Purpose

The purpose of this task is to enter Federal tax data for a non-resident alien employee with other than Income Code 15 and whose country has a tax treaty with the United States.

Helpful Hints

• State and/or Local taxes are not applicable.

Enter Tax Data for NRAs – Other Than Income Code 15

Navigation Path

Main Menu > Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data

Steps

1. Enter employee’s EMPLID.
2. Click the Include History option.
3. Click the Search button.
4. Click the plus (+) sign to insert a new row.  
5. Enter the desired information into the Effective Date field.
6. For Special Withholding Tax Status, select Non-Resident Alien.
7. Tax Status:
   1. For W-4’s 2019 and prior:
      1. Tax Status must be Single
      2. Withholding Allowances MUST :  will be 0 or 1 – unless NRA is from Canada, Mexico, or South Korea (special rules apply)
   2. For W-4 forms dated 2020 and later:
      1. Step1(b) Tax Status must be Single or Married filing separately only
      2. Step 2 Multiple Jobs or Spouse Works only check if you have more than two jobs, check box, cannot check if spouse has a job (refer to Notice 1392 for more guidance).
      3. Step 3  Populate only if from Canada, Mexico, South Korea, or India (special rules apply see Pub 519 and Pub 972 for guidance)
      4. Step 4(a) Should not be filled out.
      5. Step 4(b) Should not be billed out
      6. Step 4(c) Only fill out if the employee has an additional amount listed. This line is where the NRA on the form this when they have no additional amount withheld.
8. Additional Amount is not used.
9. The Additional Percentage field is not used.
10. Exempt from FUT is not used, but should always be checked. Expand section to view.
11. W-4 Processing Status is not used.
12. Lock-In Letter Details is not used.
13. State Tax Options is not used.
14. Tax Treaty/Non-Resident Data:
    1. Enter the desired information into the Country field.
    2. Enter the desired information into the Elig Income Code field.
    3. Enter the desired information into the Treaty ID field.
    4. Form W-9 Received is not used.
    5. Form W-9 Effective Date is not used.
15. Taxpayer ID Number should be populated if no SSN and employee wants to take advantage of a treaty.
16. NRA Withholding Rule applies to non-resident aliens from India only.
17. Expand the Education and Government section:
    1. Enter the desired information into the Date of Entry field.
    2. Select the Form 8233 Received list. Select the Yes list item. Form 8233 is required to be filled out annually (expiration date = 12/31/xx).
    3. Enter the desired information into the Form 8233 Effective Date field.
    4. Enter the desired information into the Form 8233 Expiration Date field.
18. Form W-8 Received is only used for scholarships.
19. Form W-8 Effective Date is only used for scholarships.
20. Form W-8 Expiration Date is only used for scholarships.
21. Continue to the State Tax Data page. If fields are not auto populated fill in the information below.
22. Unselect the Resident checkbox option.
23. Under Special Withholding Tax Status, select the Non-Resident Alien (Fed Rules) option.
24. Tax Status MUST be Single.
25. Withholding Allowances MUST be 0 or 1 unless NRA is from Canada, Mexico, or South Korea (special rules apply).
    1. Additional Amount is not used.
    2. Additional Percentage is not used.
    3. Additional Allowances is not used.
    4. Lock-In Letter Details is not used.
26. Click the Save button.

Result

Tax Treaty information has been entered into the Payroll System for a Non-Resident Alien employee with other than Income Code 15.