How does FICA tax work for foreign LLC employers — do I pay both employer and employee shares?
My foreign-owned LLC in Florida has two employees. I understand I need to pay FICA taxes but I'm confused about the split. Do I withhold the employee's portion from their paycheck AND pay a separate employer portion on top? What are the exact rates for 2026? Also, is there a wage cap? One of my employees earns over $180,000 and I want to make sure I'm calculating this correctly. Does the Additional Medicare Tax apply to the employer too?
Related Questions
What Social Security and Medicare amounts do I withhold and match for 2026 wages?
I'm an Indian founder and my US LLC just hired an engineer at 95,000 dollars a year, with a chance her total comp crosses 200,000 with bonuses. The payroll provider obviously does the math, but I sign...
Can a foreign employer really owe U.S. Social Security and Medicare withholding for work performed in the States?
I always thought Social Security and Medicare withholding was mostly a domestic-employer issue, so I was surprised to read that a foreign employer can still have U.S. payroll obligations when services...
What is FUTA and how much does a foreign-owned LLC pay for federal unemployment tax?
I keep seeing references to FUTA when reading about employer taxes for my foreign-owned LLC. I understand FICA but FUTA is confusing me. Is this separate from state unemployment tax? How much is it? I...
Does self-employment tax apply to non-resident alien LLC owners in the U.S.?
I'm a non-resident alien from South Korea who owns a single-member LLC. My accountant mentioned something about self-employment tax being 15.3% on top of income tax. That seems really high. As a non-r...
My spouse is on J-2 and payroll said J visas are exempt from FICA. Is that actually true for a J-2 spouse?
The payroll team seems to be treating every J visa as though it falls under one tax rule, but the IRS pages I found suggest spouses and dependents can be treated differently from the main J-1 scholar ...
If wages are treaty-exempt for income tax, can payroll still have to withhold FICA?
One of our advisers says a treaty may reduce or eliminate income-tax withholding on a founder's compensation, but our payroll provider is still talking about Social Security and Medicare taxes as thou...
I'm a foreign LLC owner hiring my first U.S. employee — what payroll taxes do I owe?
I own a single-member LLC registered in Delaware as a non-resident alien living in the UK. I just hired a full-time employee in Texas to handle customer support. This is my first hire and I have no id...
If a founder ends up working in the U.S. on H-1B status, does FICA usually apply from day one?
I know the company will need immigration counsel separately, but on the tax side I am trying to understand the payroll basics before compensation starts. I have read that some categories of foreign pr...
I'm a foreign LLC owner living in the U.S. — do I owe 'nanny tax' for my household employee?
I'm a non-resident alien who owns a U.S. LLC and I recently moved to the U.S. on a work visa. I hired a housekeeper who comes twice a week and I pay her $500/week in cash. A friend told me I might owe...
Everyone keeps mentioning totalization agreements when payroll crosses borders. What file should we actually maintain if we think one applies?
Our founder is from Germany and now works partly in the United States for the company. Several advisers have mentioned a possible totalization agreement angle for Social Security coverage, but so far ...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
