Tax Calculator – Tax Benefits

When choosing to hire international students, your business saves money! Use the Tax Calculator below to see your potential savings based on your employment needs. You can be as flexible as you like with the number of workers, their working hours, and duration of their seasonal J1 employment.

Tax calculator

 
  Number of workers Hours per week Pay per hour ($) Number of weeks Total wages Pay roll tax savings
Regular workers
$49300
$0
J1 workers
$49300
$4165
 
You will save
$4165

If you don’t understand how it works, the below chart gives a detailed explanation:

Payroll Taxes Paid by Employer

FICA

FUTA
Federal unemployment tax

SUTA
State unemployment tax

Social Security

Medicare

US workers

6.2%

1.45%

0.8%

Varies by State and Employer

J1 workers

Exempt

Exempt

Exempt


We at HS Staff are all about providing the fullest possible information to our customers. Here’s an explanation of how US-based businesses can legally save 7.65% off their payroll expenses

When you hire J1 students, they are required to pay a number of taxes – Federal, State, and local. What they DON’T pay are Social Security, Federal Unemployment and Medicare taxes. It is a common practice to match some of the taxes so that a certain percentage of a worker’s wage goes to cover these taxes. These are usually 6.2% for Social Security, up to 6.2% for Federal Unemployment, and 1.45% for Medicare. For foreign seasonal workers, these three figures are zeroes. Thus, you save 7.65% of the total payroll expense, or 8.45% of total employee salaries. Sometimes you can save even more than that. Employees are allowed to take a credit of up to 5.4% for their State Unemployment tax which is less than Federal Unemployment tax rate of 6.2%. In case your State rate is below 5.4%, your maximum credit for Federal Unemployment will become less. The result? Your savings from hiring seasonal J1 workers goes up. You can easily find out more by checking with the IRS Employers Tax Guide Publication 5.15 or contacting the tax and revenue department in your state.

Register now at HS Staff to start employing seasonal workers and cut your payroll tax payments!

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NataliaAge: 19
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Country: Russia
Available from May 5, 2014to September 25, 2014

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