Miami, Florida – Employees and employers in Miami, Florida, usually both contribute to Social Security taxes at a rate of 6.2% of earnings, up to the $168,600 wage cap in 2024. The Social Security Administration reported that approximately 180 million individuals paid these taxes in 2023, with few exceptions available for opting out. However, certain groups, such as eligible student workers, qualifying religious group members, certain government employees, and some nonresident aliens, may avoid paying these taxes.
One of the main groups that may be exempt from paying Social Security taxes are eligible student workers. Students who work for the same educational institution may be exempt until they finish their studies, as long as the job is temporary and offered because of their student status. However, any other sources of income will still be subject to taxation.
Qualifying religious group members may also avoid paying Social Security taxes if they belong to a recognized religion that does not believe in using insurance benefits. To qualify for this exemption, the religion must have been established by December 31, 1950, and adequate provisions for members must be in place. Individuals can file IRS Form 4029 for the exemption, which requires giving up potential Social Security benefits.
Certain government employees may not need to pay Social Security taxes if they participate in a pension program that serves as a substitute for Social Security benefits. This exemption may also apply to government positions falling under specific exclusions, such as emergency, election, and agricultural workers. Additionally, foreign government employees engaged in official work are often exempt from paying Social Security taxes.
Some nonresident aliens working in the U.S. may also be exempt from Social Security taxes, depending on their occupation. Temporary education professionals, researchers, au pairs, physicians, and foreign government workers may qualify for this exemption. Given the complex nature of these exemptions and the importance of immigration status details, seeking guidance from a tax professional is advisable.