As an employer, you want to be aware of the tax policies that effect your J-1 visa trainee. Below is IRS information regarding students and exchange visitors.
Generally, services performed by a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which they were admitted to the United States. This means that there will be no withholding of social security or Medicare taxes from the pay they receive for these services. These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment.
To read the entire publication, please visit the IRS Web site.
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