Do Non-US Citizens have to pay FICA Taxes?
Yes, non-U.S. citizens who work in the United States usually have to pay FICA taxes, just like U.S. citizens. This includes both Social Security and Medicare taxes. The requirement to pay these taxes depends on their employment status and the type of visa they hold. However, there are some exceptions. Certain nonresident aliens, such as those on specific types of visas (like J-1, F-1, M-1, or Q-1 visas), and certain types of income may be exempt from FICA taxes under specific conditions. Also, the United States has tax treaties with some countries that might exempt their citizens from paying these taxes while working in the U.S.
In general, if a non-U.S. citizen is working in the United States and does not fall under an exemption category, they are required to pay FICA taxes.
What is FICA Tax & How it Works : Rates & Exemptions
FICA stands for Federal Insurance Contributions Act, which is a U.S. federal payroll tax that funds Social Security and Medicare programs. FICA taxes are withheld from employees’ paychecks and are also contributed by employers. The tax consists of two components, Social Security Tax and Medicare Tax. Social Security gives money to retired people, disabled individuals, and some widows and widowers. Medicare is a program that helps older people and some disabled people pay for their medical needs.
Geeky Takeaways:
- The FICA tax, integral to the U.S. tax system, ensures funding for Social Security and Medicare programs.
- Social Security benefits include retirement income, support for the disabled, and assistance to surviving spouses and children of deceased workers.
- Medicare provides health insurance to people aged 65 and older and some younger individuals with disabilities.
Table of Content
- How do FICA Taxes Work?
- Who Pay FICA Tax and Why?
- How are FICA Taxes Calculated?
- Wage Base Limits of FICA Tax
- FICA Tax Exemptions
- Do Non-US Citizens have to pay FICA Taxes?
- Conclusion
- FICA Tax – FAQs