Jerusalem Professional Services

Jerusalem Professional Services N & D Limited (JPS) is a registered Israeli company with offices in Jerusalem, Israel. Established in March 1998, it provides outsourcing services to U.S. based organizations. In turn, it employs Israeli residents who have the skills to provide these services.

The contract between JPS and the U.S. entity can be oral or written. A legal fee is charged to complete a written contract. A written contract usually has a clause which gives the U.S. entity the right to approve or veto the person who has been selected to manage its project. An addendum to the contract stipulates the name of the manager and his qualifications.

The U.S. entity does not have to withhold any tax at source when remitting fees to JPS. Any corporate and/or payroll taxes are paid by JPS.

Aside from providing a valuable service to the U.S. entity, usually at an equal or cheaper rate than having to employ a U.S. based employee, the U.S. entity also saves its portion of F.I.C.A. tax.

One of the primary advantages to the skilled employee hired by JPS is not having to pay double social security taxes to both the United States and Israel. Since he or she is an employee of an Israeli entity, there is no U.S. social security to be paid.

Each employee of JPS is required to subscribe for Manager's Insurance which provides for severance pay, life insurance, disability insurance and retirement pension.

Additionally, the employee may elect to be part of a Training Fund (Keren Hishtalmut). All of these benefits result in tax savings.

There is a monthly accounting fee, which covers bookkeeping, salaries, general management and the year-end audit and company tax return. There may be additional fees for tax planning and consulting.