Sponsor
Glenn Grothman
Representative · R-WI
Representative · R-WI
The bill extends FICA taxation to OPT wages, which increases Social Security/Medicare funding and gives OPT students credits toward benefits but reduces their take-home pay and raises costs and compliance burdens for employers and schools.
F-1 students working on OPT will have their earnings counted toward Social Security credits, helping them qualify for and increase future Social Security benefits.
Bringing OPT wages into FICA taxation expands the payroll tax base and increases revenue for Social Security and Medicare, supporting program solvency and funding.
OPT workers will be treated more like other employees for payroll-tax and benefits purposes, creating parity in tax and benefit treatment between international students on OPT and other workers.
F-1 students on OPT will see lower take-home pay because they must pay FICA taxes on wages that were previously exempt.
Employers hiring OPT participants will face higher employer-side FICA costs, increasing the cost of hiring international students and potentially discouraging some hires.
Payroll systems for employers and the administrative processes at universities and schools may need updates, causing compliance complexity and transitional burdens while withholding and reporting are implemented.
Based on analysis of 2 sections of legislative text.
Removes the FICA/Social Security exclusion for F-1 students on OPT so OPT wages become subject to payroll taxes and Social Security coverage.
Makes pay earned by F-1 visa holders working under Optional Practical Training (OPT) count as employment for Social Security and Medicare (FICA) and Social Security Act purposes by removing the existing exclusion for OPT participants; the change applies to services performed in calendar months beginning after the law is enacted. In short, most OPT wages will become subject to payroll taxes and Social Security coverage starting the first full calendar month after enactment.
Official title: To amend the Internal Revenue Code of 1986 to include optional practical training for F-1 visa holders as employment for purposes of taxes under the Federal Insurance Contribution Act and the Social Security Act.
Introduced May 21, 2026 by Glenn Grothman · Last progress May 21, 2026