I am employed in a company in USA. I am currently on F-1 will be applying for H-1B on 04/04/2008. The company I work for has not deducted any taxes whatsoever from my pay so far. Will this be a problem when it come to my H-1B application process and approval? When asken them I was told that student of OPT need not pay any taxes. Kindly let me know if this is a serious problem.

Thanks

While you are exempt from Social Security and Medicare taxes, you are NOT exempt from federal and state income taxes.

These taxes should be withheld, and failing to do so could be a problem next year when you file an income tax return and you have to come up wth a tax payment of several thousands of dollars.