I'm in H1B status and changing employers this week, moving from one state university to another.

The new employer tells me I have to pay SS tax. However, I was NOT paying SS with the previous employer. When I was hired, someone in the payroll dept. at the prior employer made me fill out some forms that exempted me from SS. Instead, I had something called Deferred Compensation.

I've been looking online for more than 2 hours trying to find info on this subject. Can anyone help?

Thank you!

Your new employer is correct; you became liable for FICA (Social Security and Medicare) taxes the day your H-1B visa became effective.

Your previous employer probably exempted you from FICA taxes while you worked under the F-1 visa. That exemption was correct as long as you worked under the F-1 visa.

The exemption SHOULD have ended when you converted to the H-1B visa.

Hi ATE & thanks for your input, however that's not it. I indeed started F1/OPT with no FICA payments. I switched to H1B. I paid FICA my first 2-3 paychecks on H1B until someone in the payroll dept. at my old employer said I can get out of it due to my H1B status. I wish I remembered how and what I filed. The only thing I remember was that FICA tax stopped. My money (the 6% you're supposed to contribute to it) went to deferred compensation instead.

Aren't there any special provisions for state or government employees in regards to FICA, or college professors and FICA? Exemptions for employees in this situation?

Thank you!


Your new employer is correct; you became liable for FICA (Social Security and Medicare) taxes the day your H-1B visa became effective.

Your previous employer probably exempted you from FICA taxes while you worked under the F-1 visa. That exemption was correct as long as you worked under the F-1 visa.

The exemption SHOULD have ended when you converted to the H-1B visa.

BTW, I did pay medicare the entire time on H1B. It was only the social sec. tax I was exempt from.

Thanks again for any help you can provide.



Your new employer is correct; you became liable for FICA (Social Security and Medicare) taxes the day your H-1B visa became effective.

Your previous employer probably exempted you from FICA taxes while you worked under the F-1 visa. That exemption was correct as long as you worked under the F-1 visa.

The exemption SHOULD have ended when you converted to the H-1B visa.

Amit:

Certain state and local government employees (and state universities fall into that categry) CAN opt out of Social Security participation in favor of a local pension plan for those government employees. If that is what happened, then you are okay.

To summarize this: I'm in H1B status, state (Florida) government employee, professor. No exemptions from social security tax?

As noted, you probably have the option to opt out of participating in Social Security.

Call your payroll or human resource department and ASK!

Amit:

Certain state and local government employees (and state universities fall into that categry) CAN opt out of Social Security participation in favor of a local pension plan for those government employees. If that is what happened, then you are okay.

Yes! That's exactly what I need? Could you point me to specific legislation/rule etc. on the subject? I need to convince my new employer to set it up for me. Thanks again, ATE rocks :)

I cannot provide you with those citations, but it is common knowledge among the payroll departments for local and state governments.

The issue in your case seems to be whether you are eligible to enter into the state-run pension plan which supplants Social Security. If you were in one Florida-run university and opted out of Social Security, you logically should be allowed to do the same at the second university in Florida.