Submitted by Formal_Purpose4527 t3_126spnd in Pennsylvania

Hi, I’m from Europe and this will be my first job in the USA. I got offered 23$/hour for a 40h/week job, starting the 1st of August, ending at the 8th of September. (29 working days). Not sure if the pay is brutto or netto - probably brutto ? - no clue what is common to be told by the employer. If it’s brutto, which it probably is, is there any way to calculate how much will I earn netto? I found some tax calculators online, but I’m not sure if I have to pay the social security and medicare taxes since I’m not US citizen and will not be retired here… I will maybe get this info by the employer in the future, but looking for at least an estimate number now. Thanks a lot guys!

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gslavik t1_jeata75 wrote

> if the pay is brutto or netto

US English terms:

brutto = gross

netto = net (gross - various deductions, including taxes).

Pay offered is always gross pay.

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FaithlessnessCute204 t1_jeaqh64 wrote

As a j1 you will have 10-15% withheld in taxes (probably 10) and any state and local taxes (literally everywhere is different ). Your employer will the generate a w2 tax document for you to file a return in 2024(this will come in February) you then fill out a 1040 NREZ tax form .taxes forexpats has a good write up on the topic

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Formal_Purpose4527 OP t1_jeatbw8 wrote

Thanks a lot to everyone! I think that the HR people will provide me with all the information, I’ve got the acceptance letter just now, I wanted to know mainly how much fuss will there be with the taxes, they will probably help me with everything.

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CharacterBrief9121 t1_jeana5q wrote

$23/hr would be gross income if that’s what you mean. You would make that much before taxes I’m not sure what taxes you would have to pay but who’s paying interns $23/hr when they claim no one wants to work here

Edit:changed net to gross

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Formal_Purpose4527 OP t1_jeanw9e wrote

well they said starting salary 23/hour, paid weekly. Not sure if that’s before or after taxes. Is it a good salary ? It’s an engineering internship, by the time I’m there I will already have my bachelors degree done and I’ll be studying masters. Company is located at the outskirts of Pittsburgh… + they will get me a free accomodation and cover the travel costs.

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oglabradoodle t1_jeaznz4 wrote

That should be a good salary outside of Pittsburgh since your housing is covered! I would be sure to ask them about how the taxes on the relocation costs and accommodations will work. Technically you will be taxed on these costs since they are compensation.

In my experience with engineering internships they have “taxed up”. Essentially they report higher gross pay on those compensations so that they withhold the taxes for you and you don’t end up paying out of pocket. But this is not guaranteed so be sure to ask so you save appropriately!

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Superb_Concert8979 t1_jeaq8np wrote

Working in a different country has International tax implications. You need to hire a CPA, not ask random location based subreddits.

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ariel_1234 t1_jeap5o0 wrote

Honestly, I’d make a list of questions and ask them to HR at the company you’re going to working for. They should at least be able to get some of your questions answered.

When you do get paid, review your pay stub. That will have the details of your pay. Gross pay = $23/hour times the number of hours worked in that pay period. Net pay = amount the check (or direct deposit) is for. This is gross pay minus any deductions Deductions would be taxes (federal, state, and possibly local), Medicare and social security, anything you have to pay towards medical benefits (if applicable)

Since you’ll be working in 2023, you would need to file taxes by April 15th, 2024. Your employer would provide you with a form, called a W-2 that lists out the totals of how much gross money you made, taxes you paid, and any contributions to Medicare and social security.

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Superb_Concert8979 t1_jeaqad3 wrote

Most HR employees are not international tax experts.

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petefromeastpete t1_jearovr wrote

Absolutely true, but if they’re hiring international interns and providing lodging and transportation, it sounds like they have an established program and do this a lot. They might know more than you think.

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Wuz314159 t1_jeapm5m wrote

There is a government form called the W-4 that lists the amount of "Deductions" from your pay for income taxes. Your choices there determine the deductions for that.

I'm sure there are some kind of provisions for international guest workers that none of us have any clue about. There's probably better people to ask than us.

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capnjeanlucpicard t1_jeclfox wrote

It isn’t a straightforward answer. The first thing to ask is how you are receiving payment. Business check? Personal check? Venmo? Cash?

If it’s a business check there will be a pay stub that has that information on it, you probably filled out a W9, and you will receive a W2 in time for tax purposes. However, since you’re not a citizen and don’t have a SSN I would doubt that’s your situation.

If it’s a personal check you’ll probably get a 1099, typically nothing has been taken out for taxes and you’ll have to pay.

Venmo and cash and any other form, you probably won’t get ANY tax form, but you still have to declare the income. I usually file this under “other income” (I freelance and typically have a mix of W2’s, 1099’s and venmo/cash/PayPal that I have to declare)

So … I would get in touch with a CPA. That’s a decent amount of money, and if no taxes have been taken out for you, you’ll be responsible for paying about 30% of it to federal. State taxes are separate, but much less. And I have no idea how it works with you not being a citizen!

I am no tax expert, so anyone with more knowledge than me feel free to correct me here

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capnjeanlucpicard t1_jecmkjs wrote

Also, if you never filled out a work visa you might get dinged for that as well, but I know next to nothing about that. Another thing to check with the CPA. The US realllllly hates when you make money here and circulate it in other countries!

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No_Mission1856 t1_jedg488 wrote

Except sales tax, head tax, or property tax you wont pay any and if you do guys Ive known get it refunded at years end if youre working on a green card, visa, or work permit.

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mynameisalso t1_jec35df wrote

Are you sure you are allowed to work with your visa? Friend got in trouble with this.

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Formal_Purpose4527 OP t1_jednnn7 wrote

Yes, they will help me get a working visa, shouldn’t be a problem, I’ve already gotten a “study” visa in the US before.

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