Social Security and Medicare (FICA) Exemptions for Non-US Citizens

Last updated: October 15, 2026

Some non-US citizens working in the United States are exempt from Social Security and Medicare (FICA) taxes. When an exemption applies, neither the employee nor the employer pays FICA on those wages. Income tax withholding (federal, state, and local) is not affected. Only FICA is exempt.

Important: Warp does not provide immigration or personal tax advice. Determining visa status, work authorization, and FICA exemption eligibility is the responsibility of the employer and employee. If you’re unsure whether an exemption applies, consult a tax professional or immigration attorney before requesting it in Warp.

Who qualifies?

  • F-1 visa holders (students, including those on OPT), while in nonresident alien status for tax purposes, are generally exempt from FICA for their first 5 calendar years in the US.

  • J-1 visa holders are generally exempt from FICA for a limited time based on their category, typically the first 2 calendar years of their stay in the US.

  • H-2A agricultural workers: employers and workers are exempt from Social Security and Medicare taxes under a separate rule.

    • Federal income tax withholding is optional for H-2A workers unless the worker submits a completed Form W-4 requesting it.

    • State income tax rules vary by state.

    • Employers must still report H-2A wages on Form W-2, even when no taxes are withheld.

How to apply an exemption in Warp

  1. Employee submits a request. The employee creates a tax exemption request from the Employee dashboard > Taxes > New Tax Exemption.

  2. Employer approves the request. The employer approves it from the admin dashboard > Tax & Compliance > Tax Exemptions.

  3. Verify before payroll. Confirm the exemption is in place before approving the employee’s first payroll.

If FICA was withheld before the exemption was applied

  1. Update the exemption going forward. Apply the employee’s exemption so future payrolls stop withholding FICA.

  2. Contact Warp Support to correct prior payrolls. Let us know the employee and the affected pay dates. Warp will run a correction to fix the payroll records and adjust your federal tax filings. Warp requires employer authorization to proceed with this.

How the refund works

A correction fixes the payroll record and the tax filings, but it doesn’t pay the employee back directly. Once the correction is processed, the IRS refunds the over-paid FICA to the employer. The employer then reimburses the employee for their share directly, outside of Warp.

Important considerations

  • Exemptions are time-limited. Track each employee’s visa start date so FICA withholding begins once the exemption period ends.

  • The exemption covers FICA only. Federal, state, and local income tax withholding still applies.

  • Confirm eligibility first. Applying an exemption incorrectly can result in back taxes and penalties. Confirm the employee qualifies before requesting the exemption in Warp, and consult a tax professional or immigration attorney if there’s any uncertainty.