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This page explains how U.S citizens, resident aliens, and nonresident aliens employed outside the United States by a foreign employer are not generally subject to Social Security and Medicare tax withholding

FS-2023-25, Nov. 2023 — Following a dramatically improved 2023 Filing Season thanks to Inflation Reduction Act (IRA) investments, the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) announced additional improvements taxpayers will experience next Filing Season. 

Describes general rules of FICA taxation for persons employed in U.S. territories (i.e., islands owned by the United States which are not States of the United States).

We didn't receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time.

We didn't receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time.

FS-2022-37, October 2022 — People who work in restaurants, salons, hotels and similar industries often receive tips for the customer service they provide. Tips can be taxable income, but it’s important for people working in these areas to understand important details involving tips.

IR-2023-40, March 7, 2023 — The Internal Revenue Service today issued a renewed warning urging people to carefully review the Employee Retention Credit (ERC) guidelines before trying to claim the credit as promoters continue pushing ineligible people to file.

Au pairs are J-1 visa exchange visitors in the United States who are employed and taxed the same as household employees.

Remuneration for services paid to the employee who is a United States citizen or resident alien who performs services outside the United States for a foreign person are wages for U.S. federal income tax withholding purposes.

Wages paid to resident aliens employed within the United States by an American or foreign employer are subject to Social Security/Medicare Taxes under the same rules that apply to U.S. Citizens.