USA H1B Salary – Working from Canada, India Remotely?

H1B salary in USA using SSN while working remotely in India waiting for visa stamp or maintain Canada PR. H1B status lost on leaving US. File US tax return.

Written by Am22tech
  By Am22tech      Updated  5 Dec, 19

  5    


Working from India on US Payroll

Working from India on US payroll is not allowed unless you have some US work visa like H1B or L1 and for short duration of 1 to 6 weeks..

Many people who exhaust their H1B 6 year quota leave USA. They wait outside USA for their H1B extension result and work remotely like an IT worker from their country.

The most important point to note here is when you leave USA, US immigration law does not apply no you.

You have to abide by the work visa rules of the country that you are currently working from.

Example:

If you are Indian citizen and have left USA, you can work for any employer in India. Does not matter if it is a US based employer or an Indian origin company.

So, the answer to “Can i work from India on H1B and get US salary” is NO.

Remember, Working remotely on H1B within USA is allowed but working remotely from India for a US company is illegal as per US immigration law.

Maintain Canada PR, Get US Salary on H1B?

If you want to stay in Canada to maintain your PR and still want to keep working for your US H1B employer and draw US salary in US bank account, then it is not legally possible with US immigration law.

Your employer needs to show you as an employee that they need physically on US land to sponsor your H1B.

You can work remotely but as soon as you enter Canada, you lose your H1B status which is defined by your US i94.

In this case, your US employer can still hire you but will have to find a way to pay for your services without using your H1B. Usually, it can be done by showing you as a remote consultant working for them. Employer can then show the salary payments to you as business expenses.

You can also keep visiting USA using your H1B visa but then it may be hectic. Many people do enter USA from Detroit on H1B and then stay in Canada. This is probably the best way to get best of both world.

Similar situation may arise for people who are thinking of going to Australia and still maintain their H1B visa. The answer remains same.

Salary in USA while working in India with no H1B status

Legally, if you are not in USA on a valid work permit like H1B, your company cannot show you as an employee in their accounting books and cannot pay you salary in US dollars.

Your US employer should pay you through a contracting company in India. Legally, your employer can hire a contracting company who internally can get work done from India.

You can receive your salary through this contracting middle vendor.

Example:

If you have completed your H1B 6 years quota, your employer cannot show you as a legal employee. You must leave USA and wait for your H1B extension (if filed with pending PERM) result outside USA.

You can work remotely and can get paid by a third party employer who may contract with your US employer.

Should I pay US taxes Working from India?

The US taxation will come into picture based on your stay in USA in the relevant financial year. If you pass the substantial presence test from IRS, then, yes, you will have to pay US tax for that year.

Example:

If you worked in USA from 1 Jan 2019 to 31 July 2019 and then left to work from India, you will pass the substantial presence test. You should file US Income tax return and show Indian income too from Jan 2019 to Dec 2019.

Related: How to file US Tax on NRE Interest 1099-INT

Receiving Salary on my SSN while working from India

I strongly recommend to NOT receive any pay on your SSN while you are working from India.

You would be considered working in USA without any valid work authorization if you receive pay on your SSN from US company.

This may or may not be tracked by USCIS but it is best to avoid.

US SSN and Medicare taxes

If you do not get paid in US, there is no question of deducting SSN and medicare taxes.

H1B Working from Indian on Holiday

Working remotely from India is allowed if you are travelling to India on vacation or short business trip. You can also receive your salary in USD while you are away on your vacation.

Usually, people will take PTO (Paid Time Off) from their H1B US employer and then travel.

Related: Travel while H1B is pending with USCIS – Extension, Transfer, COS, Amendment

H1B International Assignment Working Remotely for a US Company

Working for a US company from Europe, Canada, UK, India does not count as your H1B time when you go for a project that spans more than 6 weeks.

Once you leave US, H1B is out of picture completely unless you left for a short duration like 1 to 6 weeks.

If you plan to work outside USA for more than 6 weeks, it is best to take your H4 and L2 dependents too with you.


USA Work in USA - H1B, L Visa
 






   5 Useful Questions & Answers from comments



  1. B Ganush
    B Ganush 5 Dec, 19 at 4:21 pm

    Anil Gupta stop spreading misinformation. A search on avvo or similar law websites would give you detail son how this is perfectly legal . Lots of people do it. If you don’t know smtg, that doesn’t mean it is not legal.


  2. sam
    sam 5 Dec, 19 at 4:21 pm

    Based on this info, if you are a US citizen (of Indian origin with OCI) can you work from India and still get paid in US dollars in the US?

    If you are a US citizen, and travel to India frequently, working from there, do you know when it becomes necessary to pay tax in India? In other words, if you have to avoid paying taxes in India and deal only with US tax payments, how do you handle that?


  3. Gaurav Chaudhari
    Gaurav Chaudhari 17 Nov, 19 at 12:06 am

    Hi,
    Can you provide source which says that a H1B professional can work from Home (India) upto 6 weeks ?


  4. Pavan
    Pavan 24 Oct, 19 at 12:06 am

    Totally wrong details.

    You can work on US payroll outside US without valid workpermit(H1/EAD) in US. Check the facts & consult a immigration lawyer for clarity.


    • Anil Gupta
      Anil Gupta 24 Oct, 19 at 12:06 am

      Mr Pavan. You check your facts and then write the comment.