Are International Staff Exempt From Social Security, Medicare, and Unemployment Taxes?
J-1 Visa holders are exempt from Social Security, Medicare, and unemployment taxes but must still pay others.
Students on the Work & Travel USA program with a J-1 Visa are exempt from Social Security, Medicare, and federal unemployment withholdings.
However, they're still responsible for federal, state, and local taxes. Consult a tax professional to check if they're exempt from state unemployment taxes where your business operates.
For more details, review the IRS's Employer Tax Guide and Publication 515 on the IRS website.