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Exemption status of foreign employees with particular visa types


A Nonresident alien is a person working in the United States who is not a U.S. citizen. In most cases they are subject to Federal Withholding, Social Security and Medicare Taxes on wages paid to them for services performed by them in the United States, exceptions are made based on an employee's non-immigrant status.

You, as the employer, are responsible to determine which taxes an employee must pay according to his/her visa status. Intuit cannot recommend to any business how they should set up their employee's taxes and reportable wages based on their visa type.

Use these resources listed below to help you determine the proper employee setup for the most common visa types.


A-visas, D-visas, F-visas, J-visas, M-visas, Q-visa (including F-1, J-1, M-1, or Q-1/Q-2, nonresident alien students), etc., G-visas, H-visas:

If you need additional guidance on visa types and your employee tax setup, contact your accountant or tax professional.


Tax Type Resource to Find Exemption
Social Security & Medicare Foreign Student Liability for Social Security and Medicare Taxes
Alien Liability for Social Security and Medicare Taxes of Foreign Teachers, Foreign Researches, and Other Foreign Professionals
FUTA Aliens Employed in the U.S. - FUTA
Federal Withholding QuickBooks does not support employees who are not subject to Federal Income Tax Wages (Box 1 on the W-2). We do support employees who are exempt from Federal Income Tax (Box 2 on the W-2) per the requirements of the W-4 Form.

If you are unsure of the employee's taxability, reference the links below.

Federal Income Tax Reporting and Withholding on Wages Paid to Aliens and

Publication 515 (2013), Withholding of Tax on Nonresident Aliens and Foreign Entities

State Taxes
State taxability can vary; refer to the individual state tax agency website for specific information. Check out our Payroll Tax Compliance for contact information.



When you are ready, you can set up a new employee in QuickBooks and unmark the taxes as needed. If you have Assisted Payroll and need to unmark taxes, contact Assisted Payroll Support.



Note: Everyone who works in the United States must have an Social Security number (SSN). As an employer, you are required to get each worker's name and SSN for use on each employee's Form W-2. You can also verify the Social Security numbers of your employees.


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