Interns are temporary visitors with nonresident, nonimmigrant status and are not eligible to receive the benefits of U.S. social programs such as Social Security, Medicare and FICA and are therefore EXEMPT from paying these taxes. Therefore be sure you only take out for Federal, State and Local Income Taxes (FUTA).

When they arrive at your hotel they will complete two tax documents, the I-9 Employment Eligibility Verification Form and the W-4 Employees Withholding Allowance Certificate.

Taxes To Pay

Federal Income Tax
State Income Tax
City Income Tax

Not Subject To These Taxes

Social Security Tax
Federal Unemployment

Avoid Common Mistakes

If you have been withholding FICA/FUTA from your participant’s pay, you will need to change withholdings for future pay checks and issue a refund. You can claim a refund of incorrectly paid FICA/FUTA from the IRS when filing your employer’s federal tax return (see the instructions for IRS forms 941 and/or 944 for more information).