Non Resident Alien State of Connecticut Non Resident

Non Resident Alien State of Connecticut Non Resident Alien Info Session Updated: September 2015

Non Resident Alien Session Overview Discuss how to transition Non Resident Alien employees who have been converted into People. Soft as employees who are taxed as normal employees, into Non Resident Alien employees whose tax rate is dependent on the type of earnings reported and their respective country’s Tax Treaty with the U. S. Develop an action plan to successfully implement Non Resident Alien setup across the State of Connecticut.

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Introduction • Learn how to setup a Non Resident Alien’s Visa / Identification data. • Learn how to setup a Non Resident Alien’s Tax information. • Learn how to setup a Non Resident Alien’s Time and Labor information. • Learn how to report a Non Resident Alien’s time. • Discuss transition timeline • Document unresolved questions / follow-up items.

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Identification Data

Non Resident Alien Visa / Permit Data

Non Resident Alien Presence Test

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Time and Labor Setup Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date.

Non Resident Alien Time and Labor Setup Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Choose Workgroup • Use prompt to look up values beginning with ‘NON’

Non Resident Alien Time and Labor Setup Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Choose Workgroup • Use prompt to look up values beginning with ‘NON’

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date.

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Change Special Tax Withholding Status • Non-Resident Alien; Tax Treaty/NR Data

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Change Special Tax Withholding Status • Non-Resident Alien; Tax Treaty/NR Data Step 3: Enter Withholding Allowances • Generally only ONE allowance can be claimed.

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Change Special Tax Withholding Status • Non-Resident Alien; Tax Treaty/NR Data Step 3: Enter Withholding Allowances • Generally only ONE allowance can be claimed. Step 4: Enter FWT Withholding Amount • See Appendix 1

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Change Special Tax Withholding Status • Non-Resident Alien; Tax Treaty/NR Data Step 3: Enter Withholding Allowances • Generally only ONE allowance can be claimed. Step 4: Enter FWT Withholding Amount • See Appendix 1 Step 5: Enter Tax Treaty / NR Data

Non Resident Alien Employee Tax Data Step 1: Insert New Effective Dated Row • Preserves history • Prorates taxes according to the amount of time reported prior to the new effective date and the amount of time after the new effective date. Step 2: Change Special Tax Withholding Status • Non-Resident Alien; Tax Treaty/NR Data Step 3: Enter Withholding Allowances • Generally only ONE allowance can be claimed. Step 4: Enter FWT Withholding Amount • See Appendix 1 Step 5: Enter Tax Treaty / NR Data • This information will setup the employee to be eligible for the Tax Treaty benefits.

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Tax Rules for Royalties Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? Tax Results 12 – Royalties T 01 – Regular Pay T 02 – Straight Overtime T 03 – Longevity T 04 – Sick SS Exc T 05 – Vacation Lump T 06 – Personal Leave T 07 – Double Overtime T 08 – 1 ½ Overtime T 09 – Non Reportable Reimbursement T 10 – Lump Holiday N/A No *Tax Treaty Benefits 12 – Royalties Same as above N/A Yes *Tax Treaty Benefits 12 – Royalties Same as above Yes N/A Taxed as resident 12 – Royalties Same as above No N/A Taxed as resident * Tax Rate may vary based on the country and changing rates of the Tax Treaty.

Non Resident Alien Tax Rules for Grant / Scholarship Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? Tax Results 15 – Grant / Scholarship U 01 – Regular Pay U 02 – Straight Overtime U 03 – Longevity U 04 – Sick SS Exc U 05 – Vacation Lump U 06 – Personal Leave U 07 – Double Overtime U 08 – 1 ½ Overtime U 09 – Non Reportable Reimbursement U 10 – Lump Holiday U 11 – Holiday U 12 – Retro Payment U 13 – Sick Pay U 14 – Vacation Pay N/A No *Tax Treaty Benefits 15 – Grant / Scholarship Same as above N/A Yes *Tax Treaty Benefits 15 – Grant / Scholarship Same as above Yes N/A Taxed as resident 15 – Grant / Scholarship Same as above No N/A Taxed as resident * Taxes may be withheld after a certain threshold depending on the Tax Treaty for which the employee is claiming benefits. Tax rates subject to change.

Non Resident Alien Tax Rules for Ind Pers Services Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? Tax Results 16 – Independent Personal Services V 01 – Regular Pay V 02 – Straight Overtime V 03 – Longevity V 04 – Sick SS Exc V 05 – Vacation Lump V 06 – Personal Leave V 07 – Double Overtime V 08 – 1 ½ Overtime V 09 – Non Reportable Reimbursement V 10 – Lump Holiday V 11 – Holiday V 12 – Retro Payment V 13 – Sick Pay V 14 – Vacation Pay V 15 – Grant N/A No Taxed as resident 16 – Personal Services Same as above N/A Yes Taxed as resident 16 – Personal Services Same as above Yes N/A *Tax Treaty Benefits 16 –Personal Services Same as above No N/A *Tax Treaty Benefits * Taxes may be withheld after a certain threshold depending on the Tax Treaty for which the employee is claiming benefits. Tax rates subject to change.

Non Resident Alien Tax Rules for Dep Pers Services Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? Tax Results 17 – Dependent Personal Services W 01 – Regular Pay W 02 – Straight Overtime W 03 – Longevity W 04 – Sick SS Exc W 05 – Vacation Lump W 06 – Personal Leave W 07 – Double Overtime W 08 – 1 ½ Overtime W 09 – Non Reportable Reimbursement W 10 – Lump Holiday W 11 – Holiday W 12 – Retro Payment W 13 – Sick Pay W 14 – Vacation Pay N/A No Taxed as resident 17 – Personal Services Same as above N/A Yes Taxed as resident 17 – Personal Services Same as above Yes N/A *Tax Treaty Benefits 17 –Personal Services Same as above No N/A *Tax Treaty Benefits * Taxes may be withheld after a certain threshold depending on the Tax Treaty for which the employee is claiming benefits. Tax rates subject to change.

Non Resident Alien Tax Rules for Teaching Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? 18 – Teaching X 01 – Regular Pay X 02 – Straight Overtime X 03 – Longevity X 04 – Sick SS Exc X 05 – Vacation Lump X 06 – Personal Leave X 07 – Double Overtime X 08 – 1 ½ Overtime X 09 – Non Reportable Reimbursement X 10 – Lump Holiday X 11 – Holiday X 12 – Retro Payment X 13 – Sick Pay X 14 – Vacation Pay X 15 – Grant N/A No Taxed as resident 18 – Teaching Same as above N/A Yes Taxed as resident 18 – Teaching Same as above Yes N/A *Tax Treaty Benefits 18 – Teaching Same as above No N/A Taxed as resident * Taxes may be withheld after a certain threshold depending on the Tax Treaty for which the employee is claiming benefits. Tax Results

Non Resident Alien Tax Rules for Studying / Training Income Code Earn Code in People. Soft 8233 Form Received? W 8 Ben Form Received? Tax Results 19 – Studying and Training Y 01 – Regular Pay Y 02 – Straight Overtime Y 03 – Longevity Y 04 – Sick SS Exc Y 05 – Vacation Lump Y 06 – Personal Leave Y 07 – Double Overtime Y 08 – 1 ½ Overtime Y 09 – Non Reportable Reimbursement Y 10 – Lump Holiday Y 11 – Holiday Y 12 – Retro Payment Y 13 – Sick Pay Y 14 – Vacation Pay N/A No Taxed as resident 19 – Studying and Training Same as above N/A Yes Taxed as resident 19 – Studying and Training Same as above Yes N/A *Tax Treaty Benefits 19 – Studying and Training Same as above No N/A Taxed as resident * Taxes may be withheld after a certain threshold depending on the Tax Treaty for which the employee is claiming benefits.

Non Resident Alien Agenda Introduction Employee Visa / Permit Setup Employee Time and Labor Setup Employee Tax Setup Paying Employee Appendix

Non Resident Alien Appendix 1 According to the Instructions for Form 8233 (Rev. December 2001), the following Additional Federal Withholding Amounts should be applied to all Non Resident Aliens: Payroll Period Amount * Federal Withholding Amounts subject to change. Biweekly $15. 30 Semi-Monthly $16. 60 Monthly $33. 10

Non Resident Alien Appendix 2 TRC ERNCD DESCR REG 12 T 01 Regular Pay NRA Inc Code 12 REG 15 U 01 Regular Pay NRA Inc Code 15 OTS 12 T 02 OT Straight NRA Inc Code 12 OTS 15 U 02 OT Straight NRA Inc Code 15 XLG 12 T 03 Longevity NRA Inc Code 12 XLG 15 U 03 Longevity NRA Inc Code 15 SIC 12 T 04 Sick SS Exc NRA Inc Code 12 SIC 15 U 04 Sick SS Exc NRA Inc Code 15 VAC 12 T 05 Vac Lump Pay NRA Inc Code 12 VAC 15 U 05 Vac Lump Pay NRA Inc Code 15 PL 12 T 06 Personal Leave NRA Inc Code 12 PL 15 U 06 Personal Leave NRA Inc Code 15 OTD 12 T 07 OT Dbl NRA Inc Code 12 OTD 15 U 07 OT Dbl NRA Inc Code 15 OT 112 T 08 OT 1 1/2 NRA Inc Code 12 OT 115 U 08 OT 1 1/2 NRA Inc Code 15 NRR 12 T 09 Non Rept Reim NRA Inc Code 12 NRR 15 U 09 Non Rept Reim NRA Inc Code 15 HOL 12 T 10 Lump Holiday NRA Inc Code 12 HOL 15 U 10 Lump Holiday NRA Inc Code 15 * Time Reporting Codes (TRCs) subject to change

Non Resident Alien Appendix 2 cont. TRC ERNCD DESCR REG 16 V 01 Regular Pay NRA Inc Code 16 REG 17 W 01 Regular Pay NRA Inc Code 17 OTS 16 V 02 OT Straight NRA Inc Code 16 OTS 17 W 02 OT Straight NRA Inc Code 17 XLG 16 V 03 Longevity NRA Inc Code 16 XLG 17 W 03 Longevity NRA Inc Code 17 SIC 16 V 04 Sick SS Exc NRA Inc Code 16 SIC 17 W 04 Sick SS Exc NRA Inc Code 17 VAC 16 V 05 Vac Lump Pay NRA Inc Code 16 VAC 17 W 05 Vac Lump Pay NRA Inc Code 17 PL 16 V 06 Personal Leave NRA Inc Code 16 PL 17 W 06 Personal Leave NRA Inc Code 17 OTD 16 V 07 OT Dbl NRA Inc Code 16 OTD 17 W 07 OT Dbl NRA Inc Code 17 OT 116 V 08 OT 1 1/2 NRA Inc Code 16 OT 117 W 08 OT 1 1/2 NRA Inc Code 17 NRR 16 V 09 Non Rept Reim NRA Inc Code 16 NRR 17 W 09 Non Rept Reim NRA Inc Code 17 HOL 16 V 10 Lump Holiday NRA Inc Code 16 HOL 17 W 10 Lump Holiday NRA Inc Code 17 * Time Reporting Codes (TRCs) subject to change

Non Resident Alien Appendix 2 cont. TRC ERNCD DESCR REG 18 X 01 Regular Pay NRA Inc Code 18 REG 19 Y 01 Regular Pay NRA Inc Code 19 OTS 18 X 02 OT Straight NRA Inc Code 18 OTS 19 Y 02 OT Straight NRA Inc Code 19 XLG 18 X 03 Longevity NRA Inc Code 18 XLG 19 Y 03 Longevity NRA Inc Code 19 SIC 18 X 04 Sick SS Exc NRA Inc Code 18 SIC 19 Y 04 Sick SS Exc NRA Inc Code 19 VAC 18 X 05 Vac Lump Pay NRA Inc Code 18 VAC 19 Y 05 Vac Lump Pay NRA Inc Code 19 PL 18 X 06 Personal Leave NRA Inc Code 18 PL 19 Y 06 Personal Leave NRA Inc Code 19 OTD 18 X 07 OT Dbl NRA Inc Code 18 OTD 19 Y 07 OT Dbl NRA Inc Code 19 OT 118 X 08 OT 1 1/2 NRA Inc Code 18 OT 119 Y 08 OT 1 1/2 NRA Inc Code 19 NRR 18 X 09 Non Rept Reim NRA Inc Code 18 NRR 19 Y 09 Non Rept Reim NRA Inc Code 19 HOL 18 X 10 Lump Holiday NRA Inc Code 18 HOL 19 Y 10 Lump Holiday NRA Inc Code 19 * Time Reporting Codes (TRCs) subject to change

Non Resident Alien Appendix 2 cont. TRC ERNCD DESCR REG 50 Z 01 Regular Pay NRA Inc Code 50 OTS 50 Z 02 OT Straight NRA Inc Code 50 XLG 50 Z 03 Longevity NRA Inc Code 50 SIC 50 Z 04 Sick SS Exc NRA Inc Code 50 VAC 50 Z 05 Vac Lump Pay NRA Inc Code 50 PL 50 Z 06 Personal Leave NRA Inc Code 50 OTD 50 Z 07 OT Dbl NRA Inc Code 50 OT 150 Z 08 OT 1 1/2 NRA Inc Code 50 NRR 50 Z 09 Non Rept Reim NRA Inc Code 50 HOL 50 Z 10 Lump Holiday NRA Inc Code 50 * Time Reporting Codes (TRCs) subject to change