Finances
Traveler's Checks
The best option is to bring all your money in Traveler's Checks. Since money may be lost or stolen, traveler's checks can be replaced whereas money cannot! Make a separate list of check numbers, and buy small denominations. Remember to bring enough money needed before your first paycheck arrives. It takes a long time to have money sent from home. You may want to bring emergency backup en route to your job site.
Bank Accounts
It is wise to open a bank account as soon as possible. Banks differ in their services and fees, so make sure to look around to find the one that best suits your needs. In order to get a bank account you need to bring with you various forms of identification. The most important documents are your passport and your social security number. If you have any credit cards, and proof of where you are living, you should bring these as well. Banks hours vary, check with the bank you choose for any specifics.
Automatic Teller Machines (ATM)
Most banks provide bank cards that can be used at 24 hour automated teller machines (ATM). The ATM machines are used for withdrawing money and/or depositing checks. The ATM are located across the USA. Most ATM charge a fee for using their machines, if it is not an ATM from your specific bank. Check with your bank before leaving home to verify if you are able to use your bank card from home at some of these machines.
Currency
The basic unit of currency is the dollar ( $ 1 ). Coins are in the value of the 1 cent or a penny, 5 cents or a nickel, 10 cents or a dime, 25 cents or a quarter, 50 cents or a half dollar, and 1 dollar coins. Bills ( notes ) are printed in the value of $ 1, $ 5, $ 10, $ 20, $ 50, $ 100.
Credit Cards
Most Americans have credit cards. They are a convenient, safe way to make large purchases, or get cash advances from banks. Be careful about overspending; you will have to pay your debts eventually.
Western Union
This service makes it possible to transfer money from your home country to anywhere in the United States within one hour on any day of the week. There is a handling charge, which will vary according to the total amount sent. You can call 1.800.325.6000 to find the Western Union office nearest to you and nearest to the person sending money to you, and to see if your money has arrived.
Telegraphic Transfer
This allows you to transfer money from a bank in your home country to a bank in the U.S. This can often take a week or longer. The charge varies from bank to bank, and you may be charged by both receiving and sending bank. Not all banks offer this service; check in advance.
Banker's Drafts
These can be bough from your country and then mailed to you by the Post Office Express Service. This usually takes between three and seven days, and participants sometimes have difficulty cashing them in small towns. Designate an emergency contact in your home country.
Sales Tax
Visitors to the United States are surprised when a shopping bill costs more than the marked price. This is because sales tax is added on when you pay. Sales taxes vary from state to state and from region to region.
Tipping in the US
Generally tip the waiter/ waitress 15 to 20 percent of the price of the meal. Similar practices apply to bartenders, taxi drivers, hair stylists, and various service industry individuals. If you enjoyed the waiter or waitress service, show it by paying a bigger tip. Tip less if you did not like the service.
Taxes
W4 Forms
When you begin your job, employer will ask you to complete a W4 form (Employee's Withholding Allowance Certificate) to ensure that you are not over-taxed. Your employer will keep this form while you are working there, and will use the information on this form to determine how much tax should be withheld form your paycheck. If you do not fill out your W4 form properly, you may have to pay more tax in the future. The following instructions on filling out your W4 form are from IRS Publication 515 (rev. 11; 96 ); Withholding of tax on Nonresident Aliens and Foreign Corporations. Please note that you are classified as a non resident alien. Therefore, the instructions shown on the W4 form do not apply. Please follow the instructions below when completing the W4 form.
1. Check only Single; marital status on line 3 (even if you are married or divorced).
2. Claim only one withholding allowance on line 5, unless a resident of Canada, Mexico, Japan, or South Korea, or a U.S. National.
3. Do not claim Exempt withholding status on line 7.
EMEMPT
Social Security Tax
Medicare
Federal Unemployment Tax
NOT EXEMPT
Federal Income Tax
State Income Tax
City Income Tax
Social Security Tax---You Don't Pay
You must have the Social Security card and number, but you are EXEMPTING from paying Social Security tax and Medicare tax. Sometimes, employers make a mistake and withhold these taxes. You can tell if this happened by looking at your paycheck (the paper with your wage details). If you do see any deductions under the world FICA, the employer has made a mistake. Please show your boss the Dear Employer letter or call PII to resolve the problem.
Income Tax--- You Do Pay
In the U.S., the federal, state, and local governments impose income taxes. The Internal Revenue Services (IRS) collects personal income taxes, usually on a pay-as-you-go basis. This means that your employer generally withholds income tax from your salary and pays it directly to the government. You must pay U.S. income tax. Failure to pay any taxes you owe could cause problems for you in the future if you apply for any visas to return to the U.S.
Federal Income Tax ---You Do Pay
All income-earning individuals pay income tax to the federal (national) government. It is paid on income from salaries, wages, and tips. Approximately 10 to 15 percent of your salary will be withheld for federal income tax, a portion of which you may be able to claim back as a refund at the end of the year. (Refer to Tax Return Forms and Tax Refunds).
State and City Income Tax--- You May Pay
States and cities may charge extra income tax according to local laws. State income taxes are approximately 5 to 8 percent. At the interview, ask your employer about the local tax situation. Like federal income tax, state and local income taxes will be withheld from your paycheck. You may be able to claim a refund for a portion of these taxes at the end of the year.
W2 Forms
The employer will send the W2 to your address in your home country. You must receive a W2 form from each of your employers, since you will be required to submit copies of the form with your tax returns. Be sure that you give yours home address to all employers so they can send you this form.
Tax Return Forms and Tax Refunds
When you receive your W2 at the end of January 2001, you will have to fill out a tax return form. If you have not received your W2 forms by February 15, 2001, you should contact your employer(s) for replacement(s). There are separate forms for federal, state, and city taxes. All forms are available from banks and post offices in the U.S., and federal tax return forms are also available from U.S. embassies in your home country and from the Internal Revenue Service website. Request state and city forms from your employer. You must complete tax form 1040NR-EZ for non-resident aliens. The federal tax form you will have to complete is the 1040NR-EZ, which is specifically for non-resident aliens (the category in which you should file). The deadline for filing 2000 tax return is April 15, 2001. Use the charts sent with the tax return forms to determine the amount of tax you owe. If too little was withheld from your paychecks, you must pay the balance to the U.S. government. If too much was withheld by the U.S. government, you qualify for a refund. The earlier you file, the sooner you will receive any refund.