Posts Tagged ‘hire foreign workers’

Hire Foreign Workers

Friday, September 10th, 2010

Many business owners often ask us what is the best way to save on taxes. While there may be many options, today we are going to speak about payroll savings. These savings accumulate if you decide to hire foreign workers. Generally speaking, most employers have to match certain payroll taxes. So, every employee has certain taxes withhold from the paycheck. These taxes generally include Social Security, Federal Income, Local Income, Federal Unemployment, State Unemployment, Medicare, etc. And the employers have to match Social Security, Medicare and Federal Unemployment taxes a cent for a cent. The students do not pay Social Security, Medicare and Federal Unemployment taxes, so the employers also do not pay all these three taxes. Overall, this exclusion accounts for as much as seven percent of payroll savings. If an employer hires several J1 employees, these savings can accumulate in thousands of dollars in a relatively short seasonal time frame.