HR8972119th CongressWALLET

OPT Fair Tax Act

Sponsored By: Representative Grothman, Glenn [R-WI-6]

Introduced

Summary

Eliminates the payroll-tax exemption for F‑1 students doing Optional Practical Training (OPT). This bill would make OPT earnings count as wages subject to the Federal Insurance Contributions Act (FICA) and Social Security taxes so F‑1 students on OPT would pay payroll taxes on that income.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

Higher payroll taxes for F-1 OPT students

This bill would treat pay by F-1 students on Optional Practical Training (OPT) as wages for Social Security and Medicare (FICA). That would remove the current OPT exemption and make those wages subject to employee FICA withholding. Employers would also owe employer-side payroll taxes on the same wages. The change would apply to services performed in calendar months beginning after the date of enactment. F-1 OPT workers would likely see lower take-home pay, with the exact effect depending on their wages.

Sponsors & CoSponsors

Sponsor

Grothman, Glenn [R-WI-6]

WI • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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