TN Visa and SS taxes & Medicare and medicare for TN H1

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QUESTION:
Hello,
Recently my employer has discovered that I was not being charged with the
with holding of both the SS taxes and Medicare taxes from January 2000 until
April 2003.
During that period I was working under a TN visa. I am a canadian citizen.
I have since received a Green Card.
My employer's HR dept. is now telling me I owe some $7000.00.
Are there any exemptions for Canadian citizens working under a TN status?
Thank you for your time.
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david ingram replies:
This happens quite regularly.  There are no exemptions in the ordinary sense of the word. 
However, "If" you had continued to be a rsdient of Canada and filed a Canadian return each year as a self employed person (with one contracted employer to qualify for the TN) AND paid Canadain income tax and boith halves of the Canada Pension Plan, you would be exempt.
I doubt that you did that.
That also applies to an H1 visa.
In the case of intercompany transfers on an L1 Visa, there is an exemption process for up to five years.  To invoke it, your employer has to write to the Social Security administration and ask for permission to exempt you from Social Security because your EMPLOYER is payiong the Canada Pension Plan instead.You do NOT want to participate in this if it is "your" intention to try and remain inthe US because "you" will end up with a smaller pension when you most need it.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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