Employees in F-1, J-1, M-1, Q-1 or Q-2 non-immigrant status are exempt from FICA therefore no withholding has to be made. However once these nonimmigrant change their visa status to H-1B, generally beginning from Oct 1st, then they are no longer exempt from FICA. So the employer should review payroll procedures and update tax withholding exemptions for these H-1B employees. U.S. employers must start withholding FICA taxes on the effective date of the change of status to H-1B whether it be October 1st or later whenever change of status to H-1B gets approved.
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Note: This is a blog post by Adhikari Law PLLC and should NOT be construed as a legal advice.