# Heading to work in LA...



## Junius (May 26, 2008)

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


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## Fatbrit (May 8, 2008)

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


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## Junius (May 26, 2008)

Hi Fatbrit,

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


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## Fatbrit (May 8, 2008)

Junius said:


> 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.


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## Bevdeforges (Nov 16, 2007)

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


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## Junius (May 26, 2008)

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.


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## Junius (May 26, 2008)

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.


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## Fatbrit (May 8, 2008)

Junius said:


> 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.


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## Junius (May 26, 2008)

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?


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## Fatbrit (May 8, 2008)

Junius said:


> 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.


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## Junius (May 26, 2008)

Ok... Looks like the 2.5k budget is starting to get stretched quite thin.... With regards to the theory test, it's mostly questions requiring common sense. Other than that, I'll just have to get used to driving on the opposite side of the road (Yes, I come from a country where we drive on the "wrong" side of the road... Haha)

Question is, will I have a social security number within 10 days of getting to the US?


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## Fatbrit (May 8, 2008)

Junius said:


> Ok... Looks like the 2.5k budget is starting to get stretched quite thin.... With regards to the theory test, it's mostly questions requiring common sense. Other than that, I'll just have to get used to driving on the opposite side of the road (Yes, I come from a country where we drive on the "wrong" side of the road... Haha)
> 
> Question is, will I have a social security number within 10 days of getting to the US?


For the practical part, just read the manual available on the web site. Allow an hour's study time and you'll be fine. The practical test is a non event if you can already drive. (BTW, you come from a RHD country because you were invaded by the Brits rather than the French! Swapping over is no great problem. Just be extra vigilant for the first week or so)

The answer to your ssn question is probably no -- which will cause you hours of endless frustration with the bureaucrats at DMV. In fact, you shouldn't even go to apply for your SSN for at least 10 days after arrival to allow the info from immigration to filter into the social security database -- going earlier delays issue of your number since they have to run a manual check instead.

Rock and a hard place, eh?


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## Junius (May 26, 2008)

Fatbrit said:


> For the practical part, just read the manual available on the web site. Allow an hour's study time and you'll be fine. The practical test is a non event if you can already drive. (BTW, you come from a RHD country because you were invaded by the Brits rather than the French! Swapping over is no great problem. Just be extra vigilant for the first week or so)
> 
> The answer to your ssn question is probably no -- which will cause you hours of endless frustration with the bureaucrats at DMV. In fact, you shouldn't even go to apply for your SSN for at least 10 days after arrival to allow the info from immigration to filter into the social security database -- going earlier delays issue of your number since they have to run a manual check instead.
> 
> Rock and a hard place, eh?


Ok... Looks like I'm gonna have heaps of fun with red tape. I believe this is only the tip of the iceberg. LOL...

I'm very grateful for all the info you've kindly shared with me. Relocation is not new to me, but at least I was still in an Asian country (Shanghai). Furthermore, their bureaucracy was no problem since they have far too many loopholes in their system to manipulate... 

I should be more optimistic about working in US, and I believe I will enjoy working there. It's just that I've been groomed by society here in Singapore to worry about every single detail. Haha...


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## Fatbrit (May 8, 2008)

Junius said:


> Ok... Looks like I'm gonna have heaps of fun with red tape. I believe this is only the tip of the iceberg. LOL...
> 
> I'm very grateful for all the info you've kindly shared with me. Relocation is not new to me, but at least I was still in an Asian country (Shanghai). Furthermore, their bureaucracy was no problem since they have far too many loopholes in their system to manipulate...
> 
> I should be more optimistic about working in US, and I believe I will enjoy working there. It's just that I've been groomed by society here in Singapore to worry about every single detail. Haha...


It doesn't get much lower than the DMV, really! Perhaps the HR department in you company could give them a run for their money......but that's about it.

Having applied for driver licenses in communist countries before, the only advice I'd give you was that in the US it can't all be solved with a kilo of coffee and a couple of bottles of scotch! The last time I tried that in a just ex-Communist country, I ended up with a license for everything including big rigs and buses since the police officer was so happy he decided he could translate my English license himself without an official translation (he knew all the Beetle's lyrics!) and was rather generous in the categories he stamped on the card.

In America you just have to persevere without this, I'm afraid. One thing I have noticed, however, is that they seem to make some of it up on the spot and really have no idea when it comes to foreigners . Be sickly sweet (yes ma'am, no sir) and if you hit a brick wall, just try another office or the same office at a different time so you get a different person. Consistency is not strong. Also, if you're sure of your ground, insist that they pass it up to their superiors.

Good luck!


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## synthia (Apr 18, 2007)

If the US has a tax treaty with Singapore, the tax setup is not dodgy at all. When my friends were in Germany working for a US company, they paid US taxes, not German taxes (a good deal for them, as the taxes were much lower) even though the money was paid into a German account. And Filipinos working for my company in the US had a similar deal under a tax treaty. Their salaries were paid to accounts in the Philippines, and they lived on expenses in the US.

It sounds like they are covering the parts that would be most expensive and difficult for you: housing, car, medical

Getting a driver's license shouldn't be a problem. And there is a chance that they have an insurance policy that will cover you. They might deduct something from your pay.

Even if your salary in Singapore is significantly below what you would get for the same position in the US, it may not make a difference to your standard of living.

Just don't expect a live-in maid. That's something that is fairly common in Singapore that isn't in the US. Even luxury apartments don't come with maids quarters.


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## Junius (May 26, 2008)

Fatbrit said:


> In America you just have to persevere without this, I'm afraid. One thing I have noticed, however, is that they seem to make some of it up on the spot and really have no idea when it comes to foreigners . Be sickly sweet (yes ma'am, no sir) and if you hit a brick wall, just try another office or the same office at a different time so you get a different person. Consistency is not strong. Also, if you're sure of your ground, insist that they pass it up to their superiors.
> 
> Good luck!


Haha... I like that bit about the officer knowing the lyrics to the beatles... Well, it's definitely very different where US is concerned except that I realized they had something in common with China. That is, some officers makes new rules on the spot as they have no idea regarding the foreigners. I'll be a good boy and remember my manners... LOL...


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## Junius (May 26, 2008)

synthia said:


> If the US has a tax treaty with Singapore, the tax setup is not dodgy at all. When my friends were in Germany working for a US company, they paid US taxes, not German taxes (a good deal for them, as the taxes were much lower) even though the money was paid into a German account. And Filipinos working for my company in the US had a similar deal under a tax treaty. Their salaries were paid to accounts in the Philippines, and they lived on expenses in the US.
> 
> It sounds like they are covering the parts that would be most expensive and difficult for you: housing, car, medical
> 
> ...


Hi Synthia,

I do believe there's a tax treaty between our countries. But the tax in US is a lot higher than Singapore...  I'll just make sure that the company pays up for all taxes regardless of the account that is being credited (both of which is mine, of course)

They are giving me a car and covering medical, but I'm left to my own devices where sourcing out a good apartment is concerned. As advised by Fatbrit, I wouldn't want to go too low on the rent since it's relative to the living conditions and the safety. I'll try to juggle the cost of rental with food and utilities (though I know some places have utilities inclusive but capped at a certain amount).

I definitely won't be expecting a live in maid... Anyway, if I can afford the serviced apartment that I was looking at in the Oakwoods website, there is absolutely no need since they provide cleaning 3 times a week.


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## Fatbrit (May 8, 2008)

Junius said:


> They are giving me a car and covering medical, but I'm left to my own devices where sourcing out a good apartment is concerned. As advised by Fatbrit, I wouldn't want to go too low on the rent since it's relative to the living conditions and the safety.


As a further thought, you could try out a share to save money -- these are common in big cities in the US.

craigslist: los angeles classifieds is worth a look. Also a good place to pick up stuff you need on the cheap -- furniture, etc.


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## Junius (May 26, 2008)

Fatbrit said:


> As a further thought, you could try out a share to save money -- these are common in big cities in the US.
> 
> craigslist: los angeles classifieds is worth a look. Also a good place to pick up stuff you need on the cheap -- furniture, etc.


I did think about sharing, but there's a possibility of my wife joining me in the future. Furthermore, I don't think she's keen for me to share a place with someone else. Guess who's paying the price? Haha...

But the website is very helpful. I have heard of it before, but it didn't come to mind till you mentioned it. Thanks!


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## Fatbrit (May 8, 2008)

Junius said:


> I did think about sharing, but there's a possibility of my wife joining me in the future. Furthermore, I don't think she's keen for me to share a place with someone else. Guess who's paying the price? Haha..


She can work on an E2 after a little extra bureaucracy. That'll solve the cash problem.


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## Junius (May 26, 2008)

Fatbrit said:


> She can work on an E2 after a little extra bureaucracy. That'll solve the cash problem.


I agree. But that's still in the future, and we haven't made any solid plans regarding her stay in US, and whether she's even going to relocate to LA or not. In the meantime, we'll just have to make do with her trips to visit me from time to time (doesn't that remind you of conjugal visits for those people serving their time? LOL).


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## Bevdeforges (Nov 16, 2007)

synthia said:


> If the US has a tax treaty with Singapore, the tax setup is not dodgy at all. When my friends were in Germany working for a US company, they paid US taxes, not German taxes (a good deal for them, as the taxes were much lower) even though the money was paid into a German account. And Filipinos working for my company in the US had a similar deal under a tax treaty. Their salaries were paid to accounts in the Philippines, and they lived on expenses in the US.


You have to be careful with tax treaty situations like the ones you describe. These can be very dependent on the precise terms of the job - especially how long the transfer is for and the exact type of visa being used. There is normally also the requirement that the foreign national must maintain their social insurance payments back home (i.e. health care and retirement).

And of course there is always the issue of how much the employer thinks he can get away with. (I sat in on a labor court in Germany as part of a seminar, where the US Military was a constant defendant because they simply chose to disregard local labor laws.)
Cheers,
Bev


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## Junius (May 26, 2008)

Bevdeforges said:


> You have to be careful with tax treaty situations like the ones you describe. These can be very dependent on the precise terms of the job - especially how long the transfer is for and the exact type of visa being used. There is normally also the requirement that the foreign national must maintain their social insurance payments back home (i.e. health care and retirement).
> 
> And of course there is always the issue of how much the employer thinks he can get away with. (I sat in on a labor court in Germany as part of a seminar, where the US Military was a constant defendant because they simply chose to disregard local labor laws.)
> Cheers,
> Bev


Hi Bev,

There are still some uncertainties that I'm working out with the company. I know I am still fulfilling my contribution to the pension here in Singapore (Known as the Central Provident Fund). As for tax in Singapore, there is no need to pay for salaries earned overseas for my case.

I will be in US under the E2 visa. The company is going to pay for tax in US, so I will go through with them again to make sure which components they are responsible for (State tax, Federal tax, etc. Hopefully they will be paying for all). 

Thank you all so much for your helpful advice regarding the tax issue. I'm wondering if there is anyone residing in LA who could give me more insight on the area near Inglewood (my office) and a suitable place to stay since I'm Asian. I shouldn't have problems staying in a diverse neighborhood since I used to stay in Australia and Shanghai (being around people of different races and nationalities), but I thought it would be nice to be around Asians too. Also, I have been checking out this serviced apartment on 8700 Pershing Drive in the oakwoods website, in an area called Playa Del Rey?

Any comments would be of great help. Thanks once again.


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## synthia (Apr 18, 2007)

The tax treaties provide that you are taxed by your home country as if you are working there. For Americans transferred from the US to Germany under the right conditions, they continue to make Social Security payments as well as income tax payments.


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