After reading “Vedachalam vs Tata America International Corp”, I would like to know how much these employees on H1/L1 visa in the USA make in a year.
I assumed they make about min $ 70-80,000 a year, predictably, but news reports mention different digits.
Is it, also, true that their US taxes, medical premiums and other deductions including SS are withheld from the paychecks?
Location: Western Hemisphere
Posted on: 03-04-12 21:19:48
Just reading a portion of the lawsuit makes my head spin. Looks like TCS was paying Indian salary and an additional US salary as a gross amount. In return, any tax refunds now became entitled to TCS. Sounds like a confusing deal.
In any case, in order to work in the US, a legal status is required. As soon as a legal status is formed, tax witholding per US fedral and state law becomes mandatory. So, yes, Federal, State (if applicable), City (if applicable), medicare and social security taxes are withheld at source from every paycheck. Medical premiums (employer benefits as applicable) and any 401k (if applicable) are voluntary deductions.
The iunfortunate part in this deal is the loss of Social Security. In other words, assuming SS remains solvent in the next several years, these guys may not be able to collect SS because they may not be employed as an US employee if they did not complete 40 quarters (10 years, need not be consecutive) of eligible employment. Hence they have paid "taxes" with nothing in return.
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Dimple2001
