By: EJ

EJ
Tue, 03 Dec 2019 19:57:39 +0000

In reply to Joe.” target=”_blank” title=”/2019/12/ohio-state-ranked-in-top-10-for-studying-abroad-top-20-for-international-students/comment-page-1/#comment-113681″>Joe.”>/2019/12/ohio-state-ranked-in-top-10-for-studying-abroad-top-20-for-international-students/comment-page-1/#comment-113681″>Joe.

Joe,
I think you are confusing the OPT program itself with the OPT extension for STEM workers. While the extension was created in 2008, the practice of adding a period of full-time work to the end of a student visa dates back to 1947. The tax exemption you talk about does not arise from “student” status; they are not students to the IRS. The real reason is that non-immigrants are not eligible for Social Security or Medicare, so they do not pay into those programs. However, they are still required to pay income tax. The FICA tax rate is 7.65%, so on a recent graduate with an annual salary of $30,000, the employer’s savings would be $2,295. When you consider that the employer has to deal with the cost of turnover as the employment is only valid for 12 months, it seems like a wash.