No Federal and State Taxes withheld for F1/J1 Visa Employee

NetSuite Payroll complies with the F1/J1 Visa payroll tax regulations.  This includes exempting the employee from Social Security and Medicare Taxes.

 

Marking F1/J1 Visa checkbox on the Payroll tab of the employee record exempts the employee from Social Security and Medicare for payroll purposes.  If the Federal and/or State taxes are not calculated in the paycheck, perform the following steps:

 

1. Review the employee's net taxable earning, filing status, number of allowances/exemptions and check if it meets the minimum taxable amount for the Federal and State withholding.  Please see the tax tables from the Internal Revenue Service and official state websites. 

a. To review the taxable earnings, navigate to:

Transactions > Employees > Create Individual Paycheck > List > View

Click Summary Tab

Review Earnings and reduce by the Pre-tax deduction amounts

 

b. To view the employee status and exemptions, navigate to:

Lists > Employees > Employees > View

Click Payroll tab >Taxes subtab

Review Filing Status and Exemptions/Allowances

 

c. Calculate the tax amount using taxable earnings based on the Tax table under the appropriate filing status and exemptions

Note: Zero tax amount is possible if the earning is too low to require any withholding.

 

2. Check for possible state-specific laws. User may contact their tax consultant or verify with the state tax agency directly.

 

For more current information on Federal Tax Tables, please see the official website of the Internal Revenue Service (IRS):

1. www.irs.gov/pub/irs-pdf/p15.pdf

2. http://www.irs.gov/uac/Publication-15-(Circular-E),-Employer's-Tax-Guide

 

 

Disclaimer: This article is written with the undertaking that tax forms, rules and laws are constantly changing and the topic is updated at the publish date.  We are not providing tax consulting and have no control over the websites provided in the article. 

This article does not constitute tax, legal, or accounting advice and neither NetSuite, nor its agents, employees, or representatives are in the business of offering such advice.  If you have any questions concerning your situation, please consult your tax, legal, and accounting advisors.