Peoplesoft NonResident Alien Configuration PSRECONNECT Definitions Non Resident

Peoplesoft – Non-Resident Alien Configuration #PSRECONNECT

Definitions

Non Resident Alien IRS Definitions • An alien is any individual who is not a U. S. citizen or U. S. national • A resident alien is an alien who has passed the green card test or the substantial presence test • A nonresident alien is an individual who is not a U. S. citizen or a resident alien • A resident of a foreign country under the residence article of an income tax treaty is a nonresident alien individual for purposes of withholding. #PSRECONNECT

Non Resident Alien IRS Definitions • Substantial Presence Test • Treated as an U. S. resident for tax purposes if physically present: • 31 days during the current year, and • 183 days during the 3 -year period that includes the current year and the 2 years immediately before that, counting: • All the days you were present in the current year, and • 1/3 of the days you were present in the first year before the current year, and • 1/6 of the days you were present in the second year before the current year • In most cases, the days the alien is in the United States as a teacher, student, or trainee on an “F, ”“J, ”“M, ” or “Q” visa are not counted #PSRECONNECT

Non Resident Alien PS Presence Test (supported by HR) #PSRECONNECT

Non Resident Alien Taxation Overview of Withholding • IRS Pub 515 Withholding of Tax on Nonresident Aliens and Foreign Entities (2013) • PS supports • W 2 special withholding rules • All US customers • Federal withholding only • 1042 withholding • E&G customers only • Tax treaty rates and limits for specific income • Scholarship, Teaching, Training, etc. • Federal and State withholding • 1042 year-end reporting #PSRECONNECT

Example 1: Korean National Nonresident Alien for Tax Purposes

Employee Configuration Citizenship/Visa Data • Substantial Presence Test • Citizenship • Visa • Resident Alien for Tax Purposes (on Umass Miscellaneous Employee) Tax-Specific Data • Employee Federal Tax Data • Tax Treaty/Non. Resident Data • FICA Status (on Job) • Time Reporter Data • Additional Pay, Paysheet entry of Earnings Codes #PSRECONNECT

Citizenship #PSRECONNECT

Visa/Permit Data #PSRECONNECT

UMass Misc Employee #PSRECONNECT

Glacier Tax Summary Report #PSRECONNECT

Employee Federal Tax Data #PSRECONNECT

EE Tax Data - Tax Treaty/Non-Resident Data #PSRECONNECT

Form W-9 Fields – A Note #PSRECONNECT

E&G Fields #PSRECONNECT

NR Alien Tax Treaty Table #PSRECONNECT

FICA Status #PSRECONNECT

Time and Labor/Payroll Overview • Each employee/rcd is associated with a Workgroup • The Workgroup allows the employee to enter certain TRCs • Each Time Reporting Code is associated with an Earnings Code • Each Earnings Code corresponds to an IRS Income Code • Employees on treaty will have • 1042 earnings up to the treaty limit • W-2 earnings after reaching the treaty limit #PSRECONNECT

Time Reporter Data #PSRECONNECT

Workgroup #PSRECONNECT

TRC Program #PSRECONNECT

Time Reporting Codes – TRCs #PSRECONNECT

Earnings Table #PSRECONNECT

Timesheet #PSRECONNECT

Paycheck Earnings #PSRECONNECT

1042 Tax Balances #PSRECONNECT

Paycheck - Tax/Tax 1042 #PSRECONNECT

Example 2: Reaching a Treaty Limit

NRA Withholding Rule #PSRECONNECT

Crossover Paycheck #PSRECONNECT

Subsequent Paychecks #PSRECONNECT

Example 3 – Resident Alien with Scholarship

Resident Alien for Tax Purposes #PSRECONNECT

Federal Tax Data #PSRECONNECT

Tax Treaty/Non-Resident Data #PSRECONNECT

Paycheck with Scholarship #PSRECONNECT

Paycheck with Scholarship – 1042 taxes #PSRECONNECT

Non-Scholarship Earnings #PSRECONNECT

Reporting with 1042

Querying 1042 Data #PSRECONNECT

INC_CD_1042_TBL #PSRECONNECT

Fields to Select #PSRECONNECT

Please complete a session evaluation Session ID: 123456 Contact Info: Nicole Apostola napostola@umassp. edu Tel: 555. 1234

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