If you are a U.S. company who employs a foreigner under a work Visa, you may be paying FICA payroll taxes that you do not have to pay. Since FICA taxes deducted from the employee's pay is matched by the employer, this could potentially mean thousands of dollars you are both paying that you don't have to. Under certain tax treaties with a number of foreign countries we have what is called a "Totalization Agreement", that exempts certain foreign employees and employers from having to pay the FICA portion of payroll taxes from wages earned while in the U.S.. A person who earns $70,000 in gross wages would be paying $10,710 in combined FICA taxes that need not be paid. Not all countries have this agreement with the U.S. and certain conditions apply. If you may be in this category, give us a call to see if you may be the lucky winner of a refund.
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