Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Phil,

The part of Section 3121 that you quoted seems to support the American company withholding Social Security and Medicare since she was employed (B) outside the United States by a citizen or resident of the United States as an employee for an American Employer.
Section 3121(b) does state ...the term, "employment" means any service,...which is designated as employment or recognized as equivalent to employment under an agreement entered into under section 233 of the Social Security Act; except that such term shall not include-- ...(4) service performed by an individual on or in connection with a vessel not an American vessel (probably true)..., if (A) the individual is employed on and in connection with such vessel or aircraft, when outside the United States (yes) AND (B)(i) such individual is not a citizen of the United States (but she is) or (ii) the employer is not an American employer (but it is). It does not appear that she meets either of the conditions of (B) which means that her employer should have deducted her half of Social Security and Medicare.

I hate to have her overpay her taxes, but the safest thing seems to be to have her pay her half of Social Security and Medicare.

Thanks very much for pointing me to Section 3121.

WithaT
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.