Integrated Service Center

OASDI (Social Security & Medicare) Taxes

In general, United States OASDI (Social Security and Medicare) taxes apply to payments of wages for services performed as an employee in the US, regardless of the citizenship or residence of either the employee or the employer.

Exemptions to OASDI

Determination of an exemption from OASDI is based on the calendar year (January-December) you enter the United States. The calendar year may only be a partial year. For example, if you entered the United States on December 31, 2016, 2016 counts as your first calendar year.

Students on F-1 or J-1 visas are exempt from OASDI taxes for the first 5 calendar years.

Scholars (non-students) on J-1 visas are exempt from OASDI taxes for the first 2 calendar years.

Students and scholars on J-2, H-1, E3, and TN visas are required to pay OASDI taxes.

Social Security Number and Individual Taxpayer Identification Number

IRS regulations mandate that Foreign Nationals must have either a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN) in order to receive any tax treaty benefits.

If a foreign national is receiving wages, you must apply for a Social Security number with the Social Security Administration.

If a foreign national is receiving Scholarship or Fellowship payments, but not wages, you may apply for an Individual Taxpayer Identification Number.

When you receive your Social Security Number:

  •  Present your Social Security Card to your department. Your department will update the information in Workday.
  • If you are a Foreign National student, you are also required to present your Social Security Card to the Registration Office, 225 Schmitz Hall, for updating in the Student database.

Failure to notify your department and the Registration Office may result in incorrect taxation.