I am currently working with a big company is US on my visa/EAD through a american consultancy.I would need sponsorship after Oct 2013.I have found an Indian consultancy who is willing to do H1B for me with this current job but the Indian consultancy have asked me to transfer my payroll to them as early by Feb 1st 2013 so that they will have atleast 2 paystubs for me to file H1B .This is understandable.They have accepted to work with me on a percentage basis of 75%-25%.But what I am skeptical is about that - they will be taking their 25% share starting from Feb 1st onwards ie even before filing H1B.This when asked for clarification they said they need this in order to cover their payroll taxes.Does this makes any sense ? They need to take their percentage share only after filing my application in Apr, correct?Is it okay if I say that I am ready to transfer the payroll only by Apr 2013? Is this a way of consultancies drawing more money out of you? Please help me.Your response will be of great help for me to make a decision soon.Thanks in advance.
Your H-1 won’t start until Oct. So to me, whether they take the 25% from Feb is same as taking it from April. Only if they hold until Oct, would it be something different.
If you really want to file through this company, then do this calculation. What will be the billing rate of the project where you will be placed in Feb. Determine what will be 25% of it. This way you will know what they will get from you in Feb and March. You can then determine whether that amount is big enough to say no to this offer, or is it ok in the long run.
You should also check w/ them what the pay structure will be when you are on bench and not working on any active project. You should also ask them about the health insurance. If they shift the burden of health insurance on to you, then your pay will further decrease. If you wil remain on your husband’s insurance plan then you can negotiate accordingly saying that they will not have to pay their share for your health insurance, which is saving for them. So they can tilt the ratio in your favor.
FYI - employer’s share of payroll taxes is 12.4% of your salary. So if the billing rate is $100, your salary becomes $75.00. Payroll taxes for employer becomes $9.30, which means a profit of $25-$9.30=$15.70 for them.