My H-1B wages may be treaty-exempt for income tax. Can payroll still have to withhold FICA anyway?
The treaty conversation is making everyone think the wage file is either fully exempt or fully taxable, but payroll seems to be a different system with its own rules. I am on H-1B, and I do not want the company to stop the wrong tax simply because one part of the compensation analysis changed.
If treaty wage relief and FICA are really separate questions, I want a clean explanation for the payroll team so the file is not built on the assumption that one answer automatically carries the other.
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