Filipino and Korean workers in the Northern Mariana Islands are expected to receive a deduction in their paychecks for United States Social Security and Medicare taxes.
The cut is a result of the federalization of CNMI immigration.
The US Internal Revenue Service says Filipino workers in the CNMI are no longer exempt to the Federal Insurance Contribution Act, unless they hold a valid H-2 US visa.
The Act covers Social Security and Medicare taxes.
The development means the taxes will be deducted from most Filipino and Korean workers' payroll, in addition to the local taxes they currently pay the CNMI government.
Most Filipino and Korean workers have previously been exempt from paying these federal social security taxes.
