Video instructions and help with filling out and completing Are Form 843 Abated
Okay for this video i wanted to quickly cover a request for a refund of fica taxes so fica taxes are payroll taxes withheld from your wages and so in certain cases in the u.s you might be exempt from fica taxes and so if you have them withheld from your paycheck you can file a refund claim to get those back so i've got one slide in front of us here with some of the rules and then an example uh form 843 which is the filing that's required in order to get this refund so generally if you are living and working in the u.s for a us-based employer your wages are going to be subject to federal payroll tax that is the baseline rule that applies to 99 of people that are living and working in the united states um the payroll tax is assessed under the um federal insurance contributions act that's where we get fica from and the tax rates um as of the end of 2022 um and going forward foreseeably here is going to be 6.2 percent um of social security tax and then a 1.45 medicare tax um these are assessed on the employee wages and then the employer has to match it um so it's basically these amounts times two in total but you as the employer are responsible for half so if we look at an example here we've got john he's an accountant for a company in florida he makes 40 000 a year which is all going to be subject to fica so john's employer has to take 2 480 of social security tax out of his paychecks throughout the year so that's six point two percent times forty and then five hundred and eighty dollars in medicare right so one point four five times his 40k salary um these amounts are deducted from his paychecks and reported on a form w-2 at year end okay so what are the exceptions well um there are basically two big exceptions one is for religious reasons which i won't cover on this slide but you can actually get an exemption from fica if you are part of a religious group and want to opt out of the system the second one is the example we have in front of us right so certain types of non-residents that are in the u.s on a temporary basis under certain types of visas might be exempt from fica taxes so student visas um f1s m1s j1s where you are allowed to be in the us for university but you can also work at the same time in a limited capacity if you're on one of those visas you can earn a wage but you're generally exempt from fica q1 visas and then certain types of agricultural workers under an h2a that are temporarily in the u.s can get those exemptions as well so if you're working in the u.s under ...