Hi

[keyurbhai]

Hi I started my project on corp-corp basis two weeks back and in my salary slip my H1 sponsor has charged me 5% for business insurance and 12% for office expenses and overheads (state and federal taxes extra!!!). I feel like I am getting peanuts. I am just getting half the money
My query is, is it the same proecess followed by all companies??

[shervin143]

It should be a typical desi consulting firm . How else can these scumbags earn money? Some small companies will take the business insurance from your pay if you are working on hourly/percentage base (Some end clients will do corp-corp only with companies who has got the required business insurance). What the heck is that 12% cut for office expenses? Haven't heard of it before. If you are so frustrated, then you should consider doing an H1B transfer to a better company.

[keyurbhai]

They have mentioned all below items as Office expenses in the payslip. Is there anyway I can stop them charging me this 12%? I work on hourly basis.

Agreement Execution
Administration
Timesheet Management
Invoicing
Running Payroll
Accounting / Book-keeping
Personnel Cost
Taxation
Rent
Utilities

[shervin143]

Are you saying that apart from this, they take additional cut from your hourly pay that you get from your end client? I mean, if your hourly rate is $XX from your end client. Do they take 12% of $XX that towards these expenses and pay you the rest?

They have mentioned all below items as Office expenses in the payslip. Is there anyway I can stop them charging me this 12%? I work on hourly basis.

Agreement Execution
Administration
Timesheet Management
Invoicing
Running Payroll
Accounting / Book-keeping
Personnel Cost
Taxation
Rent
Utilities

[keyurbhai]

Yes that's true..

They cut from my hourly rate and then pay me the rest. Plz suggest me some ways by which I can stop them charging me this much amount.

[shervin143]

I am not sure if the forum members can help you with this. This is something that you and your employer need to discuss and sort out. If you are paid less than what is mentioned in your LCA, then that is something that you can take it to the DOL. Like I mentioned earlier, if it doesn't work out, then consider transferring your H1B to a better company.

Yes that's true..

They cut from my hourly rate and then pay me the rest. Plz suggest me some ways by which I can stop them charging me this much amount.

[keyurbhai]

Ok, I will discuss with my employer regarding this issue. Bust just let me how is the pay process by H1b sponsor for a consultant working on corp-corp basis.(Here I am refering general process followed by all the consulting companies).

[shervin143]

It depends on the agreement that an individual has with his employer. It is hard to make this generic. However, the most common is the 80-20 split. The employer will take 20% for all his expenses (what you have mentioned below including the employer tax) and will pay the employee the remaining 80% (In which you will have to pay your state tax, federal tax and insurance).

In 80/20 split, if you hourly is $XX. You get: ($XX * 80/100) - State Tax - Federal Tax - Health Insurance.

Some employers work on 70-30 split in which they take care of the health insurance.

So what I am trying to say here is that there is no specific standard. It is hard to comment without knowing anything about an individuals agreement with his employer.

Irrespective of what, you need to get paid as per your LCA (Or more than that). Anything less is a violation.

Ok, I will discuss with my employer regarding this issue. Bust just let me how is the pay process by H1b sponsor for a consultant working on corp-corp basis.(Here I am refering general process followed by all the consulting companies).

[keyurbhai]

Thank you very much my frnd for all useful info.