Stateside Employer ...
 

Stateside Employer Payroll Issues  

 

brandonc
(@brandonc)
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Joined: 13 years ago
Posts: 33
June 5, 2015 3:29 am  

Hi everyone,

I have just recently moved to St. Croix, and I work from home for a stateside employer. My company has no problem with me living in the USVI, but the HR/Legal department says due to legal issues that cannot pay me here. The say since they are not incorporated here it presents legal issues for them. The company I work for is a really great company, and they have actually investigated incorporating here to accommodate my move, but in the long run that is not going to be possible for them.

I am still digesting most of this info from them, as I just learned this this evening about this issue with my employer. I am curious if anyone else has heard the same information about a company needing to be "established" in the USVI to have employees here, or has any general advice concerning this? I do feel that it could be possible that my employer is not possibly fully aware that the USVI is part of the US, and may think that it is a foreign country, or treating it as such. Does anyone here work for a stateside company that has no physical or legal presence in the USVI?

Thanks,
Brandon


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quirion
(@quirion)
Advanced Member
Joined: 8 years ago
Posts: 427
June 5, 2015 5:08 am  

I got the same info from mine. It has to do with payroll taxes as well as things like workers compensation. They just aren't setup to do business here.


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fdr
 fdr
(@fdr)
Trusted Member
Joined: 12 years ago
Posts: 1246
June 5, 2015 10:36 am  

I did for a few years when I first moved here, back in 2008, and it wasn't a problem. Worked for an international firm of several hundred people based in the U.S. I asked to make sure they had no issues, and they told me that as long as I was based in the United States, there wasn't a problem -- don't know how deep they dug into the workers' comp and payroll tax issues.

Also, this was before the Affordable Care Act, but all my insurance coverage, etc. was just as it had been stateside.


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Alana33
(@Alana33)
Expert
Joined: 8 years ago
Posts: 12198
June 5, 2015 11:37 am  

I don't know the answer to this but wouldn't it have to do with where you pay your income taxes? USA vs. VI?

Maybe a CPA would be better able to help you.
Good luck.


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vicanuck
(@vicanuck)
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Joined: 10 years ago
Posts: 2415
June 5, 2015 12:01 pm  

I'm no expert but wonder why it matters if they pay you here? The employer can direct deposit your pay into your stateside bank account and you can access it through your debit card or by transferring funds from your stateside bank to your VI bank. From a tax perspective, you're still going to file as a VI resident if you live here all year.


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quirion
(@quirion)
Advanced Member
Joined: 8 years ago
Posts: 427
June 5, 2015 12:20 pm  

I'm no expert but wonder why it matters if they pay you here? The employer can direct deposit your pay into your stateside bank account and you can access it through your debit card or by transferring funds from your stateside bank to your VI bank. From a tax perspective, you're still going to file as a VI resident if you live here all year.

its more about pay roll taxes and workers comp.
They aren't setup to pay into either of those here in the VI.
Getting you your money isn't a problem.
I was also told(but don't believe) that health insurance was an issue.

You could simply lie and say you live elsewhere especially if you have an address.


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OldTart
(@the-oldtart)
Expert
Joined: 8 years ago
Posts: 6523
June 5, 2015 12:44 pm  

I was also told(but don't believe) that health insurance was an issue.

If the company offers health insurance as part of the package but the insurer doesn't cover the USVI then of course that's a problematic issue. Health insurance is a major issue for anybody living here and should be taken into consideration by anyone thinking of moving here.


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IslandHops
(@IslandHops)
Trusted Member
Joined: 11 years ago
Posts: 929
June 5, 2015 1:30 pm  

Probably your best option is to work for them as an independent contractor (1099). You would be responsible for your own taxes including the 'employer' portion of ss/mcare so an increase in rate would be needed. You would not be eligible for any benefits.

Problem solved.


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STXBob
(@STXBob)
Trusted Member
Joined: 13 years ago
Posts: 2138
June 5, 2015 2:27 pm  

+1 on switching to contractor status. Ask for more pay to make up for the lost benefits and the added self-employment taxes.


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quirion
(@quirion)
Advanced Member
Joined: 8 years ago
Posts: 427
June 5, 2015 11:41 pm  

Yea but i was covered in the USVI when visiting the USVI and anywhere else in the world.
So why should living here matter for health insurance?


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OldTart
(@the-oldtart)
Expert
Joined: 8 years ago
Posts: 6523
June 6, 2015 12:11 am  

Yea but i was covered in the USVI when visiting the USVI and anywhere else in the world.
So why should living here matter for health insurance?

The difference between being covered while visiting the USVI and coverage as a resident of the USVI is like the difference between night and day. Read your policy. If you use the search engine on this forum you'll find several related threads.


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Exit Zero
(@exit-zero)
Trusted Member Registered
Joined: 12 years ago
Posts: 2301
June 6, 2015 3:43 am  

If your insurance will cover you here it may be that you have to pay for any services and fill out the forms for reimbursement - it is likely that the health provider here will not recognize your coverage or file any paperwork in your or their behalf.


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quirion
(@quirion)
Advanced Member
Joined: 8 years ago
Posts: 427
June 6, 2015 4:42 am  

I was planning the contractor status move myself. And then there were layoffs and canning of all the contractors we currently had.
Go go contracting elsewhere!


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