Receiving payments in the U.S. Angela Gwinn

Size: px

Start display at page:

Download "Receiving payments in the U.S. Angela Gwinn"

Spencer Randall
5 years ago
Views:

1 Receiving payments in the U.S. Angela Gwinn

2 Payroll Payroll Department is part of the Office of Human Resources. 720 University Place, 2 nd floor in Evanston Abbott Hall, 8 th floor in Chicago We pay all employees at the university including all assistantships, scholarships/fellowships (stipends), and temporary wages.

3 Forms Required to be Paid Personal Data Form- Includes address and personal information and must include a current local address. Direct deposit- Enrollment is required online at nuhr.northwestern.edu or a paycard is issued (not the same as CAESAR). FNIS (Foreign National s Information System) Employment Eligibility Verification Form I-9. All available at

4 Form I-9 Employment Eligibility Verification Form I-9 is mandatory and requires passport, I-94 card, and immigration document (I-20 or DS-2019). Complete section 1 online at northwestern.i9servicecenter.com and then provide documentation in your department or the Payroll Office. Section 1 of your I-9 must be completed by 9/20 and your I-9 should be fully completed by 9/21. If your I-9 information isn t complete by 9/24, you will not be paid on September 28 th.

Form I-9 Login https://northwestern.i9servicecenter.

5 Form I-9 Login - Use that you check- does not need to be NU . - Start date is 9/1/12. - School is where you are studying (Not TGS)

6 Form I-9 I-94 number End date from I-20 or DS-2019

7 Payroll Pay Dates You will be paid once a month on the last business day of each month beginning Friday, September 28 th. If your FNIS, I9, and Personal Data Form, isn t complete and submitted by Friday, September 21 st, you will be paid late.

8 Foreign National Information System (FNIS) You should have already received an request to complete our online Foreign National Information System (FNIS) which explains the process. Please let us know if you have not received your . First, you log in and enter your data. Next, we send you an within 24 hours informing you that your forms are ready to be printed and brought to the Payroll Office. When you receive this second , visit us with your passport, I-20 or DS-2019, and forms. Please wait for this second before stopping by.

9 Foreign National Information System (FNIS)

10 Tax Treaties Some countries have tax treaties, which are bilateral agreements that can exempt some or all of an individuals income from taxes. Your FNIS forms will include all required tax forms and tax treaty forms, if eligible. Those eligible for tax treaties will only receive the treaty once they have their taxpayer identification number (ITIN or SSN).

11 Tax Residency Individuals in the U.S. can be categorized as either a non-resident or resident depending on how long you have been in the U.S. Students on F or J visas get 5 calendar years where they will be non-residents (for example, ). Students in their 6 th year will become tax residents if they are in the U.S. more than 183 days that year. This calculation includes previous visits on F, M, J, or Q visas.

12 Taxes for Nonresident Aliens for Tax Purposes If you do not have a tax treaty available, you will have 14% federal tax and 5% Illinois tax withheld for scholarships/fellowships stipends. Employees receiving assistantship or temporary payments will have regular federal and 5% Illinois tax for those payments. Please see IRS publication 519 for details on taxation for non-residents

13 Taxes for US Tax Residents Scholarship/fellowship stipend payments to US residents will not have taxes withheld, but are considered taxable payments. If only receiving payments from scholarship or fellowship, complete W-4 and IL W-4 and fill in additional withholding amounts (for example $100 or $25 for state). You must remember to remove it if your funding changes to assistantship or you will be double taxed. Late registration will result in Social Security and Medicare taxes withheld and must submit a request for refund.

14 Extending Status You must update FNIS and submit new tax forms each time your program dates are extended or your immigration status changes. The Payroll Office will update your work eligibility on Form I-9 once you submit your paperwork to our office. You must complete this process no later than your current expiration date on your immigration document (I-20 or DS-2019). Failure to do this will result in delay in pay!

15 Individual Taxpayer Identification Number (ITIN) If you will only initially be paid from a scholarship/ fellowship stipend and you are eligible for a tax treaty, you must apply for an ITIN on Form W-7, which Payroll will supply and submit as part of the FNIS process. You must provide a copy of your offer/award letter from your department for your ITIN application. Individuals without treaty benefits will need to apply for an ITIN when they file their tax return. Payroll will send details about those requirements.

16 Social Security Number (SSN) If you have assistantship or temporary wages, you must apply for a Social Security Card. Fall admits must wait until mid-october and apply once your SEVIS record will be activated. You must complete the Social Security application, get a letter from your department that outlines your employment, a letter from the International Office (requested on-line), and your passport and immigration documents. Cards usually take 2 weeks to arrive and Payroll must receive a copy of your Social Security card or proof or application by the end of October or there will be a delay in pay. Please visit the payroll website for information on this process.

17 Tax Forms for Annual Tax Return Letters are sent out to U.S. residents who received a scholarship or fellowship each January to remind you of taxability. W-2s are sent out for all assistantships (unless tax treaty) and temporary hourly jobs by January 31 st S are sent out for all nonresident scholarship/ fellowship stipend payments and any wages exempt under a tax treaty by March 15 th. You will use these forms to file your U.S. tax return. For 2011 wages, you will file in 2012.

18 Annual Tax Return Non-Residents will fill out form 1040NR-EZ or Form 1040NR for federal tax and Form IL-1040 for Illinois taxes. Taxes must be filed by April 15 th if you receive a W- 2 and June 15 th if you only receive a 1042-S. Please sign up for the International Office listserv for announcements of tax seminars, which are held each spring. These seminars will walk you through the basic tax requirements and give resources for questions.

19 Annual Tax Return If you are funded on a scholarship/fellowship stipend, keep copies of your receipts for books and supplies. You should also keep a copy of your syllabus. If you do not have receipts, use your syllabus and make notes as to the cost of books so that you have some documentation if you are audited. When you file your tax returns, keep a signed copy. If you file electronically, print a copy and save it.

20 Self-service website Use to access paycheck. Enter or change direct deposit information. Change your address in the payroll system (must be done each time you move to avoid tax forms and other important documents being sent to wrong address). Updates to direct deposit and address MUST be done in this system and in CAESAR!

Non U.S. Resident Taxes (NRA) University of Washington Student Fiscal Services

Non U.S. Resident Taxes (NRA) University of Washington Student Fiscal Services 1 Agenda U. S. Source of Income Scholarships Fellowships Tuition Waivers Prizes Stipends Social Security Number Tax Related