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Teacher / Researcher (exchange visitor)

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Process for Taxation of Payment for a Foreign National

Description

A foreign national teacher / researcher is teaching or conducting research in a permanent employment position at NC State University.

Taxation of Payment

The process described below shows the actions required before a foreign national, who is here as a teacher / researcher, can receive correct taxation of payment from the University Payroll Department. Unless exempted by Tax Treaty, earnings are subject to federal and state income tax withholding calculated from a graduated formula.

Responsible People

Three people are involved in this taxation of the payment process. Learn the actions you should take in this process by choosing, who you are, from the following list:

  1. Teacher / Researcher
  2. Department Payroll Coordinator or Human Resource representative where the student works
  3. Foreign National Tax Specialist in the University Payroll Office
  1. Teacher / Researcher

    1. Report to the Office of International Services with the following documents:
      • I-94 card
      • Passport
      • Form DS-2019
      • Department's offer letter
      • I-797

      If you are on a J-1 visa, report to the Office of International Services, all other visa types report ot the Office of International Employment with the following documents.

    2. E-mail the foreign national tax specialist to make an appointment to set up your tax withholding.
    3. Note: Payment you receive is considered wages in the United States and is subject to employment taxes. You may be exempt from employment taxes, depending on your visa status or a tax treaty between your country and the United States. If you do not meet with the foreign national tax specialist to adjust your tax status, you will be taxed as a United States citizen, which will include withholding all federal and state taxes, as well as social security and Medicare taxes.

    4. Apply for a social security number through the Social Security Administration. (SSA)
  2. Note: You must pick up your paycheck at the University Payroll department until your social security number (SSN) is received. After you receive your SSN, you must enroll for direct deposit of your paycheck.

    Note: You are responsible for filing a federal and state income tax return each year. If you finish your assignment and leave the United States, you are still responsible for filing these income tax returns.

  3. Department Payroll Coordinator / HR Representative

    1. Enter the teacher / researcher employee on the HR system.
    2. Get a dummy social security number from OIS (if a J-1 visa) or OIE (all other visas) until individuals receive their own social security numbers.
  4. University Payroll Department's Foreign National Tax Specialist

    1. Meet with the foreign national teacher / researcher to determine tax status.
    2. Make copies of the teacher / researcher's I-94 card, passport photo page, passport expiration page (if not on photopage), department offer letter, Form I-797, and Form DS-2019.
    3. Determine and enter tax status in Windstar and the HR system.

 

Last Edited: December 3rd, 2010