| Financial Services |
| Marine Services |
| Published Articles |
| Contact Us |
| Financial Calculator |
| Expense Deductibles |
| FAQ's |
| Seminar Schedules |
| HOME |
PAYROLL TAX ISSUES
There are many complexities to the payroll tax filings and responsibilities. Depending on whether the Yacht is registered overseas or in the United States will depend on the degree of compliance with the United States Tax Rules. A lot of foreign registered yachts do not comply with United States Tax rules, either for the lack of knowledge or The major consideration is whether or not the taxpayer is a resident alien or a United States Citizen or Green Card holder.
a) United States Yacht & United States Crew. All taxes withheld, including social security, Medicare, and federal income tax. To avoid these taxes you should think about incorporation. You may be subject to lower withholding amounts but this would depend on your time in and out of the United States.
b) United States Yacht & Non United States Crew. Depending on the treaty of the non-United States Crew, the crew may or may not be subject to any withholding requirements. A lot of owners do withhold only to be safe and not sorry or because of lack of knowledge or simply it is just easier to set up a system that covers all employees. We can get the money back from the United States government, however you are forced to file a tax return. There are a number of qualified tax professionals who can prepare this tax return, but with the complexity involved and to ensure a proper job you should choose a preparer with the necessary qualifications.
c) Foreign Registered Yacht & United States Crew. Remember United States Crew must pay income taxes on worldwide income. However foreign employers are not subject to United States Tax Rules.
© Please keep in mind the above information has a copyright protection. This package can not be transferred to another without the express written consent of Advisory Tax Service, Inc. This product is provided to clients of Advisory Tax Service, Inc. and should not be relied upon by others. Advisory Tax Service, Inc does not accept any liability for the misuse or dissemination of this material.
For Your Convenience, please download an Information Organizer Form. This enables you to summarize important information to make our service to you all that more efficient and effective: