Is the U.S. sub of a foreign corp allowed to have an employee that is not on their payroll but on the foreign?

Question

Isn't the foreign corporation avoiding the payment of payroll taxes?

Sandy what if this has been the case for 1 1/2 years. The employee oversees the operations of the U.S. subsidiary.

Answer 1

Yes, these are seconded staff and remain on the payroll of the foreign company which usually sends a bill to the US co. for services rendered by its staff. This arrangement is usually a short one, like when they change the a/cg system or computer system and send their experts to all the group companies for training purposes. As to payroll taxes, it's already paid in the foreign country, and like I mentioned, these arrangements are usually for short periods.