H1B Visa Abuse: What Do Software Engineers Earn in India and Pakistan?

[wiseone2]

As I said nothing prevents US from doing it but the question you should ask is why they are not doing it? Is it due any special love or connection to Indian sambhar or chutney?

inertia in the system

 

[Paranoid Android]

Remittance is the only thing that keeps the indian economy afloat.. with h1b being the most ‘lucrative’ part.. without it India can kiss the 8% growth goodbye. that's why they are so nervous...

Awwwww really?
Remittance to India stands even lesser than 4% of country's GDP...
Another Chinaman claim.

 

[Paranoid Android]

They think like their Fake and Duplicate Product

They even forget to do a basic google before putting such claim.
Oh I forgot they use Baidu search engine..

 

[大汉奸柳传志]

Awwwww really?
Remittance to India stands even lesser than 4% of country's GDP...
Another Chinaman claim.

The rest 96% does not matter, at least to the outside world. Engineer exporting business is the only competitive sector of Corporation India. hence the real (nominal) growth comes from

 

[Proud Indian Ba]

The rest 96% does not matter, at least to the outside world. Engineer exporting business is the only competitive sector of Corporation India. hence the real (nominal) growth comes from

only 4-5 % of the engineer only going out on India,

 

[Indika]

inertia in the system

deliberate intentional inertia I suppose when you have not one but million illegals for a country which is so mighty & rich.

 

[faithfulguy]

I don't seriously understandt why Indians are dying to get H1B visas.

On almost every other thread they brag about how great is India with $2.9 trillions economy and greatest growth rate the world has ever witnessed and when it comes to working in their own country, almost everyone is ready to leave the country given a half chance.


Things do not really match up here...somthing is wrong.

It's the difference between bragging and reality. Indians like to brag about how great is India. But all of them want to brag from outside of India if they can.

 

[Dungeness]

only 4-5 % of the engineer only going out on India,

In the country where over 80% engineering graduates are Unemployable, 4-5% is very significant.

 

[faithfulguy]

The rest 96% does not matter, at least to the outside world. Engineer exporting business is the only competitive sector of Corporation India. hence the real (nominal) growth comes from

True, India economy is directly tie to the H1B program. If US raise the H1B salary requirements, it will have major reverse affect on the Indian economy. So a minor US policy is determining if India continues to be the "fastest growing major economy" in the world. Sad.

Indians on here would be against modifying H1B visa as they won't be able to brag as much.

 

[Hamartia Antidote]

You missed the SS tax, Health insurance ,bonus,flexible labor,no vacation,stability,bad hire replacement ...etc that companies gain from. In fact if a company is not innovating and if their business is just service oriented they will treat all the workers as plain expendables. So contractors are a good choice.

Certainly if the person is not an employee the company has less financial responsibility. Most of this is irrelevant to the person being H1-B or not (healthcare, vacation, bonus). Plenty of contractors in the US are not H1-B.

The SS is the same for non-citizens. Again this is why companies prefer to use large agencies as middlemen.

Basically if a person is an employee the company has to deduct taxes out of their paycheck.
If the person is not an employee the company will pay the person/agency every dime with the agreement the contractor/agency will pay the correct taxes to the IRS. If they don't the IRS will attempt to track down the contractor/agency for what's due. If the IRS can't find the contractor/agency they will stick it to the original company for the entire amount plus fines. Somebody has to pay in the end whether it's fair or not. Companies usually make sure there is a large agency be the fall guy.

The agency can then hire the person as an employee or let them be an independent contractor.

I can see some potential loopholes in the $120K strategy. Requiring some $60K yearly "paperwork fee" be paid by the H1-B person to their agency.

 

[RiazHaq]

Can someone explain how India really earns from h1b visas ? With someone claiming that 90 % of our earnings dependent on it .
By my calculations ...
85000 h1b visas per year.
Indians get 80 % .
ie 68000.
earning per person usd 60000.
ie 60000 × 68000 = 4080000000 = 4.08 billion usd.
For a 3 yr period , assuming 100 % stay back in the US = 4.08 x 3 = 12.24 billion usd.

How does this translate to 90 % of 100 billion $ , which are Indias export ?

In theory, India follows what is known as BPM 6 (MSITS) reporting method for software and information-enabled technology services (ITES) which counts sales to all multinationals, earning of overseas offices, salaries of non-immigrant overseas workers as India's exports. In practice, India violates it. BPM 6 allows the salaries of first year of migrant workers to be included in a country's service exports. India continuously and cumulatively adds all the earnings of its migrants to US in its software exports. If 50,000 Indians migrate on H1B visas each year, and they each earn $60,000 a year, that's a $3 billion addition to their exports each year. Cumulatively over 10 years, this would be $30 billion in exports year after year and growing.

This is just to the US. Indian forms also send workers to other western nations whose earnings are included in Indian IT exports.

http://www.riazhaq.com/2016/04/india-files-h1b-visa-complaint-against.html

 

[wiseone2]

True, India economy is directly tie to the H1B program. If US raise the H1B salary requirements, it will have major reverse affect on the Indian economy. So a minor US policy is determining if India continues to be the "fastest growing major economy" in the world. Sad.

Indians on here would be against modifying H1B visa as they won't be able to brag as much.

Let us not go overboard here
There are 65000 H-1 visas. 65,000 x $100,000 = $6.5 billion

It is important given the outdated business model of the large Indian IT companies

 

[Indika]

The SS is the same for non-citizens. Again this is why companies prefer to use large agencies as middlemen.

Basically if a person is an employee the company has to deduct taxes out of their paycheck.

Well thats where the advantage is, company also needs to contribute to SS for an employee. Not only the employee should pay the SS tax but also the company as well. But for contractors that is not the case it is left contractors agency.

Now suppose if you pay a regular employee $60 per hour that excludes SS tax. But when company pays $60 to the contractor the onus is on the agency to pay SS tax and contractor will pay SS tax from his side. So there is 6% off $60 and only $54 is the real wage that contractor gets (assuming no commission or deduction).

In theory, India follows what is known as BPM 6 (MSITS) reporting method for software and information-enabled technology services (ITES) which counts sales to all multinationals, earning of overseas offices, salaries of non-immigrant overseas workers as India's exports. In practice, India violates it. BPM 6 allows the salaries of first year of migrant workers to be included in a country's service exports. India continuously and cumulatively adds all the earnings of its migrants to US in its software exports. If 50,000 Indians migrate on H1B visas each year, and they each earn $60,000 a year, that's a $3 billion addition to their exports each year. Cumulatively over 10 years, this would be $30 billion in exports year after year and growing.

This is just to the US. Indian forms also send workers to other western nations whose earnings are included in Indian IT exports.

http://www.riazhaq.com/2016/04/india-files-h1b-visa-complaint-against.html

All the wages paid to employee ends up becoming operating cost to the company which is paid from contract money itself. Govt can never include salary of employee as export bcos they will never have the numbers for that. Your argument falls flat if an individual is working for a US based company with no relation to India, business or location wise.

You are just extrapolating numbers on nonsense theories. If 775,957 is the total number of visas Indians have then entire employees of Indian companies must be in US!

 

[RiazHaq]

#Indian Owner of #SiliconValley Valley staffing firm charged in #h1b visa fraud - SFGate

http://www.sfgate.com/news/crime/ar...-Valley-staffing-firm-charged-in-11026913.php

SAN FRANCISCO (AP) — The owner of a company that supplied foreign workers to San Francisco Bay Area technology companies is facing visa fraud charges after filing fake documents to bring people to the United States, the U.S Attorney's Office announced Friday.
A federal grand jury indicted Jayavel Murugan, CEO of Dynasoft Synergy, Inc., and a second man, Syed Nawaz, on Thursday on charges including conspiracy to commit visa fraud.

The men obtained H-1B visas for more than a dozen people by claiming the workers had jobs at Stanford University, Cisco Systems and Brocade Communications Systems, according to the indictment. No such jobs existed, but Dynasoft could use the fraudulently obtained H1B visas to get the workers to the U.S., where it could place them with other companies and profit, prosecutors said.

Bala Murali, Dynasoft's chief operating officer, said Nawaz was not available.
Murugan said he did not know about the indictment and was "shocked." He said he needed to consult with his attorney and did not immediately have additional comment.

 

[RiazHaq]

Here's an excerpt of US GAO report on the subject:


India counts the earnings of temporary Indian workers residing in the United States as exports to the United States. However, the United States only includes temporary foreign workers who have been in the United States less than 1 year and who are not on the payrolls of firms in the United States. Indian officials estimate that this factor may account for 40 to 50 percent of the difference between U.S. and Indian data.

India treats sales to U.S.-owned firms located outside of the United States as exports to the United States, but the United States does not count these as imports. (For example, salaries of Indian workers working at US-owed companies abroad).

http://www.gao.gov/new.items/d06116.pdf