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Aliens Employed in the United States and Social Security Taxes

Wages paid to resident aliens employed within the United States by an American or foreign employer are subject to Social Security/Medicare taxes under the same rules that apply to U.S. citizens.

Wages paid to nonresident aliens employed within the United States by an American or foreign employer, in general, are subject to Social Security/Medicare taxes for services performed by them within the United States, with certain exceptions based on their nonimmigrant status.

Aliens Exempt from US Social Security Taxes

A-visas: Employees of foreign governments, their families, and their servants are exempt on salaries paid to them in their official capacities as foreign government employees.

D-visas: Crew members of a ship or aircraft may be exempt if the vessel is a foreign vessel and the employer is a foreign employer, or if the services are performed outside of the United States.

F-visas, J-visas, M-visas, Q-visas: Nonresident alien students, scholars, professors, teachers, trainees, researchers, and other aliens temporarily present in the United States in F-1,J-1,M-1, or Q-1/Q-2 nonimmigrant status are exempt from Social Security / Medicare Taxes on wages paid to them for services performed within the United States as long as such services are allowed by the United States Citizenship and Immigration Services (USCIS) for these nonimmigrant statuses, and such services are performed to carry out the purposes for which they were admitted into the United States.

Exmept Employment includes:

On-campus student employment up to 20 hours a week (40 hrs during summer vacations)

Off-campus student employment allowed by USCIS

Practical Training student employment on or off campus

On-campus employment as professor, teacher or researcher

Limitations on exemption:

The exemption does not apply to spouses and children in F-2, J-2, M2, or Q-3 nonimmigrant status.

The exemption does not apply to employment not allowed by USCIS or to employment not closely connected to the purpose for which they were admitted into the United States.

The exemption does not apply to nonimmigrants in F-1,J-1,M-1,or Q1/Q-2 status who change nonimmigrant status to a status which is not exempt or to a special protected status.

The exemption does not apply to nonimmigrants in F-1,J-1,M-1, or Q1/Q-2 status who become resident aliens for tax purposes.

G-visas: Employees of international organizations are exempt from Social Security/Medicare taxes on wages paid to them for services performed within the United States in their official capacity as employees of such organizations.

Note:

The exemption does not automatically apply to servants of employees of such international organizations.

The exemption does not apply to spouses and children of nonimmigrants in G status who are employed in the United States by anyone other than an international organization.

H-visas: Certain nonimmigrants in H-2 and H-2A status are exempt from Social Security/Medicare taxes.

An H-2 nonimmigrant who is a resident of the Philippines and who performs services in Guam

An H-2A nonimmigrant admitted into the United States temporarily to perform agricultural labor

The United States has signed Totalization Agreements with certain countries, which may affect an alien's liablity for Social Security or Medicare taxes. The complete texts of the Totalization Agreements may be found on the Social Security Administration's web site.

Wages paid for certain types of services are exempt from Social Security/Medicare taxes.

Examples of exempt services:

Compensation paid to a duly ordained, commissioned, or licensed minister of a
church in the exercise of his ministry

Compensation paid to a child under the age of 18 employed by his father or mother if
paid under certain conditions

Compensation for services performed as a student nurse if paid under certain
conditions