See the link.

http://www.irs.gov/businesses/small/international/article/0,,id=106287,00.html

I quoted some of the text in the following. I think your HR is confused by the part "if an alien is considered a resident alien". This means if you really have a green card, but I think you don;t have it. However, if you are on H1B then you are considered to intend to become a resident alien so you need to pay SS & Medicare.

So, go back to your HR and point out this to them and get your refund.

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A nonresident alien temporarily in the United States as a nonimmigrant on an "F-1," "J-1," "M-1," or "Q-1" visa is not subject to social security and Medicare taxes on pay for services performed to carry out the purpose for which the alien was admitted to the United States. Social security and Medicare taxes should not be withheld or paid on this amount. This exemption from social security and Medicare taxes also applies to employment performed under Curricular Practical Training and Optional Practical Training, on or off campus, by foreign students in "F-1," "J-1," "M-1" or "Q" nonimmigrant status as long as the employment is authorized by the U.S. Citizenship and Immigration Service. However, if an alien is considered a resident alien, that pay is subject to social security and Medicare taxes even though the alien is still in one of the nonimmigrant statuses mentioned above. This rule also applies to FUTA (unemployment) taxes paid by the employer.

所有跟帖： 

• But... -OPTer- ♀ (647 bytes) () 04/07/2004 postreply 12:24:27

• Taxing resident. -mems- ♀ (457 bytes) () 04/07/2004 postreply 12:41:20