Hi,

I was in OPT from from March 1st 2005 to FEB28 2006. Then in H1B from Feb 1st to till date. My questions are:-

(1) I started working from June 2005. During my OPT my employer did not pay SS and
Medicare ---Is it right

(2) My employer started paying SS and medicare tax from Feb 1st 2006 ( the day my H- 1 B started). But I have received Statement of social security by saying that " you have been employed in work in which you did not pay Social Security taxes, such as some federal........" Any idea why is that? My pay stub shows that my employer paying SS and Medicare tax from Feb 1st 2006.

NB:- My 2005 W2 forms does not show any amount for the SS tax.

I never been employed in any other work before besides my current job. During my Study ( F1) I had full scholarship from university

(3) Am I receiving this type of Social Security statement because my employer did not pay SS and medicare tax during my OPT or my 2005 W2 forms does not show any SS tax?

(4) What should I do next?

Thanks for your help.

Quote:

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Originally Posted by TAX123

Hi,

I was in OPT from from March 1st 2005 to FEB28 2006. Then in H1B from Feb 1st to till date. My questions are:-

(1) I started working from June 2005. During my OPT my employer did not pay SS and
Medicare ---Is it right

(2) My employer started paying SS and medicare tax from Feb 1st 2006 ( the day my H- 1 B started). But i have received Statement of social security by saying that " you have been employed in work in which you did not pay Social Security taxes, such as some federal........" Any idea why is that? My pay stub shows that my employer paying SS and Medicare tax from Feb 1st 2006.

NB:- My 2005 W2 forms does not show any ammount for the SS tax.

I never been employed in any other work before besides my current job. During my Study ( F1) i had full scholarship from university

(3) Am i receving this type of Social Security statement because my employer did not pay SS and medicare tax during my OPT or my 2005 W2 forms does not show any SS tax?

(4) What should i do next?

Thanks for your help.

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I'm not clear on the statement you received. Is it just an information statement telling you that in the 2005 year you didn't pay social security tax? If so, that sounds correct.

Or is it saying that you should have paid social security tax but you failed to do so?

Finally, how long were you on an F1 visa?

(1) Yes, that is correct. You are not liable for Social Security and Medicare taxes during OPT as you are on F-1 visa status.

(2) Also correct. Once you converted to H-1B status, you became liable for Social Security and Medicare taxes.

(3) It sounds like a standard statement. I would not worry about it.

(4) You will file a normal tax return (1040, 1040A, 1040EZ) for 2006, as you are now a resident alien.

Does it mean Social Security Statement is based on last year Tax Return ( W2). In case of Tax123 since 2005 W2/ Tax return did not show any SS and Medicare Tax ( as Tax123 was in F1/OPT) that's why Tax123 has received this kind of Social Security Statement? AtlantaTaxExpert could please confirm this?
Also, could you confirm that Social Security Statement is not based on current year pay slip which Tax123 has received from Feb 1st 2006 ( after Tax123 started H1-B)

I assume it is the annual statement the Social Security Administration issues. When he said Social Security statement, I did not realize what he was talking about.

The employer submits an information return to the IRS saying exactly how much each employee makes and exactly Social Security and Medicare taxes were paid on his behalf. THAT is the basis for this annual statement. The amount is also reported on the W-2.

AtlantaTaxExpert ,

It is annual statement which Social Security Administration issues. Then it menas my employer is not paying SS and Medicare taxes although it is showing in my pay slip from my H1-B start date?

What should I do now? What prove I can ask from my employer that will show me that they are paying my SS and Medicare taxes?

My employer is saying since I was on OPT up to Jan 31st and 2005 W2 did not show any SS and Medicare tax that why I got this kind of statement---Is this a true statement?

Please help me.

Your employer was correct for not withholding these taxes in 2005.

I assume he is withholding them starting with your first paycheck when you started your H-1B visa.

If so, you are good to go!