GTN Mobility Tax Blog

Foreign nationals employed within the United States are subject to US federal tax rules, but those rules don’t apply uniformly across all tax types. While income tax obligations often depend on tax residency, payroll taxes, specifically Social Security and Medicare taxes, follow a different set of rules. Employees working in the US on an F-1 or J-1 visa may qualify for a temporary exemption from FICA tax withholding, depending on their visa status, tax residency, and the nature of their work. 

An offer to take on an international assignment is often seen by employees as both a vote of confidence from their employer and a valuable opportunity for career growth. Though both are true, it’s also important to look beyond the professional benefits and consider the logistical, financial, and regulatory implications involved—particularly around immigration, tax compliance, and compensation across both the Home and Host countries.

As the future of work continues to evolve, providing a “positive employee experience” is top of mind for companies. While some organizations have gone back to in-office working arrangements, many have retained a full or partial remote workforce culture. These businesses see the provision of a flexible workplace as critical to not only retaining key employees, but also in recruiting top talent to fill essential job duties. And while this incentive is a benefit for the employee and employer, there are important duty of care responsibilities that need to be considered when you have a remote workforce.