Is it possible for an individual with an H1B Visa to be exempt from social security and medicare taxes?

ANSWER

The BIDaWIZ Team's Answer:

It is possible, but generally unlikely as per IRS Publication 15-E. An H1b visa worker who is paid wages in exchange for personal services he/she performs within the USA is liable for U.S. social security and medicare taxes on such wages, no matter whether they are a resident alien or nonresident alien. There are exceptions:

1) He/she is a national of a country with which the USA has signed an International Social Security Agreement (also known as a Totalization Agreement)

2) He has signed an agreement with his country of nationality which requires that he pay social security tax on his U.S. wages to his country of nationality, and

3) He has delivered to his U.S. employer a Certificate of Coverage issued either by his country of nationality or by the U.S. Social Security Administration which proves that under the appropriate Totalization Agreement the H-1b worker is exempt from U.S. social security and medicare taxes.

References: IRS Publication 15-E & 519
State: New York