Learn how to manage payroll taxes for employees that hold F-1 and J-1 VISA.
Payroll Taxes for Non-Resident Aliens is different than taxes for US Citizens. Many countries have tax treaties with the United States which allow Non-Resident aliens an exemption from all or part of Federal tax withholdings.
Different types of VISA Holders get certain exemptions from Federal Tax and FICA/Medicare tax.
An F-1 VISA is specifically for Full-time Students who come to the US to study at an accredited college or university.
These students can also apply for Optional Practical Training (OPT) in their major field of study which allows them to remain in the US for an extended period of time after they have completed their studies. A J-1 VISA is similar to an F-1 VISA but is for Teachers and Researchers in a specific field of study for a specific amount of time.
The F-1 & J-1 VISA holders are both exempt from FICA/Medicare tax if they become employed for personal services while in the US. They may also be exempt from Federal Tax withholding if their country has a Tax Treaty with the US. Some treaties exempt all wages from tax and others have specific dollar limits that can be earned before they are subject to taxes.
This webinar will go over what Employers need to know about managing payroll taxes for these employees. What forms they need to complete to receive a tax treaty exemption and the specific forms that must be filed at Year-End. Also what to do if there is not a tax treaty in their country.
Learning Objectives
- You will be able to discuss these 2 types of VISA’s.
- You will be able to explain what taxes they are exempt from and what to withhold.
- You will be able to identify what forms should be completed by the employee and employer.
- You will be able to recognize how to treat these employees for payroll tax purposes.
Agenda
Understanding the VISA and OPT
- F-1 VISA
- Opt-Optional Practical Training
- J-1 VISA
- I-94
Federal Tax Treatment
- FICA/Medicare and FUTA Exemption
- Tax Treaty
- Form 8233
- W-4
- Calculating Non-Resident Tax
Year-End Reporting
- Form 1042-S
- Form 1042 and 1042-T
- Form 941
Helpful Publications and Websites
- Publication 15
- Publication 15-T
- Publication 515
- Publication 519
- Publication 901
Speakers
Debbie Cash, CPP,
Employer Advantage- Payroll tax/time and attendance specialist at Employer Advantage LLC since 2006
- About Employer Advantage: FREEDOM TO SUCCEED - Trusted more than 25 years, Employer Advantage frees business leaders from employee administrative and compliance burdens so they can focus on their business’s success. More than a software solution, we identify a company’s individual needs and culture to create strategic and very personalized plans for service. Our dedicated teams not only provide business leaders comprehensive management and resources, but give their employees top-notch assistance and benefits. Our suite of services includes: Payroll, employment taxes, health and benefits, human resources, safety, workers’ compensation, OSHA, DOT, and more
- 30+ years of experience processing payroll and payroll taxes for various different companies and professions
- Builds databases and installs systems at locations across the U.S. working with Time America products since 2006 and Time Clock Plus since 2010
- Began a partnership In June 2018 with Kronos and has been working with their time and labor management systems
- Payroll specialist at Missouri Southern State University from 1993-2006; attended the International Tax Conference in Wisconsin in 2005 and specialized in International Tax for Student Visa’s; Joplin R-8 School District from 1990-1993
- Chapter president of the Joplin Chapter of the American Payroll Association, 2006-2012, chaired the committee for their annual seminar since 2006
- Numerous awards from the APA for her volunteer service on the APA’s hotline and also for her service as Chapter President
- Published several articles in PayTech, a monthly magazine put out by the APA, currently the treasurer for the chapter
- B.A. degree in general business, MSSU, 2006; Associates degree in accounting, MSSU, 1985; Certified Payroll Professional Certification in October 2006
- Can be contacted at 417-782-3909 ext 148, Debbie@employeradvantage.com, or the firm's website
Who Should Attend
This live webinar is designed for human resource managers, payroll managers, benefit administrators, accountants, CFOs, controllers, business and office managers, presidents, vice presidents, bookkeepers, and owners.
