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Social Security Tax for USC after R2I

Posted: Thu Nov 08, 2007 6:15 am
by Rajram
I did search several forums, however did not find answer to this simple questio. There were just too many search results to filter. I thought I might just ask it so it gets noticed.

There is no proper information on whether a USC should pay social security taxes when employed for a company in India such as Infosys or a multinational such as IBM India or Microsoft India. Since I will be paying the Indian taxes and will be making some contribution to a retirement plan in India, should I still pay SS taxes in India, if so what percentage?

If these questions have been answered already, please help me locate the answers in this forum.

Social Security Tax for USC after R2I

Posted: Thu Nov 08, 2007 6:51 am
by Bobus

Social Security Tax for USC after R2I

Posted: Thu Nov 08, 2007 11:38 am
by layman
Soc Sec tax has to be paid by the employer. As an employee you need not pay any soc sec tax. Indian employers need not pay soc sec tax to US. If you work for IBM you will be working for an Indian entity of IBM and there won't be any soc sec paid by IBM or you. Your question should be moved to "My silly finance question" thread

Social Security Tax for USC after R2I

Posted: Thu Nov 08, 2007 1:11 pm
by Rajram
layman;56176Soc Sec tax has to be paid by the employer. As an employee you need not pay any soc sec tax. Indian employers need not pay soc sec tax to US. If you work for IBM you will be working for an Indian entity of IBM and there won't be any soc sec paid by IBM or you. Your question should be moved to "My silly finance question" thread[/quote]
That answers my question. Thanks a lot.

Social Security Tax for USC after R2I

Posted: Thu Nov 08, 2007 5:32 pm
by Bobus
rajram123;56183That answers my question. Thanks a lot.[/quote]

The issue may have a few nuances that Layman's response does not capture.

An affiliate of an american employer may be required to deduct SS taxes. Also, self-employed USC is subject to SS taxes. Feel free to go thru the link that was supplied earlier.