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Process for Taxation of Payment for a Foreign National

Description

Trainees typically arrive on a J-1 visa and are usually at NC State for one semester or less. An example of a Trainee program is IAESTE, International Association for the Exchange of Students for Technical Experience.

Taxation of Payment

The process described below shows the actions required before a foreign national, who is here as an trainee, can receive correct taxation of payment from the University Payroll Department. Payments are subject to 14% federal income tax withholding unless exempted by tax treaty.

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. Trainee
  2. Department Payroll Coordinator or Human Resource representative where the student trains
  3. Foreign National Tax Specialist in the University Payroll Department
  1. Trainee

    1. Make an appointment with Office of International Services (OIS) and bring the following documents:*
      • I-94 card
      • Passport
      • Department's offer letter
      • Form DS-2019
    2. *The effective date for your job action will be the date you meet with OIS.

    3. E-mail the foreign national tax specialist to make an appointment to set up your tax withholding.
    4. Obtain either a U. S. Social Security Administration (SSA) social security number (SSN), an IRS individual taxpayer identification number (ITIN), or a signed affidavit of unknown social security number (SSN).

    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.

  2. Department Payroll Coordinator / HR Representative

    1. Request the paperwork from the principal investigator.
    2. Obtain a dummy social security number from OIS until individuals receive their own social security numbers.
    3. Enter the trainee into the HR system using the VPAF with a flat-rate job code of S960.
    4. Prepare the flat-rate request form and submit to your customer service representative (CSR) in HRIM for approval.
    5. E-mail the foreign national tax specialist, before the first payment is made, with the number of payments and the amount of each.
    6. Enter the payments into Time and Labor in the HR system.
  3. University Payroll Department's Foreign National Tax Specialist

    1. Request a current list of trainees and compare it to trainees who have been processed.
    2. Schedule an appointment with the trainee to set up his tax withholding.
    3. Make copies of the trainee's I-94 card, passport photo page, passport expiration page (if not on photopage), department's offer letter, and Form DS-2019.
    4. Assist trainee with the ITIN application, if necessary.
    5. Determine and enter tax status in Windstar and the HR system.

 

Last Edited: December 3rd, 2010