Tag Archives: withholding

H-2A workers don’t pay Social Security (FICA) tax, neither do the millionaires who are exploiting them

Foreign agricultural workers temporarily admitted into the United States on H-2A visas are exempt from U.S. Social Security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. This is true whether they are resident aliens or nonresident aliens.

In addition, compensation paid to H-2A agricultural workers for services performed in connection with the H-2A visa is not considered to be “wages” for purposes of federal income tax withholding, and thus is not subject to mandatory withholding of U.S. federal income tax…Internal Revenue Service

More than 160,000 new temporary (up to three years extension allowed) workers were issued H-2A Visas last year, with about half of those going to Georgia, North Carolina, Florida, Washington and California. Their employers did not pay the company share (6.2%) for FICA (Social Security) or Medicare tax (1.45%). Their bosses didn’t even withhold income taxes, making net pay almost the same same as gross pay. Continue reading →

Everyone was watching the girl in the teeny bikini, just like the public is now looking for a big tax cut

As I entered the general manager’s office in the Gimbel’s Cheltenham department store, the mood was surly. Picking up an ad for my Philadelphia newspaper was usually pleasant. Sometimes conversation about merchandising for the 250,000 square foot emporium. Other times small talk and smiles, but not today.

It was a Spring afternoon in the late 1970s, and two hours earlier a tall blonde, wearing only a string bikini and high heels, strolled into the store and began walking from department to department, finally covering all three floors in about 45 minutes. She did not go unnoticed by the store staff or customers, and more than a few males seemed to wander after her at a safe distance, pretending to be interested in this or that sale display.

Ten minutes after she left, the Fine Jewelry department reported items worth several thousand dollars had been shoplifted. Then, other managers began counting goods and finding shortages.

It seems that while the blonde was walking, two accomplices were taking the goods. Continue reading →

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