31 Jan 2013

CNMI companies employing Filipinos claiming federal tax refunds

11:31 am on 31 January 2013

In the Northern Marianas, companies employing workers from the Philippines under the transitional Commonwealth-only worker programme are preparing to claim federal tax refunds.

This comes more than one month after the U.S. Internal Revenue Service announced that Filipinos working in the Northern Marianas need not pay federal taxes up to the 31st of December 2014, when the immigration transition period ends.

At the time it was unclear whether Filipino employees and their employers could be refunded their Federal Insurance Contribution Act, or FICA, tax contributions.

The Saipan Tribune paper reports that FICA covers Social Security and Medicare taxes.

Claims can be made for the period from October 2011 to December 2012.