Heading to work in LA...

Junius · #1 (**permalink**) 26th May 2008, 06:19 AM

Hey there...

I'm glad I found this forum as I've noticed that this forum is by far most beneficial to clueless people like me.. Lots of helpful people to offer very helpful advice...

Ok, to give an idea of my situation.

I am a Singaporean joining a freight forwarding/logistics company and will be seconded to their US office in Los Angeles. However, we are not seeing eye to eye on several items. I will be on a "local plus" term (as opposed to a full expat package. I will only be getting lodging, car and a small package to cover expenses like mobile, gas, and the likes). Considering that the cost of living is higher since it's a bigger city, is there a certain ballpark figure that I should look at? I am not looking at living an extravagant lifestyle, but at least avoid "out of pocket" situations.

The company will be responsible for my tax. However, I understand that there are also federal and state taxes which I am not very clear about. Also, my salary will be paid into my Singapore account, whereas expenses will be paid into my US account. Will there be any problems with that?

As I am totally new to LA, I was thinking of staying close to Inglewood, where my office is situated. Is there any good neighborhoods or Asian community there?

There are just too many questions that I have, but I would just like to start off with these two. I should be relocated to US sometime in mid-July, but that comes with a lot of anticipation and worries.

Thanks for bearing with my rantings, and I look forward to any advice given by you wonderful people around!

Cheers.
Junius

Fatbrit · #2 (**permalink**) 26th May 2008, 06:36 AM

The question that comes to my mind is to ask what visa you will be on.

Junius · #3 (**permalink**) 26th May 2008, 06:39 AM

Hi Fatbrit,

Thanks for the quick response. I will be on a E2 visa.

Fatbrit · #4 (**permalink**) 26th May 2008, 06:52 AM

Quote:

Originally Posted by Junius

Hi Fatbrit,

Thanks for the quick response. I will be on a E2 visa.

Okay -- so it's penal servitude!

The tax and payments sound very dodgy to me! You are responsible for filing your federal and state tax returns, but sounds to me like your company are trying to save money. And if the proverbial hits the fan, I'm sure you won't escape unscathed.

As to costs, from what you've written I suppose you're only expected to buy food and amusement. For food, $500\month should be plenty. For amusement, it depends on your tastes.

Bevdeforges · #5 (**permalink**) 26th May 2008, 07:59 AM

As Fatbrit has indicated, I think the arrangement sounds a little dodgy or (to be generous) perhaps your company has little experience working in the US. It is a common misconception that paying salary into a foreign account will shelter it from taxes in the country where you are resident. The usual practice is to have the US office pay you your salary (and expenses) directly and then bill the home office in Singapore for reimbursement.

If I'm not mistaken, you will be taxable on your worldwide income while you are resident in the US. This includes your "salary" being paid into your Singapore account plus your US expenses and all taxes the company is paying on your behalf. It gets very complicated very fast. At a minimum, I would ask that the company engage an international tax accountant in LA with whom you can work on your tax situation. (And the fees for that will also have to be included in your taxable income for the US.)
Cheers,
Bev

Junius · #6 (**permalink**) 26th May 2008, 08:22 AM

Haha... I like the way you put it... Yes, I would think that it's very dodgy, and it's these creative entrepreneurs that would come up with all sorts of idea to make a cheap deal.

As to the package, I believe it should be adequate for living in LA. 2.5k to cover housing, utilities & meal allowance. 200 for IDD/mobile/communications. And 400 for gas. A car will be provided by the company. I guess any changes will be juggled within this package.

Junius · #7 (**permalink**) 26th May 2008, 08:28 AM

Hi Bev,

Thank you for that info. It is a lot more helpful and the insight from an American or someone staying in USA is but of course, valuable. I will bring this matter up with the company as I do not wish to be shot down in the crossfire between the US authorities and my company's creativity.

It started off as a good offer with great prospects for me, but the more I scrutinize the fine print, and learn more about the red tape, the more it worries me.

Hopefully, I would be able to arm myself with more knowledge about working in the US and put myself in a better position.

Fatbrit · #8 (**permalink**) 26th May 2008, 08:35 AM

Quote:

Originally Posted by Junius

Haha... I like the way you put it... Yes, I would think that it's very dodgy, and it's these creative entrepreneurs that would come up with all sorts of idea to make a cheap deal.

As to the package, I believe it should be adequate for living in LA. 2.5k to cover housing, utilities & meal allowance. 200 for IDD/mobile/communications. And 400 for gas. A car will be provided by the company. I guess any changes will be juggled within this package.

Is the company arranging the lease on the apartment? With no credit history and fresh off the boat (so to speak!), most landlords will want a hefty deposit.

Car insurance? Also you'll need a driver license after 30 days.

The gas allowance will get you 100 gallons. For an American gas-guzzler in LA traffic, I wouldn't go higher than 15 mpg.

Also, health insurance -- this one is a biggie as there's no universal health care in the United Corporations (sorry, States!) of America.

Sprint are currently offering unlimited cell phone usage for $100/month. Internet/Cable TV/Home Phone packages are also around the same $100/month. Again, expect deposits as you have no credit history here.

Junius · #9 (**permalink**) 26th May 2008, 08:48 AM

It definitely would be a scary start for me there. I am hoping to be able to work something out, perhaps a serviced apartment (I saw one on the Oakwoods website... Looks great, but probably too expensive). Health insurance will be covered by the company, although I would probably have to get my own dental.

I was probably mis-informed regarding the driving license portion. Any possibility that the car insurance is some sort of blanket policy covering all employees? As such, would I still be required to convert my license (Singapore or international) to a California driving license?

Fatbrit · #10 (**permalink**) 26th May 2008, 08:57 AM

Quote:

Originally Posted by Junius

It definitely would be a scary start for me there. I am hoping to be able to work something out, perhaps a serviced apartment (I saw one on the Oakwoods website... Looks great, but probably too expensive). Health insurance will be covered by the company, although I would probably have to get my own dental.

I was probably mis-informed regarding the driving license portion. Any possibility that the car insurance is some sort of blanket policy covering all employees? As such, would I still be required to convert my license (Singapore or international) to a California driving license?

Went to look on the California DMV site -- you've actually only got 10 days to get the license from starting work. Don't worry -- it's impossible to fail a US driving test. Also, you driver license is your ID here -- you want a US driver license as it will make your life so much easier.

On the rental front, anything under $1500/month in LA will not be place anybody would want ot live without an AK 47 to protect your belongings.