alect

Mon Feb 18, 2008 10:54 pm

- in Australia you don't really show up as being employed?

elsja

Tue Feb 19, 2008 7:42 am

I work for a US company!!!

- These companies do not have a presence in Australia?
Correct- my company is nowhere near expanding in Australia

- You are employed in the US using your SSN by a US company?
Yes, I've worked at my company for 3 years so I've just left everything how it's been for the last 3 years.

- in Australia you don't really show up as being employed?
Correct, I'm on a working holiday visa, but since I havent gotten a job here, I haven't filed for a tax file number.

-How do you pay your taxes? Do you pay normal US taxes and then claim a credit on your Australian tax return? Do you need to pay the extra Medicare Levy?
Well in California at my job, I am actually considered a consultant. I started off as just part time but I've moved to more of a full time roll over the years. So I actually don't have taxes withheld and I pay quarterly estimated taxes on my own. Then I submit a normal tax return just like everyone else. I've never done an Aussie tax return and I don't even know what the medicare levy is. I've only been here 5 months and 2 1/2 of those I was only on a visitor visa. Since I'm not even a resident (temp. or permanent) I haven't even thought about filing tax returns here.

- Since your wages are paid in the US, withholding is done in the US?
See question above. Simple answer is yes I suppose.

Another thing to add... SInce I get paid in US dollars, I use an international bank (citibank). Every time I get paid I can go to a citibank ATM and withdraw money for free (rather than paying 3% at other ATMs). THen I just turn around and deposit it straight back into my Aussie Citibank. It is a bit of a pain (espeically since there aren't tons of citibanks around) but it saves me from paying $30+ every 2 weeks in wire transfer fees or ATM conversion fees.

SOrry i couldnt be much help with the tax stuff. I just haven't got that far here yet. Let me know if you have more questions!

elsja

Tue Feb 19, 2008 7:12 am

Since I'm not even a resident (temp. or permanent) I haven't even thought about filing tax returns here.

Quote:

 

Kate – a visitor, working and living in one place

Facts

"Kate is from Ireland and entered Australia on a Working Holiday Maker visa in July 2004. She intended to and did in fact stay in Sydney for most of the twelve months she was in Australia. Kate is close to her brother who has migrated to Australia and lives in Sydney. Kate had one ten day holiday travelling up the east coast just after arriving in Sydney, and another two week holiday at Byron Bay in January 2005. She spent the last three weeks of her stay in Australia travelling around Western Australia. Kate lived in share accommodation at one location for four weeks in Sydney and share accommodation at another location in Sydney for ten months. Kate's name was put on the lease and she made a part contribution to the bond. She also purchased her bed, other bedroom furniture and a fridge.

Kate worked in coffee shops and restaurants throughout the whole period she was in Sydney. Kate joined a library, the Irish club and a water polo club whilst staying in Sydney.

Outcome: why is Kate a resident?

In view of the time Kate spent living at the one location (ten months); her continuing engagement in the workplace throughout her stay, her social and living arrangements and Kate's intention to live in Sydney for the majority of her stay in Australia, Kate has a established a pattern of behaviour which is consistent with residing in Sydney and she is a resident according to ordinary concepts.

alect

Mon Feb 18, 2008 1:24 pm

I know several of you in Australia are still working for US companies.  There is a chance I could work something similar out so I had some questions:

- These companies do not have a presence in Australia?
- You are employed in the US using your SSN by a US company?
- in Australia you don't really show up as being employed?
- How do you pay your taxes?  Do you pay normal US taxes and then claim a credit on your Australian tax return?  Do you need to pay the extra Medicare Levy?
- Since your wages are paid in the US, withholding is done in the US?

Any other info would be helpful too.

Thanks

TerritorianTori

Mon Feb 18, 2008 2:18 pm

alect

Mon Feb 18, 2008 10:54 pm

- in Australia you don't really show up as being employed?

I don't have any personal experience with foreign employment issues, but this brings up an interesting question. (at least interesting to me, a former tax accountant :mrgreen: ) If you're an Australian-resident-for-tax-purposes working for a US company, based in the US, paying taxes to the US, how would the ATO know about this foreign employment income unless you told them? What's to stop you from just not filing a tax return and being done with it?

Angie

Tue Feb 19, 2008 11:43 am

Speaking of misinformation. I called the ATO regarding this situation and was out right asked why I would want to become a resident for tax purposes. I was told by the girl on the phone that if I wanted to file my taxes in Australia that was fine but why would I if there is no way the ATO will know. I explained my situation to here extensively and asked for any sort of ATO booklets on how and when to file taxes to which she also answered that the ATO doesn't supply such things.

:headscratch:

dave2006

Tue Feb 19, 2008 8:46 pm

Indeed sounds like a similar discussion that was had here not too long ago. I think similarly the real question is, is one willing to take the risk of possibly breaking the law and paying the consequences if caught? The situation is a bit different than living in Australia and not filing a US tax return (the subject of the previous thread) though, since if you are legally required to report your income to the ATO and get caught not doing so, I would suspect the associated penalties would be harsher since you live here and so are easier to "bring to justice" . Personally, I sleep better not taking such risks.

Angie

Tue Feb 19, 2008 9:13 pm

Speaking of misinformation.  I called the ATO regarding this situation and was out right asked why I would want to become a resident for tax purposes.  I was told by the girl on the phone that if I wanted to file my taxes in Australia that was fine but why would I if there is no way the ATO will know.  I explained my situation to here extensively and asked for any sort of ATO booklets on how and when to file taxes to which she also answered that the ATO doesn't supply such things.

:headscratch:

alect

Wed Feb 20, 2008 12:13 am

One further question (especially for those of you formerly having lived in CA and working for CA companies). Please tell me you don't need to pay CA state income and other associated taxes? Since you're not a resident there, do they have a justification for levying those?

alect

Tue Feb 19, 2008 2:43 pm

I would be very surprised if the IRS and ATO exchange information (I know how government databases and integration works) - not only because of the IT issues, but they would also need to be able to match up Joe Smith in Australia with Joe Smith in the USA - that may be no mean task.  Ofcourse that doesn't mean people should try and hide their foreign income.....

One further question (especially for those of you formerly having lived in CA and working for CA companies).  Please tell me you don't need to pay CA state income and other associated taxes?  Since you're not a resident there, do they have a justification for levying those?

I think I may heed the advice, and if/when we get to negotiation stages, I  would ask the employer to include the cost of an international tax accountant/lawyer in the package.