Determining Federal Insurance Contributions Act (FICA) (Social Security Old-Age, Survivors and Disability Insurance (OASDI) and Medicare) withholding, payment, and reporting obligations for cross-border employees can be a complex process, which often depends on a variety of factual and legal considerations. There are many instances in which FICA is not required to be withheld and paid on compensation of cross-border employees. 

Unlike some other countries, the U.S. does not permit voluntary participation in FICA for those preferring such coverage (or their employers, except in the case of Sec. 3121(l) elections). It is also common for benefit plans to restrict coverage to those with FICA wages for employment (as so defined). Andersen’s team of experienced tax professionals can analyze your company’s cross-border employment arrangements and help you determine if you are in full compliance with FICA as well as if you are entitled to a refund.

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