pwhite8314

I'm in Texas on a 3 year L1 visa, and assumed I'd be subject to federal tax, medicare and social security. However, when I queried this with my HR dept, they told me

"Social Security will not be deducted from your check based on the visa information we received. You are subject to Federal Income Tax only."

Is that correct? Great if it is, but I want to be sure, as I don't want a big bill at the end of the year.

Thanks, Pete

rebs

Hi,

We're also in Texas on a 3 year L1A visa - my husband currenty pays US tax, but UK NI contributions. I'm not entirely sure I quite understand why this is the case, but I've heard other people say the same.

pwhite8314

Hmmm...but I'm not earning anything in the UK, so will not be making any NI contributions over there?

rebs

Hubby doesn't earn anything in the UK either - salary paid here in $$. As I say, I'm not too sure of the rationale, but his payslip includes a payment described as expat UK Nationial Insurance Contribution.

I just assumed it was cos he's on an expat deal...

pwhite8314

Quite possibly...I'm not on an expat deal though (unfortunately!).

Page 48 (at the bottom of the 1st column) of this IRS document appears to make it very clear that I should be paying it, hence my confusion...!

http://www.irs.gov/pub/irs-pdf/p519.pdf

rebs

yes, reading that, it does seem to suggest you should be paying them....

I imagine someone with more knowledge than me will be along shortly with more help... sorry...

pwhite8314

:-) No worries. I would kinda hope that my HR Department would have more knowledge, but, apparently not...

lapin_windstar

Ha! HR knowing something useful about tax? You'll be lucky!

I can't reclaim any of my SS payments when I bugger off again, can I? I am not PR or USC.

Duncan Roberts

No idea, but I would think you should be paying. Contact your HR department and get them to give you an official notice saying that they say you are not meant to pay taxes and that they will pay any taxes, penalties and interest should it turn out you should have been paying. Or something along those lines.

Tracym

If he's not a permanent resident, and cannot ever claim from social security, it wouldn't seem right that he should pay into it. Social security is called a "tax" and yeah, USCs and PRs have to pay it - but it's really a retirement and disability insurance program.

So if you can't ever claim... doesn't sound right to me to pay into it.

I don't know for a fact, but I can see the logic to him not being required to.

Folinskyinla

Hi:

Not my bailiwick -- but I think only student income on authorized on-campus or OPT is exempt from medicare and SS withholding.

Do note that not only might YOU be responsible for YOUR share of the tax, but your employer would be responsible for THEIR share of the SS tax.

Bluegrass Lass

Completely agree. The OP should make sure he is completely covered with this. I know my OH was paying SS & medicare tax, prior to his PR approval. It didn't matter his status, but because he was legally eligible to work and earn income in the US, he was subject to paying the tax.

I didn't pay it when I worked for my university (when I was still a student) and I thought that was the only exemption.

Duncan Roberts

It's based on resident vs non resident and not in the USCIS sense of things. I know when I was on my J-1 for 4 months I didn't have to pay either.

Bluegrass Lass

Yep. It's how the IRS views your residency, not USCIS. These are two totally different defiinitions.

pwhite8314

In terms of my residency, I think I'm non-resident, based on the 183 day rule etc...I assume that status will change at some point in my 3 years here.

In the same PDF I linked above, (on pg 49) it says that some countried, including the UK, have entered into a "totalization agreement", where you only pay social security (or equivelent) tax in one country, your home country, which in my case would be the UK. Of course, I'm not earning anything in the UK, so I ownt be making any NI contributions.

I will try to get something out my HR dept., but this really shouldnt be this confusing, should it??