Frequently Asked Questions
Frequently Asked Questions about Wages and Taxes resources for Work & Travel USA Host Employers.
Wages & Taxes
What should I pay international staff?
You should pay what you would pay an American employee doing the same job, always adhering to state minimum wage laws. Information on prevailing wages can be found on the U.S. Department of Labor’s website.
Do I have to provide housing?
While providing housing for students is not mandatory, InterExchange Work and Travel USA asks that you provide or arrange affordable housing for staff in close proximity to the job site.
Do students have Social Security cards?
Yes. The students must apply for Social Security cards when they arrive in the U.S. InterExchange will assist them with this process as part of their orientation in New York City. The students will receive a receipt that shows that they have applied for a Social Security card. The card should arrive within four to six weeks.
How should international staff fill out their W-4?
All InterExchange Work & Travel USA students are required to pay federal, state and local taxes. According to the IRS, students should use their U.S. address, claim single 1 and fill in “NRA” for non-resident alien in line 6 of the W-4.
Are international staff exempt from paying taxes?
No. All InterExchange Work & Travel USA students are required to pay federal, state and local taxes. While participants are all university students in their home countries, the IRS does not consider them students while they are in the U.S. For tax purposes, InterExchange Work & Travel USA students are considered non-resident aliens. International staff must file a tax return and are often eligible for a refund.
Are international staff exempt from Social Security, Medicare tax and unemployment withholdings?
InterExchange Work & Travel USA students are non-resident aliens on a J-1 Visa. While they are subject to federal, state and local taxes, they should not have Social Security, Medicare or federal unemployment withheld. Please consult a tax professional to see if students are exempt from state unemployment taxes in your state. For more detailed tax information, please review the IRS’s Employer Tax Guide and Publication 515 at www.irs.gov.
Do international staff get a W-2 form?
Yes, W-2s should be mailed to them in their home countries as early as possible. Ask your staff to address an envelope that you can use for this purpose. This will help ensure you have their correct international addresses.
