OPT employees must still file taxes and pay income tax, but FICA (Social Security + Medicare) is exempt for both employer and employee as long as the worker remains in F-1 nonresident status (typically up to 5 calendar years).
For an OPT worker in F-1 status, the employer saves approximately 7.65% on payroll taxes compared to hiring a regular U.S. worker.
An OPT worker after graduating can remain in F1 status for 3 years while employed with these exemptions.
6 comments
[ 1654 ms ] story [ 186 ms ] threadComputer science has one of the highest unemployment rates - https://www.newsweek.com/computer-science-popular-college-ma... - May 23rd, 2025
Modification of Registration Requirement for Petitioners Seeking To File Cap-Subject H-1B Petitions - https://www.federalregister.gov/documents/2021/01/08/2021-00... - January 8th, 2025
Companies are even incentivized to hire over Americans due to OPT and no payroll tax.
What industries are next?
For an OPT worker in F-1 status, the employer saves approximately 7.65% on payroll taxes compared to hiring a regular U.S. worker.
An OPT worker after graduating can remain in F1 status for 3 years while employed with these exemptions.