H-2A workers are exempt from U.S. Social Security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. H-2A workers are not subject to mandatory withholding of U.S. federal income tax unless Backup Withholding applies. State and local income tax withholding rules vary and may apply. North Carolina H-2A workers are not subject to mandatory withholding of State income tax.