Why Do Indians Pay Social Security on US Work Visa?

Indians (and other foreign nationals) on a work visa in countries like the U.S. pay for Social Security because they are considered employees working legally and earning income in that country. Here's a clear explanation:

Why They Pay Social Security Taxes:

1. Legal Requirement:

o U.S. law requires all employees, regardless of nationality, to pay Social Security and Medicare taxes if they earn wages.

2. Employee Status:

o Indians on work visas (like H-1B or L-1) are considered regular employees, so both the employee and employer must contribute a portion of the salary to Social Security.

3. Access to Benefits:

o If they pay into the system long enough (usually 10 years or 40 credits), they may qualify for Social Security benefits (like retirement or disability) in the future.

India–U.S. Social Security Agreement:

• India and the U.S. do not currently have a Totalization Agreement, which means:

o Indian workers may not be able to claim back the Social Security contributions if they return to India before qualifying for benefits.

o As a result, they may lose the money paid into the system unless they stay and work in the U.S. long enough to qualify.

Summary:

Legal employment in the U.S. : All workers must pay Social Security taxes

No current U.S.–India agreement : No exemption or refund unless benefits are earned

Possible benefit in future : If qualified, can claim benefits later in life