[pps-news] Regulations for Non-Resident Alien Employees for Federal Tax Purposes

[Gabe Nwandu]

November 15, 2005

 

TO:       All Departments

FR:       Payroll Office

RE:       Regulations for Non-Resident Alien Employees for Federal Tax
Purposes

 

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This is a reminder that ALL non-citizens (except for Permanent Residents-PR)
must complete a new Certificate of Foreign Status for Federal Tax
Withholding (UC W-8BEN) for the calendar year 2006. A report listing the
individuals affected by this e-mail has been sent to each department. Please
forward the completed original form to the Payroll Office for review no
later than December 9, 2005. The form, instructions, and frequently asked
questions, can be viewed and printed from this web address:

http://www.ucop.edu/ucophome/cao/paycoord/w8ben.pdf.

 

In addition to form UC W-8BEN, employees who are exempt from Federal tax
withholding under a tax treaty must also complete a new Form 8233 and the
applicable tax treaty statement. Form 8233 can be viewed and printed from
this web address: http://www.ucop.edu/ucophome/cao/paycoord/ttform8233.pdf.
The tax treaty statements are also available at:
http://www.ucop.edu/ucophome/cao/paycoord/taxstate.html.

 

In order for the Federal tax exemption to be granted on a timely basis for
checks issued on January 1 2006, all forms must be received in the Payroll
Office no later than December 9, 2005. Once it has been determined that the
tax exemption has been granted for the New Year, the Payroll Office will
enter the tax exemption on-line. The department will receive a Post
Authorization Notification (PAN).

 

Those employees who are currently exempt from federal tax withholding under
a tax treaty for year 2005 and who do not submit new forms for year 2006,
will be taxed at a single allowance with one exemption (S-1) starting with
the January 1, 2006 pay check. An additional Non-Resident Alien (NRA) tax
will also be assessed. Currently, the additional NRA tax rate is $33.10 per
month.

 

Non-citizens who meet the "substantial presence test" may complete a new
form UC W-4/DE4 as a "resident alien for tax purposes" if they wish to
change the number of allowances being claimed presently.  Additional
information about Non-Resident Alien taxation can be found at the Payroll
web site: http://www.accounting.ucr.edu/alien.htm.

 

If you have questions regarding taxation of non-resident aliens, please
contact Elena Mateos in the Payroll Office at extension 2-1958.

 

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Gabe Nwandu - MBA, CPA.

Director - Payroll, Travel and Disbursements

UC Riverside, Riverside, CA 92521

Tel: 951-827-1956; Fax: 951-827-3314

E-mail: gabe.nwandu at ucr.edu; Internet: http://accounting.ucr.edu/  

 

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