Non-Resident Alien Taxation OSU Payroll Office Anita Gurule (541)

Outline of presentation n Form W-4 - Non-Resident Filing Requirements n CO-NRA - The Non-Resident Alien Information Request Form n Tax Treaties - What, Why and When

Non-Resident Alien W-4 Filing REQUIREMENT n Box 3 - Single n Box Allowance n Non-Residents are not allowed to file EXEMPT

Exceptions to the Non-Resident W-4 Filing Requirement MEXICO, CANADA & KOREA n Box 3 - Must file Single n Box 5 - May file more than 1 allowance INDIA - STUDENTS ONLY! n Box 3 - Must file Single n Box 5 - May file more than 1 allowance

The W-4 Default n If the Non-Resident Employee refuses to file a W-4 as outlined in the W-4 requirement - then income taxes will be withheld at the rate of Single - Zero allowances, the maximum rate. Cf. Treas. Regs (f)(2)-(1)e

Please Remember for the W-4! n For any employee: If the W-4 has been altered (ie. Allowances scribbled out and re-written) the W-4 will be defaulted to Single-0 and the employee will be required to file a new W-4. n University ID# must not be used on the W-4. We must have the employees SSN.

W-4 Exercise -What is wrong with these W-4’s? n Form 1 NRA filed exempt n Form 2 Allowances scratched out n Form 3 University ID # instead of SSN

CO-NRA - Oregon University Systems Alien Information Request Form n Payroll and the OUS Controller’s office use the CO-NRA to determine an employee’s tax status. n The CO-NRA is required for all Non- Resident Alien employees, including those with H1-B and TN visas.

Important Details - CO-NRA n Copies of the I-94 and I-20 or DS-2019 (formerly the IAP-66) must accompany the CO-NRA. n It is important to use a current CO-NRA (check the year on the backside of the form). n The employee must complete and sign the CO-NRA. By signing it, they are verifying the information on it is correct.

Tax Treaties - Form 8233 n 46 Available tax treaties for employees of OSU. n Not guaranteed that an employee is eligible for a tax treaty. n Country and status type (teaching / research vs. student / trainee) specific.

More on Tax Treaties... n The 8233 must be accompanied by an Attachment Letter provided by the OUS Controller’s Office. Attachment Letters are available in the Payroll Office. n Please contact me if you have any questions concerning a tax treaty. n More information concerning tax treaties is available in IRS Publication 901.

Tricky Tax Treaties n US/Canada Treaty is retroactively taxable if the employee earns more than $10,000 during the calendar year. n US/Germany Treaty for Students is retroactively taxable if the student visit exceeds 4 years. n Teaching/Research Treaties with India, The Netherlands, Thailand, and the UK are retroactively taxable if the visit exceeds two years.

Non-Resident Alien FICA Exemption n Non-Resident Alien Employees in F, J, M or Q Visa status are FICA exempt. n Only while employee is a Non-Resident and employment is consistent with the purpose of the visit.

Additional Resources n IRS Publication U.S. Tax Guide for Aliens n IRS Publication 15 - Circular E, Employer’s Tax Guide

Any Questions?