Michael

The following document may possibly help explain the issue.

http://www.visalaw.com/03jul2/2jul203.html

Bob

Can't some H1's get out of paying it? But that's only if they do bugger off, if they decide to stay and get greencards they've got to back tax it all, so you might as well just pay it and use the tax treaty to claim the credits in the UK...

THFC1

I've been on an L1 visa for 5 years now and have never paid SS or medicare. I still pay UK NIS instead. This was at the advice of our company Tax consultants. Never had any issues with it.

pwhite8314

Hmm...how do you actually pay into the UK NI? Still based on a percentage of your US earnings, and what's the mechanism for actually getting payment to them (assuming you're not paid out of the UK)?

Also, do you plan to return to the UK? I do not, so I guess that might have a vearing on where I choose to pay my NI/SS?

THFC1

I'm not exactly sure how the payment works. I get a deduction from my US payslip and I guess this is then sent to our UK HR office who make the payment. I do plan on returning home and so it makes sense for me to keep contributing.

Michael

The company has an advantage of you not paying US SS and medicare in that they don't have to pay their share of those taxes. However, if you retire in the US, you will not be medicare eligible. Paying the US taxes instead of the UK taxes should be OK since the UK is part of the totalization law so benefits can be received from both governments (probably not additional benefits but you would be medicare eligible).

JAJ

You should have a certificate of coverage from the U.K. to get exemption from the Social Security tax:
http://www.ssa.gov/international/Agr...phlets/uk.html
http://www.dwp.gov.uk/lifeevent/bene...s.asp#azlisted

rew1000

Like most of the other people on this thread, I don't know the specifics for your particular situation, but I'd be really surprised if you were exempt from paying medicare/SS taxes. I believe the liability exists if you are considered a "Resident Alien" by the IRS, which is likely to be true for you at some point, if not already.

The exemption of students, postdocs, exchange visitors etc. is based on the fact that the IRS usually considers certain visa holders (“F,” “J,” “M,” or “Q”) to be nonresident, even if they are present for a prolonged period of time. There are sometimes tax treaty agreements as well, but I doubt they apply to you.

HR departments are not the most reliable sources of advice on these sort of things. I know of someone in similar position to me - I pay SS/medicare tax, he doesn't with zero consequences over 6 years. He has no intention of retiring here, and has been paying UK NI contributions. All these complicated tax issues are only picked up if there was some kind of audit.

Chapter and verse is here, if you're feeling brave: http://www.irs.gov/pub/irs-pdf/p519.pdf

There's even a form for your situation, but I'm not sure what would happen to your employer if you filed it!
http://www.irs.gov/pub/irs-pdf/f8919.pdf

ChocolateBabz

Don't know if this will help but DH is on an L1A Visa. He pays US Federal Income tax as no State Tax in Texas. As it is a 3 year intra-company transfer and he is not considered a permanent employee of his US division he pays UK National Insurance and stays on the UK Pension Scheme as well. We were not sure how this would work as he is paid by the US division. We couldn't believe our luck when we found out that the UK would make the NI contibutions and Pension payments on his behalf while we are here and would not backcharge us. Hooray $1,000 better off each month for the next 3 years

P.S. had to provide the US division with a form from Inland Revenue (that the UK division applied for) stating that he would remain in his home country schemes.

JAJ

I am not aware of anything that bars a U.S. citizen or resident alien from claiming exemption from social security tax under a certificate of coverage from a foreign nation.

This is not like the federal income tax.

Redwing

Why not try your local Social Security office?

Bob

because they are about as much use as a turd sandwich.

JAJ

This page suggests that the Social Security tax is not mandatory for U.S. citizens and resident aliens covered by a social security certificate of coverage.
http://www.irs.gov/businesses/small/...=97160,00.html

meauxna

Nice mind picture. Speak for yourself!
Ours is pretty good.. I suspect YMMV, as always.

BritGuyTN

for whatever reason I had to pay ss and medicare from day 1

but then again I knew I would probably be living here indefinitely