Interns from Europe

izem

We are a non profit organization in the state of Maryland. We have two interns from Poland and germany we want to put on our payroll temporarily. Our payroll company can get them exempted from state and dederal taxes but must deduct Social Security which the interns will not be able to get back once they return home. Is their a federal form that they can complete to exempt them from Social Security withdrawal from their pay?

cebudragonlady

Let me get this straight - you mean to tell us you think that people who come here to work temporarily should not have to pay taxes on income or social security ? Do you treat your US- resident temporary workers like this? Please tell us what part of the Law, chapter and verse, allows you to do what you are suggesting. Something is wrong!

Chari

Balloonman

Chari,
You think that is bad, the Europeans, start with like 4 weeks vacation........some countries it might even be 6!!!!!!
My $0.02 worth.
DJ The Balloonman

hrbanker

izem, check out the instructions on IRS Form 8233. Depending on the country they are from and the type work being done, your foreign employees may be eligible for a tax exemption according to the tax treaty with their individual country. Looking over the form, however, it appears they still have to pay Social Security Tax. They will be required to have a SSN and the form states that it's for taxing purposes and does not entitle them to collect Social Security benefits in the USA. Try this site: [url]http://www.irs.gov/pub/irs-pdf/i8233.pdf[/url]

If that doesn't work, then do a search on "IRS forms", go to the IRS.gov site and search for form 8233. There are several versions of the form and a separate instruction publication. If it's still unclear, a call to the IRS or your tax attorney might be in order.

I would hesitate to exempt them from federal & state tax without having this form properly completed. Good luck.

System

I'm in Chari's corner. While it sounds quite romantically charitable to ease a few more bucks into the pockets of these lovely young guests in our country, I would much rather see the money go where it belongs...into the US tax system and US economy. Foreign aid helped us get in the budgetary fix we're already in. More of it won't help us get out. And those few dollars may be just what we need to make social security possible for ME.

izem

Thanks to all who responded. We have checked with one of the most highly respected immigration and labor attorneys in Washington, DC, and the upshot is that we must take out FICA but nothing else. The reason is quite simple: These are relatively short internships (2 months) at the end of which neither intern will have met the threshold for taxable income. They need to fill out W-4s and that's it.