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Eugen Tarnow

 

    Why H1B salaries cause wages deflation - H1B employers do not have to pay SSN or Medicare

    Eugen Tarnow  November 8 2017 09:03:25 PM
    By Eugen Tarnow, Ph.D.
    Avalon Business Systems, Inc.
    http://AvalonAnalytics.com

    Our H1B policy is set to protect the "prevailing wage".  Unfortunately, this does not include the employer part of Social Security or Medicare.  Thus instead of H1Bs simply costing the "prevailing wage", they actually cost 8% less than the prevailing wage because the employers do not pay Social Security or Medicare for H1Bs.

    The many people in our Department of Labor apparently could not catch this problem.

    Image:Why H1B salaries cause wages deflation - H1B employers do not have to pay SSN or Medicare
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