OPT Fair Tax Act
Sponsored By: Senator Tom Cotton
Introduced
Summary
Exempts wages earned during Optional Practical Training by F-1 students from Social Security and Medicare payroll taxes. The OPT Fair Tax Act would amend the Internal Revenue Code and the Social Security Act to exclude service by F-1 nonimmigrant students participating in Optional Practical Training from payroll-tax coverage. That would mean employers would not withhold or pay the employee and employer shares of FICA and related Social Security taxes on OPT wages. The exclusion would apply to services performed in calendar months beginning after enactment.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Lower payroll taxes for F-1 OPT
This bill would exclude wages earned during Optional Practical Training (OPT) by F-1 students from Social Security and Medicare payroll taxes (FICA). Employers would not withhold or pay those payroll taxes on OPT wages. The change would apply to services performed in calendar months beginning after the date of enactment of this Act.
Sponsors & CoSponsors
Sponsor
Tom Cotton
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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