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-   -   Employer Taxes (https://www.askmehelpdesk.com/showthread.php?t=590759)

  • Aug 2, 2011, 12:49 PM
    pkolla1
    Employer Taxes
    Hi, I am on OPT. I am currently on W2 with an employer. I get deducted my Federal and state taxes. Will my employer pay federal and state taxes same amount as what I pay? Does the paycheck calculators online show the combined amount the employer and employee pays or it shows what I pay and the employer pays the same amount at the back for his company tax filing?
  • Aug 2, 2011, 01:04 PM
    JudyKayTee

    Are you asking about Federal and State INCOME tax? If so, no, your employer pays no part of your taxes. These taxes are YOUR responsibility.

    I don't know what you mean by "at the back for his company tax filing."
  • Aug 2, 2011, 01:09 PM
    taxesforaliens
    Are you may asking about Social Security and Medicare? Employees and employers would each pay half of these.
    However, if you are a non-resident alien on OPT you are not liable for social security and Medicare taxes
    http://www.irs.gov/businesses/small/international/article/0, id=129427,00.html
  • Aug 2, 2011, 01:15 PM
    ebaines

    You're confusing two different things:

    1. Payroll taxes (social security and medicare). Both you and your employer pay the same amount of payroll tax, which for 2011 is 4.2% for social security (to a max of $4485.60 per year) and 1.45% for medicare. The social security percentage has been decreased from its normal level of 6.2% for calendar year 2011 as part of the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010."

    2. Income taxes. Your employer withholds a certain amount of money for your income taxes, for both federal and state/local taxes (if applicable where you live). This comes only from you - your employer does not pay the same. The companay may have to pay its own income taxes based on the profit of the business, but that is not at all tied to your income taxes.

    If you are using a paycheck calculator it ought to show the amount that is deducted from your pay check, and hence what your net pay is.
  • Aug 2, 2011, 01:19 PM
    pkolla1
    Thanks for all your suggestion. My employer told me that on OPT, he pays a part of my federal taxes. Just want to confirm that he pays nothing extra on me.
  • Aug 2, 2011, 01:21 PM
    pkolla1
    Comment on JudyKayTee's post
    Actually he said he will pay part of federeal taxes. So just want to confirm that he pays nothing on me except his profits which I don't care. Thanks for your suggestions guys.
  • Aug 2, 2011, 01:53 PM
    ebaines

    I missed the part about you being on OPT. You should be exempt from paying payroll taxes at all, so the only withholding tax deduction would be for income taxes (federal and state/local). I don't understand why your employer is telling you that he pays some of your federal taxes.
  • Aug 2, 2011, 01:58 PM
    pkolla1
    Comment on ebaines's post
    Thanks for the info. It really helped me save a few bucks. I really appreciate it.

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