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Client, a US citizen, working for a foreign cruise line, received a W-2 with only federal taxes withheld. Is client responsible for paying all, half or none of the social security taxes? If responsible, hoe do I enter the info into Lacerte.
Thanks to all for any assistance.
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I found this: "Rev. Rul 92-106. It states that if the employer is foreign and the employee a US person, income taxes must be withheld if the ship touches port in the US. The income is not subject to FICA or FUTA because no services were performed in the US."
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Thanks for the quick response.
So the employee is not responsible to pay any fica taxes on their own?
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If their duties are such that, while in the US they are "off the clock" then there are no services being provided. You can read that ruling for yourself.
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Thank you!!
