An international student on an F-1 visa is facing a major issue due to an employer error. The US tech firm reportedly failed to deduct Federal Insurance Contributions Act tax from the student’s salary.
The student has recently completed five years in the US. Under federal rules, social security tax withholding applies after an F-1 student crosses the five-year threshold.
FICA tax is deducted from the paychecks of US residents. It does not apply to non-resident workers, which is why the tax was not deducted earlier.
The problem arose when the employer realised the mistake. The firm is now demanding immediate repayment of back taxes covering the period from 2023 to 2025.
Failure to repay the amount could have serious immigration consequences. Unpaid federal taxes can negatively affect future Adjustment of Status applications.
Experts have explained that since the student filed taxes as a resident, the payment is legally due. However, it is unlikely that the employer is asking the student to cover the employer’s share of the tax.
The student has been advised to factor in the tax benefits received while filing as a resident. These benefits may help reduce the overall amount payable.
Another option is to negotiate a structured payment plan with the employer. Experts also stress the importance of calculating and verifying the exact tax amount owed before making any payment.
Telugu box office has made it a habit to blow hot and cold based on…
Vijay has been facing multiple controversies in recent months, including the divorce issue and the…
