In some cases, an employee's Social Security tax exemption is automatic because the employer does not withhold for OASDI/EE. In other cases, tax exemption is not automatic and must be applied for withIRS Form 4029: Application for Exemption from Social Security and Medicare Taxes and Waiver of...
Revenues from FICA taxes directly fund Social Security and Medicare programs. Read this article to learn more about the FICA tax and what it is.