What is the FICA tax?

The FICA tax (Federal Insurance Contributions Act) is a U.S. federal tax withheld directly from payroll to fund two public programs: Social Security (Social Security) and Medicare, which covers health services for the elderly.

It is split between the employee and the employer: a portion comes out of the worker’s wages, and the employer pays a matching contribution. These contributions help secure benefits such as retirement income, disability assistance, and future health coverage.

For workers on an H-1B visa, there is generally no exemption from FICA: the worker is treated like any other employee subject to the contribution. This differs from some other visa categories, such as the F-1, which may qualify for specific exemptions under certain conditions.

Rates and exemption rules change over time and depend on your individual situation. Before making any calculations, it is worth checking the current figures with the official source (IRS) or a tax professional who specializes in nonresidents.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.