Social Security and Medicare not withheld from W-2

[AlexAllen]

Hello, looking for some advice here. I have a client that is a non-resident alien but has a SSN. He had five W-2's in 2024 and one out of the five did not withhold any Social Security or Medicare but the other W-2's did. Why could this be? Something to do with his employer payroll or something to do with his non-resident status. Thanks in advance!

[George4Tacks]

It could be an employer that does not participate in SS/Medicare. Teachers, many Goverment employees, .... 

[AlexAllen]

It's a W-2 from the University of Wisconsin System. I've seen many of these before from different clients and SS and Med. are always withheld so I'm thinking it might have something to do with citizenship status?

[George4Tacks]

It is amazing what internet searches can find. https://www.wisconsin.edu/ohrwd/benefits/general-employee-info/payroll/

Under Taxes

Employees Exempt from Taxes:

• Advanced Opportunity Fellows, Fellows, Grad Interns/Trainees, Post-Doc Fellows, and Scholars/Trainees are exempt from Social Security and Medicare taxes. These employees are not exempt from federal and state income tax but the University will not withhold federal or state income tax from their earnings. Employees may be responsible for paying taxes on income when they file their tax return if they work in one of these positions. See IRS Publications 505 and IRS Publication 970 for more information.
• Universities of Wisconsin student employees are exempt from Social Security and Medicare taxes if enrolled and attending classes as a graduate or undergraduate student at the University of Wisconsin on at least a half-time basis. Half-time status is defined by each institution and is determined at the end of the add/drop period each semester. See UW System Administrative Policy 206 (formerly G18A), Student FICA Exemptions for specific rules.