Employers Must Withhold FICA Taxes for Students Changing Status to H-1B Beginning October 1
As students and scholars began changing status from F-1, J-1 or other FICA exempt statuses to H-1B on October 1, these employees are now subject to FICA taxes upon the effective date of their H-1B status.
All employers and employees are required to pay social security and Medicare taxes. However, the Internal Revenue Code and the Social Security Act provide an exemption for students, scholars, teachers, researchers, trainees, physicians, au pairs, and summer camp workers in F-1, J-1, M-1, Q-1 or Q-2 non-immigrant visa status. Once these individuals convert to an H-1B worker status, employers must commence the withholding of FICA taxes.
As most H-1B change of statuses became effective October 1, 2019, employers are advised to confirm with payroll departments or third-party payroll processors that each employee’s FICA withholding is reflected on his/her pay stub from the effective date of his/her H-1B status.
Please contact your Mintz Immigration attorney for additional questions.
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