I’ve gotten some emails about a complete mess involving income tax with Clark University’s China programs in Hefei and Jinan. Basically, the management doesn’t know what they’re doing. In an effort, to distance themselves from their employees Clark hired a Hong Kong firm to pay and deduct taxes from Clark’s instructors.
That was a mess. The company didn’t provide any paperwork stating what taxes were paid. Some where told that the company didn’t pay the taxes. It’s a complete mess because Hong Kong is separate from China, where taxes may or may not be due.
Now Clark’s deducting money for FICA and social security from the teachers’ pay. Since they’re technically employed by a Hong Kong company and not Clark, this is a huge mistake. These teachers, just like any other expat teachers, aren’t liable for these deductions.
Clark’s giving out erroneous information and making costly mistakes. Some teachers have lost half their income.
Avoid working for Clark till this is resolved, if it ever is.
Now the teachers have to hire accountants who know Chinese and US taxation. That won’t be cheap..
Programs like Fort Hayes, University of Toledo or RIT, among others with international programs are far safer. They seem to know more about what they’re doing.