Reminder to Employers to Make Payroll Adjustments for Employees Who Changed to H-1B Status

Employees who were selected in the H-1B lottery and who were approved for change of status from F-1 or J-1 to H-1B beginning October 1^st may require adjustments to their payroll withholdings during the next payroll run. H-1B employees are subject to Federal Insurance Contributions Act (FICA) withholding. Employees who were F-1 students working with an Employment Authorization Document (EAD) during a period of Optional Practical Training (OPT) and certain J-1 exchange visitors may not have been subject to FICA withholding. For these employees, the change from FICA exempt to FICA non-exempt should be reflected at the end of this pay period.

Also, wages offered to H-1B employees in the USCIS application documents and the Labor Condition Application also become effective when an employee obtains H-1B status.