Can Justworks process payments to an employee on a Visa or Green Card?
Justworks can process payments to employees with most work visas. A Green Card (Form I-551) is a permanent resident visa. An employee with a Green Card is taxed exactly like a regular US citizen and can be paid through Justworks.
Are Visa holders exempt from FICA and FUTA?
In general, resident aliens have the same employment tax obligations as U.S. citizens. Nonresident aliens, such as those with J-1 or F-1 visas, may be exempt from FICA and FUTA, provided that the work is allowed pursuant to the visa and the services are carried out for the purpose the visa was issued. These are merely guidelines and Justworks is unable to provide tax or legal advice. If you need help determining whether an exemption applies to a particular employee, consult with a tax or legal advisor.
Marking an Employee as Exempt from FICA/FUTA
If you have employees who are on foreign visas that are exempt from FICA/FUTA taxes, you can mark them as such in Justworks.
From their profile, you can navigate to the Job Information tab, and go to the ‘Current Position’ box. You’ll see if a FICA/FUTA status has been entered. To enter one, hit the ‘edit’ link towards the top right of that box.
Please note that marking an employee as exempt may automatically schedule a tax refund to the employee and to your company, if relevant taxes have been taken out of payments that they should not have been.
Additionally, you will not be able to make additional changes once submitting a status. If you made a mistake or need additional help, please reach out to your Account Manager or our Customer Success Team.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.