Non Resident Alien Tax (NRAT) Compliance Presented by Alex, Darlene, Stephanie & Danessa Business Partners Round Table August 9, 2018

NRAT Compliance In order to comply with provisions of the Internal Revenue Code, Treasury Department regulations, and the California Revenue and Taxation Code, CSU campuses and auxiliary organizations are required to ensure compliance by either withholding taxes from payments made to (or on behalf of) non-resident aliens, or properly administering withholding rates or tax treaty benefits.  This impacts many campus departments that initiate and process payment transactions. California State University, Sacramento – Non-Resident Alien Tax Compliance Policy (NRAT) Office of the Chancellor – Technical Letter HR/Salary 2003-07 IRS Publication 515 – Withholding of Tax on Nonresident Aliens and Foreign Entities

NRAT Compliance Payroll Services and International Programs and Global Engagement (IPGE) use a 3rd party software to assist in determining taxation for Nonresident Aliens who receive various types of compensation on campus. These include: Guest Speakers Honorariums Non Resident Alien Employees (staff and faculty) International Student Athletes who may receive scholarship funds

NRAT Compliance For Guest Speakers, Honorariums Contact Accounts Payable or Payroll prior to the engagement date for assistance with filling out the appropriate paperwork See Accounts Payable website under Resources for Non-Resident Alien Information Proper documentation must be filled out and identification presented prior to payment processing

NRAT Compliance For Faculty and Staff: Contact Payroll on the new hire process prior to start date See Payroll’s website for Nonresident Alien Taxation Information Proper documentation and identification must be submitted to meet employment regulations and the I-9 verification process prior to any payment processing

For International Students Athletes NRAT Compliance For International Students Athletes Contact International Programs and Global Engagement (IPGE) for assistance with International Student Athletes The IRS requires that non qualified scholarships for international student athletes are tracked and maintained Tracking also ensures Sac State withholds and disburses funds in accordance with US Income Tax Treaties To assist with compliance, IPGE also advises athletes on SSN/ITIN application processes

NRAT Compliance Things to keep in mind! Must have proper authorization documents prior to any payments being processed such as visa, passport, work authorization papers, etc. May be requested to sign into the campus Foreign National Information System (FNIS) in order to determine taxation and tax treaty data Reach out to the various areas as discussed above for assistance prior to any payment requests to ensure compliance

NRAT Compliance Any questions?

NRAT Compliance Contact Information Payroll – Darlene Edelman & Danessa Quintos Phone: 916-278-6211 Email: Dq79@csus.edu IPGE - Alex Shigenaga Phone: 916-278-7470 Email: alex.shigenaga@csus.edu NRAT Policy: https://www.csus.edu/umanual/hr/UMN12125.htm Payroll’s Website: https://www.csus.edu/hr/departments/payroll/nonresident%20alien%20tax%20information.html IPGE’s Website: https://www.csus.edu/ipge/