How An Employed Immigrant Can Pay Employment Taxes In The US?
The United States is the financial centre of the world. Millions of aspirants migrate for work and maintain a high standard of living. The migrant employees who have freshly arrived in America face new proximity. They experience a new culture, customs, currency, rules and regulations, languages, climate and much more. Moreover, the most significant thing is the U.S tax system, which creates lots of confusion among the expatriates. It is crucial to get acquainted with all the possible employment taxes and make payments routinely. The process involves the preparation of tax and filing tax returns on a timely basis.
Immigrants pay billions of dollars in taxes to the federal government, state and local governments on a regular basis. These taxes help in supporting local schools and colleges, enhance social security, facilitate proper medical care and various other projects. As a newcomer, one can take help from the Accounting and Tax Company, a reputed service provider in accounting, taxation and payroll assistance. In the economy, migrant employees assist to develop a strong tax base.
Ways To Pay Employment Taxes
In the United States, regardless of permanent citizens, there is a legal responsibility that everyone who resides and earns should pay taxes on income. Many expatriates opt for institutions like International tax consultant in Texas, an International tax consultant in New Orleans and so on for any other state of the USA. Importantly, here a few important points that can make the preparation and filing of taxes simpler:
Type of Taxes
As an employed immigrant in the US, one has to pay around 20-40% of your salary in federal, state, and local taxes. It depends on the income level of individuals. The IRS uses the word employment taxes to refer to a list of several taxes associated with employees. Generally, these taxes comprises;
- Federal income tax
- Federal Insurance Contribution Act (FICA) taxes
- Federal Unemployment Tax Act (FUTA) taxes
- Additional state and local taxes
Need For SSN OR ITIN
In the US, you can only file tax returns in two ways. Firstly, with the help of SSN ( Social Security Number), it is authorised by the Department of Homeland Security. You must provide relevant documents that substantiate your identity, work-authorized, age and immigration status. Secondly, if you have ITIN (Individual Taxpayer Identification Number), it is a tax processing legal number issued by the IRS to ensure that residents as well as undocumented immigrants. One can pay taxes irrespective of their immigration status.
Filing a tax return is a legal obligation of every person. It is a documented legal evidence of your working presence in the US. A proper record of tax returns can subsequently increase your chances to get Green Card and become a permanent citizen. Failure to pay tax returns can lead to unfavourable fines and punishments. To avoid such unwanted legal consequences file taxes regularly. Apart from that, it shows that as an individual you uphold great moral character.
