10-10-2022
If you don't live in an income tax-free state, you better read this. I hope I am reading this wrong, and if I am, please help me understand why. Quote:
Without doing any math, I think it's safe to say nearly everyone from a state that taxes income who goes to Hong Kong will have a lower actual vs. hypothetical burden. Fred keeps the difference.Originally Posted by COMPANY WEBSITE
Tax equalization is accomplished through the collection of a Hypothetical federal, STATE and local income tax from the overseas employee (similar to withholding taxes on your US pay check). In consideration for the collection of the Hypothetical income tax, the Company pays, either directly or through reimbursement, the overseas employee's actual U.S. federal income, state and local income, foreign income and social tax obligations
And
Quote:
A: Estimated and final hypothetical state and local income taxes will be computed on Company income allowing deductions and exemptions as determined under the laws of the tax jurisdiction the overseas employee was relocated from.
The more I read this, the more it looks to me like you'll pay your full state burden TO FRED as if you were "hypothetically" still living there. Better move your whopping 500 pounds to a tax free state address before you take this deal or you are in for a BIG hit. Better yet, VOTE NO and have optional equalization written into the agreement.Originally Posted by COMPANY WEBSITE
Q: How does the overseas assignment affect my state and local income taxes?A: Estimated and final hypothetical state and local income taxes will be computed on Company income allowing deductions and exemptions as determined under the laws of the tax jurisdiction the overseas employee was relocated from.
Please tell me I am wrong about this.
