I am an O-1 creator on U.S. payroll. Should I assume FICA applies from day one unless totalization says otherwise?
My tax team keeps circling around treaty questions, but payroll still feels unclear. I am on O-1 status, getting wages through a U.S. company, and I do not want the wage file built on the wrong intuition because people keep mentally comparing my case to student or exchange-visitor rules that probably do not apply.
I want the clean default rule. If O-1 payroll should start with Social Security and Medicare tax liability and then only back off if a totalization agreement changes the result, I would rather build the file that way than overcomplicate it at the outset.
Related Questions
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...
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 ...
If we think a totalization agreement may apply, do we need the certificate before the first paycheck?
One adviser says yes because payroll should be built around real documentation, while another says we can just assume the agreement applies and fix the file later if anyone asks. Those are very differ...
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...
If I put myself on U.S. payroll while living part of the year in the States, does FICA usually apply?
I am a founder from South Africa and my LLC is considering putting me on payroll because I now spend meaningful time working from the United States. My instinct was that being foreign might keep payro...
I am on F-1 OPT and my employer withheld FICA, but I have been in the U.S. fewer than five calendar years. Is that likely wrong?
I am an engineer from India working on OPT after graduating, and payroll withheld Social Security and Medicare taxes from the first paycheck. That might be correct, but after reading the IRS foreign-s...
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 t...
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...
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 ...
My nonresident employee says a treaty exempts some wages and wants to give us Form 8233. How should we think about that file?
We are a small foreign-owned LLC and one new U.S.-based hire says she is a nonresident alien and may be treaty-exempt on part of her compensation. She mentioned Form 8233, which I had never dealt with...
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.
