20 Dec 2011

CNMI opposed to additional tax for foreign workers

9:48 am on 20 December 2011

The Commonwealth of the Northern Mariana Islands government is opposing additional taxation for foreign workers.

The government is awaiting clarification from the Internal Revenue Service on the application of federal taxes among workers from the Philippines and Korea.

The administration of Governor Benigno Fitial has yet to receive a response to determine whether Filipino workers are no longer exempted from paying Federal Insurance Contribution Act taxes because of the implementation of federal immigration in the CNMI.

The Act covers Social Security and Medicare taxes.

Many private sector employers with Filipino and Korean workers are awaiting the decision, before deducting the taxes from their employees' wages.

A minimum wage earner in the CNMI pays over 45 US dollars in FICA taxes a month.