USD salary payroll

[BBCWatcher]

I suppose from what you're saying the best way is to convert SGD to USD via Interactive Brokers for the lowest spreads then wire into the Citibank USD account?

Yes.

What makes the US credit union idea better? I'm actually pretty unsure of how I should even go about finding out my employer's credit union and how to contact them directly.

You could ask your employer, and there's also your favorite Internet search engine. For example, if I search on "Boeing credit union" I find BECU, the main credit union that serves Boeing employees. BECU lists a +1-800 phone number, and you can call that number free of charge via Skype or via AT&T USA Direct's access number in Singapore, as examples.

A credit union account means that your employer can send funds domestically within the U.S. to your account, where they are NCUA protected (up to US$250,000, with possible ways to increase that). You're fairly likely to earn a bit more interest, and you're ready to hit the ground running when you arrive in the U.S.

It doesn't hurt to ask. I would.

Celtosaxon is correct that some U.S. banks and U.S. credit unions charge a fee for an inbound wire transfer, but that's my point: you avoid an inbound international wire fee because your U.S. dollars are already there.

Another question on bank accounts, if I go with DBS and I am able to get my employer to pay for the S$10 inward telegraphic fees, would that be a better option than Citibank?

Maybe, but then if your employer is willing to pay S$10 inward fees they why not just add that to your salary?

As far as I have clarified, DBS does not have any fees for outward TT which means I can freely transfer out to a US bank account/IBKR when needed.

Correct, but some U.S. banks and U.S. credit unions charge an inbound wire transfer fee.

Good thing you brought up the issue on stocks. My employment entitles me to Restricted Stock Units (RSUs), not quite exactly stock options. Are they also liable for taxes in the same way as stock options? I understood the 30% dividend withholding tax, but I didn't quite understand what is meant by US estate taxable. The only thing I could find regarding estate tax is a tax on the transfer of the estate of a deceased person.

Investopedia explains RSUs here.

OK, caution: IRAS will want a piece of your RSUs for the portion of time you're working in Singapore. That could get a bit complicated. Is your employer providing tax preparation assistance by any chance, at least for a couple years?

 

[JadenQ]

You could ask your employer, and there's also your favorite Internet search engine. For example, if I search on "Boeing credit union" I find BECU, the main credit union that serves Boeing employees. BECU lists a +1-800 phone number, and you can call that number free of charge via Skype or via AT&T USA Direct's access number in Singapore, as examples.

A credit union account means that your employer can send funds domestically within the U.S. to your account, where they are NCUA protected (up to US$250,000, with possible ways to increase that). You're fairly likely to earn a bit more interest, and you're ready to hit the ground running when you arrive in the U.S.

It doesn't hurt to ask. I would.

Right, I see. Effectively this would be equivalent to having a US Bank account right? Actually my company normally does help its relocating employees to set up a HSBC US bank account, but in COVID situation with many relocating employees affected I assume that it is now easier for them to just wire to our local bank accounts instead of setting up US bank accounts for everyone, especially when many of such relocating employees may not even be able to enter the US for at least half a year (probably more).

Definitely agree no harm asking, however I'll just setup a Citibank USD account in the meantime just to move things faster in parallel, in case the other ways take too long or too much effort.

Celtosaxon is correct that some U.S. banks and U.S. credit unions charge a fee for an inbound wire transfer, but that's my point: you avoid an inbound international wire fee because your U.S. dollars are already there.

Correct, but some U.S. banks and U.S. credit unions charge an inbound wire transfer fee.

Right. In this case then the DBS account would be undesirable.

Maybe, but then if your employer is willing to pay S$10 inward fees they why not just add that to your salary?

Investopedia explains RSUs here.

OK, caution: IRAS will want a piece of your RSUs for the portion of time you're working in Singapore. That could get a bit complicated. Is your employer providing tax preparation assistance by any chance, at least for a couple years?

There is a company tax advisor that I can subscribe to (for a fee), but for RSUs I think I'll cross the bridge when I reach it, especially when theres a ton of things to manage right now.

Thanks so much for such informational advice regardless!

 

[BBCWatcher]

Effectively this would be equivalent to having a US Bank account right?

It would be a genuine U.S. credit union account, with deposit insurance.

Actually my company normally does help its relocating employees to set up a HSBC US bank account, but in COVID situation with many relocating employees affected I assume that it is now easier for them to just wire to our local bank accounts instead of setting up US bank accounts for everyone, especially when many of such relocating employees may not even be able to enter the US for at least half a year (probably more).

HSBC U.S. is another possible option. Not a great bank either last I checked, but not awful.

Definitely agree no harm asking, however I'll just setup a Citibank USD account in the meantime just to move things faster in parallel, in case the other ways take too long or too much effort.

You can check these possibilities Monday U.S. time, and you won't have a minimum balance or early account closure fee problem at Citibank Singapore if successful.

 

[celtosaxon]

It would be a genuine U.S. credit union account, with deposit insurance.

Transferwise allows Singapore based individuals to set up a virtual US account that is ACH-able. Therefore a US employer could credit payroll into such an account. However, that type of account probably lacks deposit insurance.

 

[cfleee]

Given that it's a relocation that hasn't happened yet, there might be complications with opening a bank or credit union account if they haven't done the initial entry to get the passport admission stamp and I-94 record, or haven't received their Social Security card/number yet. Good idea to work on the Citibank or other local bank accounts in parallel.

Will they also be a non-U.S. tax resident for now until they set foot into the U.S. and are admitted on their visa? But OK, they probably have most of a year to sort that out.

 

[teckgamer]

I have been using transferwise as my USA bank account to handle my employee stock plan. The stock is listed in the USA and they are using USA brokerage. Therefore, using transferwise to hold my USD, otherwise crazy exorbitant fees to transfer USD to SGD directly from the broker. Minimal commission fee for FX exchange.