1 visa. What I'm still not sure about from the above is whether I'd be able to legally work remotely for the UK company I'm currently employed by whilst waiting for the EAD (and only whilst waiting for the EAD). The company I'm with is solely based out of the UK currently. Any assistance would be greatly appreciated, especially links to any official documents pertaining to this.

[Boiler 45,656]

EAD is the document that allows you to work in the US.

[Wuozopo 4,293]

5 hours ago, Skatie2k17 said:

 

My situation is pretty similar, so I thought best not create an identical thread.

I'm in the process of obtaining a K1 visa. What I'm still not sure about from the above is whether I'd be able to legally work remotely for the UK company I'm currently employed by whilst waiting for the EAD (and only whilst waiting for the EAD). The company I'm with is solely based out of the UK currently. Any assistance would be greatly appreciated, especially links to any official documents pertaining to this.

 

Lots of people have opinions on this, but I have yet to see it spelled out in immigration law. Will anybody from immigration know you are doing this? Only if you tell them. Will the IRS know? Only if you tell them. So it's kinda your choice to make. 

[Transborderwife 4,666]

Just now, Wuozopo said:

 

Lots of people have opinions on this, but I have yet to see it spelled out in immigration law. Will anybody from immigration know you are doing this? Only if you tell them. Will the IRS know? Only if you tell them. So it's kinda your choice to make. 

Very grey are indeed.  Especially if there's a US office

[Skatie2k17 36]

23 hours ago, Wuozopo said:

 

Lots of people have opinions on this, but I have yet to see it spelled out in immigration law. Will anybody from immigration know you are doing this? Only if you tell them. Will the IRS know? Only if you tell them. So it's kinda your choice to make. 

 

I realize that, and that's fine with me. However, I'm not sure the company would be as OK with the grey area. The company has no office in America, but it does have a daughter company in America. I wouldn't be working for the American company until I have my EAD though.

Any ideas on where to start researching this for a definitive legal answer? Other than hiring a layer that just knows!

[VisaDJ 16]

1 hour ago, Skatie2k17 said:

 

I realize that, and that's fine with me. However, I'm not sure the company would be as OK with the grey area. The company has no office in America, but it does have a daughter company in America. I wouldn't be working for the American company until I have my EAD though.

Any ideas on where to start researching this for a definitive legal answer? Other than hiring a layer that just knows!

i've searched high and low on this and cannot find a definitive answer, unfortunately! Unless you're willing to go and speak to an employment (and maybe immigration) specialist lawyer, in the US, I think you'll find consistently conflicting opinions. The best I can find is what you've already heard here: it's a grey area... Nobody is going to know, so if you and your employer are ok with it, it's 99.9% safe.

 

*shrugs*