New Residents, FICA exemption?

[DrDudeMD]

Hey all,

I was told by someone in HR that if I contribute at least 9% of my paycheck to a retirement savings plan (e.g. 401k, 403b, etc), I would be exempt from the FICA taxes.

I tried looking this up, but wasn't able to find anything online. Anyone have similar experiences with the FICA taxes?

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[Raryn]

Hey all,

I was told by someone in HR that if I contribute at least 9% of my paycheck to a retirement savings plan (e.g. 401k, 403b, etc), I would be exempt from the FICA taxes.

I tried looking this up, but wasn't able to find anything online. Anyone have similar experiences with the FICA taxes?

This is not the case. The IRS is very clear with new regulations that residents count as employees and have to pay their FICA in full.

The only exemption to that rule that you could possibly be alluding to applies only to employees of specific state government organizations that got out of FICA back in the mid-80s. For example, residents employed by the UC system in CA can get away with paying their 7.X% to a retirement account in lieu of paying it as FICA. And even then, I think they're liable for medicare taxes.

 

[Neuronix]

Residents in Florida are mandated into a retirement account in lieu of FICA. See:

http://hr.ufl.edu/retirement/other/FICA.asp

 

[xrevision]

see: https://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax#Exempted_government_employees

 

[DrDudeMD]

Thanks for the feedback. I guess that wiki post does corroborate what I was told since I will be a gov employee. I'll see when I get my paycheck.

 

[ferning]

Thats huge, anywhere else besides UFL?

Not putting money into that ponzi scheme as well as saving on a pretax basis helps out over 4 yrs

 

[deleted472101]

This was the case at Bellevue Hospital in NYC. I was also looking for references for this.

 

[ferning]

Apprently it was a bunch of places for a refund during certain years, but i could only find florida who still maintains this sweet deal

I'm moving to native american soil

 

[rokshana]

Massachusetts does as well

 

[DoctorMedic]

Ohio mandates 10% to 401a and since we are higher education government employees we don't pay FICA

 

[brodaiga]

I'm in FL, what does this mean?

 

[gutonc]

I'm in FL, what does this mean?

That you make bad choices.

 

[Neuronix]

That you make bad choices.

Hey, you gotta go where you can get a spot!

 

[brodaiga]

That you make bad choices.

if you saw the latinas here, you would change your mind