Non-resident aliens' payroll taxes differ from US citizens' taxes. A number of nations have tax treaties with the US that exempt non-resident foreigners from all or a portion of federal tax withholdings. Certain exemptions from federal taxes and FICA/Medicare taxes are granted to certain kinds of VISA holders. Full-time students who travel to the US to attend an approved institution or university are eligible for an F-1 VISA. After completing their studies, these students might stay in the United States for a long time by applying for Optional Practical Training (OPT) in their major subject of study. Similar to an F-1 VISA, a J-1 VISA is intended for teachers and researchers working in a particular sector for a predetermined period of time.
If an F-1 or J-1 VISA holder is hired for personal services while in the United States, they are both exempt from FICA/Medicare tax. If their nation has a tax treaty with the US, they might also be free from federal tax withholding. Certain treaties limit the amount of money that can be earned before taxes are applied, while other accords exempt all wages from taxes. What employers need to know about treating these workers for payroll tax reasons will be covered in this webinar. the particular paperwork that must be filed at year-end and the forms they must fill out in order to obtain a tax treaty exemption. Additionally, what should be done if their nation does not have a tax treaty?
I'll discuss the many kinds of payroll records that need to be kept on file for a predetermined period of time. There are some forms that you may not think of as payroll documents, but they are. Regarding these documents, many states have laws that differ from the federal requirements. I will discuss some of these states and provide information on how to learn more about their laws.
We'll talk about the various document types and how long you need to retain them. Timesheets, payroll adjustments, wage additions and deductions, state taxes, and many other things will fall under this category.
Why should atttend this:
The laws that apply to non-resident aliens who enter the US on an F-1 or J-1 VISA are generally unknown to employers. There are numerous varieties of VISAs, and each one has unique tax ramifications. All other employees must have payroll taxes withheld, but these two particular groups are exempt. When incorrect taxes are withheld from these workers, it may cause problems.
Traveling overseas to study and teach in the United States is becoming more and more common. Employers must know how to handle workers who may apply to work for their firm and be on the lookout for various VISA types. Since they are new to our nation, these workers are unaware of their rights and obligations. They look to the Employer for guidance.
Additionally, tax treaties benefit both the employer and the employee. These workers are also exempt from or have some employer taxes waived. When the right paperwork is filled out and these people are treated correctly in terms of taxes, the employer may also save money.
Participants will learn:
• A fundamental comprehension of these two VISA categories
• Advice on which taxes to withhold and which they are exempt from.
• Which forms the employer and employee must fill out.
• Advice on tax treaties and how to approach these workers as an employer.
• How to submit paperwork at the conclusion of the fiscal year.
• Useful resources for obtaining the data required for tax treaties.
Area covered in the session:
• Variations among these VISA categories • What tax returns are these employee salaries included on?
• The appropriate paperwork to submit for exemptions under tax treaties
• Employee Tax Treatment
• Deadlines for filing tax forms
• Varying tax treatment based on the treaty's articles
Who should attend this:
Debbie Cash, CPP is a Manager of TLM Implementation at G&A Partners. She was formerly a Payroll Tax/Time and Attendance Specialist at Employer Advantage LLC. G&A Partners is a Professional Employer Organization (PEO) that offers payroll, human resources, benefits management, risk management, and accounting services for businesses and they recently acquired Employer Advantage LLC a former PEO. She has been with the organization since 2006.
Debbie earned an Associates Degree in Accounting from MSSU in 1985 and a Bachelors Degree in General Business from MSSU in 2006. She obtained her Certified Payroll Professional Certification in October 2006. She has 30+ years of experience processing payroll and payroll taxes for various different companies and professions.
Debbie worked as a Payroll Specialist at Missouri Southern State University from 1993 to March 2006. She attended the International Tax Conference in Wisconsin in 2005 and specialized in International Tax for Student Visa’s. She also worked for Joplin R-8 School District from 1990 to 1993.
