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Neda

H1B FICO taxes

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So you have to pay the money even though you don't get the services??

Yes.

It's one’s choice to enter in USA and work on H1b.

Most of the European countries have treaty with USA and their citizens can get all of the SS tax money to their country and it can be allocated to similar plan.

Rather complaining, we should ask our country’s government to do similar treaty.

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It's one’s choice to enter in USA and work on H1b.

Most of the European countries have treaty with USA and their citizens can get all of the SS tax money to their country and it can be allocated to similar plan.

Forget about H1. Think about US born people, they work hard pay taxes and return they get nothing??

Rather complaining, we should ask our country’s government to do similar treaty.

I am just trying to understand the process. I don't know why you feel that I was complaining, of course if its good for next generation people we will ask our govt to do so.

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So you have to pay the money even though you don't get the services??

Yes.

You get the services once you have paid into the system for 40 quarters/10 years.

The same is true for Americans. Americans who have not paid into the system for 10 years don't get any services out of it, either.

It is just how it works.

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Americans who have not paid into the system for 10 years don't get any services out of it, either.

It is just how it works.

Exactly, if you don't pay then you don't get any services, that means if I don't pay these taxes then I won't get any SS benefits once I retire.So it will be up to the employee whether he/she wants to pay these taxes or not.

Some people may think that 401k is better than SS benefits.

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Forget about H1. Think about US born people, they work hard pay taxes and return they get nothing??

I am just trying to understand the process. I don't know why you feel that I was complaining, of course if its good for next generation people we will ask our govt to do so.

Don't take it personal :)

My answer for all H1b holders who want the reason behind SS taxes but not getting anything in return (if they work less than 10 years).

For Americans, it's less likes that they would work for less than 10 years in whole life.

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Paying social security is simply part of working in the U.S. It is not some sort of optional pay in - pay out plan for which you can choose to opt out.

It is applied the same for all persons who work in the U.S. regardless of citizenship or legal immigration status. For example, my father is a retired university professor. Over his career he taught in the U.S. for over the 10 year minimum. When he retired he had been teaching at a college in our home country (not India) for nearly 20 years. As a retired professor he receives the college pension, our home county government pension, and a U.S. social security check (partial amount based on the number of years he worked in the U.S.). The reverse is also true (by treaty), if I choose retire in the U.S (after getting my permanent residency at whatever point that is ...), then I would receive both a social security check and a home country government pension check mailed to me in the U.S. for the years I had worked in my home country.

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Forget about H1. Think about US born people, they work hard pay taxes and return they get nothing??

Yes. If they work less than 10 years, they wouldn't get social security benefits. The same as with everybody else who works here with a work permit.

I am just trying to understand the process.

Just go to the social security website, www.ssa.gov. It is all explained there. It is not rocket science.

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Paying social security is simply part of working in the U.S. It is not some sort of optional pay in - pay out plan for which you can choose to opt out.

catx, here is my understanding about the SS program.

"You pay now and receive the benefits after you retire". If this is correct, then whey the SS budget is in deficit?? People who paid the money is getting it back later, that means it should never run out of money.

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Paying social security is simply part of working in the U.S. It is not some sort of optional pay in - pay out plan for which you can choose to opt out.

You mean to say that, it's up to me whether I wan to pay these taxes or not.

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Yes.

You get the services once you have paid into the system for 40 quarters/10 years.

The same is true for Americans. Americans who have not paid into the system for 10 years don't get any services out of it, either.

It is just how it works.

If I pay now and receive it later, then why the SS budge is in deficit?

I mean no. of people paying = no. of people receiving, moreover paid amount > receiving amount.

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Yes. If they work less than 10 years, they wouldn't get social security benefits. The same as with everybody else who works here with a work permit.

Just go to the social security website, www.ssa.gov. It is all explained there. It is not rocket science.

Yaa.. I got the info from that website. It says, if you don't pay then you won't receive it.

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You mean to say that, it's up to me whether I wan to pay these taxes or not.

It is not up to you. You work in the US, you pay these taxes. There is no choice.

Or, if you don't want to pay these taxes, your only choice is to not work in the US.

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If I pay now and receive it later, then why the SS budge is in deficit?

I mean no. of people paying = no. of people receiving, moreover paid amount > receiving amount.

As I said, please learn about this stuff. It is NOT like a bank.

The money you pay in is used to pay retirement benefits for CURRENT retirees.

In other words, no. of people paying <> no of people receiving.

When you are retired, the money you get comes from people who are then working.

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catx, here is my understanding about the SS program.

"You pay now and receive the benefits after you retire". If this is correct, then whey the SS budget is in deficit?? People who paid the money is getting it back later, that means it should never run out of money.

=> Search for Baby boomer.

In coming 10 years more people will retire than working. This will cause the deficit in SS funds.

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Exactly, if you don't pay then you don't get any services, that means if I don't pay these taxes then I won't get any SS benefits once I retire.So it will be up to the employee whether he/she wants to pay these taxes or not.

The employee has NO choice. These taxes absolutely have to be paid. It is the LAW! Period. End of story.

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As I said, please learn about this stuff. It is NOT like a bank.

The money you pay in is used to pay retirement benefits for CURRENT retirees.

In other words, no. of people paying <> no of people receiving.

When you are retired, the money you get comes from people who are then working.

so what happens if no.of people receiving is more than no.of people paying, and it continues for years??

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It is not up to you. You work in the US, you pay these taxes. There is no choice.

Or, if you don't want to pay these taxes, your only choice is to not work in the US.

how far it is fair if I don't receive any SS benefits after I retire??

Because you said, I pay for current retirees and by the time I retire their are more people to receive than no.of people pay??

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The employee has NO choice. These taxes absolutely have to be paid. It is the LAW! Period. End of story.

I didn't said that we should not pay these taxes.

I asked why? You said we will get it when you retire, but that's not guaranteed.

Then I asked,why should I pay when their is no guaranty?- you said that' LAW.

This is not the end of the story, this is the beginning of the end which will effect everyone in US.

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how far it is fair if I don't receive any SS benefits after I retire??

As fair as for Americans who don't work for 10 years.

If you wish to retire abroad, and qualify for social security payments, you can get them abroad.

Because you said, I pay for current retirees and by the time I retire their are more people to receive than no.of people pay??

Well, make sure you have kids ;)

And nobody said it has to be the only retirement money. There is a reason why there is the 401(k).

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so what happens if no.of people receiving is more than no.of people paying, and it continues for years??

That is an unlikely scenario. You getting killed in a car accident is more likely.

If necessary, the government would make changes.

And it still is better than the things that can and have happened to 401(k)s. Lots of 401(ks) got pretty much wiped out during the dot-com crash, and then again during the 2008 recession.

In short, nothing is safe in life. Get used to it.

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I didn't said that we should not pay these taxes.

I asked why?

VERY simple: It is the law!

That's all there is to it.

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