Does the U.S. company need to withhold payroll taxes for an L-1 worker?

Yes. When a professional on an L-1 visa begins working in the United States, they are treated, for employment and tax purposes, like any other employee. This means the U.S. company is generally required to withhold and remit the payroll taxes applicable to the wages paid.

These payroll taxes typically include contributions to Social Security and Medicare (the set of taxes known as FICA), along with other applicable withholdings for anyone working on U.S. soil. Immigration status alone does not eliminate these obligations.

Specific rules may vary by state, the nature of the contract, and the form of compensation, but the responsibility to make correct withholdings is generally a core part of employer compliance. Getting this wrong exposes the company to penalties.

For that reason, the safest approach is to address payroll and immigration together, with support from tax and immigration professionals, and to confirm the applicable rules through up-to-date official sources.

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.