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

[Gabe Nwandu]

November 20, 2006

 

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 2007. 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 8, 2006. 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, 2007, all forms must be received in the
Payroll Office no later than December 8, 2006. 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 2006 and who do not submit new forms for
year 2007, will be taxed at a single allowance with one exemption (S-1)
starting with the January 1, 2007 pay check. 

 

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.

 

*******************************

Gabe Nwandu - MBA, CPA.

Director - Payroll, Travel and Disbursements

University of California, Accounting Department

Riverside, CA. 92521

Tel: 951.827.1956;  Fax: 951.827.3314

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

 

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