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Payroll & Taxes

CampStaffUSA is not a tax professional and does not provide tax advice. We simply provide information and helpful links so camps and participants can ensure their own compliance with federal, state and local tax codes.

J-1 participants are employees of the host camp. Therefore, the camp is responsible for complying with all applicable employment laws and all applicable federal, state, and local tax obligations. Camps should process J-1 visa holders through payroll in the same manner that they do for their American staff members.

The Tax Reform Act of 2017 eliminated personal exemptions (which was $4,050 per individual). As a result, J-1 participants will now be taxed on their first dollar of U.S. wage income unless an applicable U.S. Income Tax Treaty provides otherwise. Almost all of CampStaffUSA participants do not fall under a tax treaty.

Key Tax Exemptions

  • Social Security and Medicare Tax (FICA): Most J-1 visa holders are considered nonresidents for tax purposes and are exempt from FICA taxes on wages paid for services allowed by their visa.
  • Federal Unemployment Tax (FUTA): Wages paid to a J-1 nonresident alien are exempt from FUTA tax.

Tax Obligations

  • Income Tax: You are generally required to pay federal, state, and local taxes on income earned in the U.S..
  • Filing Requirement: Every J-1 participant with U.S.-source income must file an annual tax return (Form 1040-NR).

IRS Form W-4

Employers should have all employees (American and J1 participants) complete and submit IRS Form W-4 (Employee’s Withholding Allowance Certificate). J-1 participants are considered nonresident alien employees for tax purposes.  Instructions for participants on filing Form W-4 differ from those of American staff members. For help filling out W-4 forms for your participants, please refer to the IRS’ Special Instructions for Form W-4.

Form I-9 (Employment Eligibility Verification)

Both the camp and participant must complete Form I-9 (Employment Eligibility Verification). The participant completes Section 1, and the camp completes Section 2.

The participant must enter the DS-2019 Program End Date in Section 1 as the date employment authorization expires.

In Section 2, camp may enter: List A document that shows both identity and employment authorization, including a combination of

  • A foreign passport;
  • Form I-94 indicating J-1 nonimmigrant status; and
  • Form DS-2019.

Enter the Student and Exchange Visitor Information System (SEVIS) number as the document number and the progrm end date as the document expiration date.

For additional information, please visit the USCIS site: Form I-9 (Employment Eligibility Verification) Guidance for J-1 Exchange Visitors

Social Security

New J1 participants will need to apply for a Social Security Number. Camps should arrange and assist international staff members in applying through the nearest Social Security Office.

Application Process

  1. Be sure the J1 participant completed a check-in on their CampStaffUSA portal.
  2. Although it only takes 2-3 days for Social Security to see SEVIS validation, it’s recommended to wait 10 days after they’ve checked in before taking them to the closest Social Security Office.
  3. Prepare in advance and make an appointment if you can.
  4. Make sure they bring the following documents with them:
    • Social Security Card Form SS-5. This form can be completed online and printed in advance. ssa.gov/forms/ss-5.pdf
    • I-94. You’ll need to print out the applicant’s most recent I-94. i94.cbp.dhs.gov/I94/#/home
    • Passport
    • Original DS-2019 forms (both pages)
  5. Be patient. It usually takes 2-3 weeks to process an application and up to a month to receive it. If you do not receive the card within 30 days, you should contact the social security office. There have been times where applications are lost and the only thing you can do is reapply.
  6. DO NOT WAIT until after camp. Applications must be submitted not less than 3 weeks from the program end date.

Payroll can be run while waiting for the Social Security numbers.

You can enter a “dummy number” until they receive their card from Social Security. Some employers use all “0”s, others use their SEVIS number.

  • Paper Filers: If the worker applied for a card but didn’t receive the number in time for filing, enter “Applied For” in Box a.
  • Electronic Filers: If the worker applied for a card but didn’t receive the number in time for filing, enter all zeros in the field for the Social Security number.

If a staff member received their Social Security number after you filed your wage report, you can file Form W-2c (Corrected Wage and Tax Statement).

Additional Information:

  • For the latest information on obtaining a Social Security number, please visit the Social Security Administration website.
  • A sponsor letter is not required for J1s, but some Social Security offices may request one.
  • Social Security Administration toll-free number: 1-800-772-1213.
  • Returning participants do not need to apply for a new Social Security Number. If needed, they can visit their local Social Security Office to request a replacement card.

Additional Information on the above can be found at the following links: