I need help with tax withholding and want to know if somebody could help me with it.
I just received my first weekly pay check (it had just 3 working days). I am an Indian national (been in US < 5 years) and working on OPT in California.
Here are the details:

Earnings: $587.50
Fed Withholding $63.22
Fed MED/EE $8.52
Fed OASD/EE $24.68
CA VDI FTDI $2.94
CA Withholding $14.19

Can somebody please tell me if these are the right amounts? If not, what can I do to correct it. Will I get refund later? Any help would be appreciated.

On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843. Your income is not subject to FICA taxes but you will pay income taxes and CA VDI FTDI.

Tell your employer that you are nonresident and they must not withhold FICA taxes, which are Fed MED/EE and Fed OASD/EE). You may print pages 54 of IRS Publication 519: Tax For Aliens (Social Security and Medicare tax) and give it to your employer. Ask them for refund of SS tax and Medicare Tax. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

Thank you MukatA for answering my question. So, I do have to pay Fed Withholding $63.22 and CA Withholding $14.19 and these won't be refunded at all ?

Yes. When you file your 2011 tax return, you will report this as taxes already paid.
If you paid more federal tax than as per your tax return, you will get a refund.

Hi,
Is there any other exception Indian students have with respect to federal or state withholding ?
They mention a treaty between India and US for indian students studying here.
Is that applicable to Indian students on OPT ? If so, how can we avail it.

Is there any other exception which is common to foreign nationals.

Thanks for your help.

Yes, Indian students on F-1 and OPT can claim treaty benefit for 5 years. They can claim standard deduction in stead of itemized deduction. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

Thanks MukatA. The link helps a lot. Appreciate your prompt reply.