Foreign National Employees
Payments and Taxation
NC A&T State University cooperates with the Department of Homeland Security, the Internal Revenue Service, and the North Carolina Department of Revenue to ensure proper reporting and taxation for all non-citizen employees. Special tax rules apply that require our University Payroll Office to conduct a tax withholding assessment to determine the correct tax rates based on the employee's visa type, primary purpose of stay, and country of residence.A Social Security Number (SSN) is required for all employees in the U.S. However, most non-resident employees arrive without an SSN. Non-resident employees must present their social security card in person to the Division of Human Resources for entry into the Ellucian Banner system.
NC A&T utilizes Sprintax Calculus to perform tax assessments, including the Substantial Presence Test and Green Card Test, to determine the appropriate taxation for income paid to nonresident students, postdoctoral researchers, non-faculty employees, and vendors receiving payments from the University.
All foreign national employees at NC A&T must complete a tax assessment via Sprintax when they begin employment to determine the correct tax treatment for their payments.
A non-resident alien is an individual allowed to enter the U.S. on a temporary basis for the purpose and duration indicated by their immigration documents.
If you are an alien (not a U.S. citizen), you are considered a non-resident alien unless you meet one of the following two tests: the Green Card Test or the Substantial Presence Test as a resident alien for the calendar year (January 1 – December 31). If you do not meet either of these tests, you are considered a non-resident alien for tax purposes.
Non-resident aliens are required to update their Sprintax annually and whenever they travel outside the United States. Failure to update your Sprintax form assessment and provide the necessary documentation will result in the loss of treaty benefits and may subject you to higher non-resident alien tax rates.
All foreign national employees at NC A&T must complete a tax assessment via Sprintax when they begin employment to determine the correct tax treatment for their payments.
A non-resident alien is an individual allowed to enter the U.S. on a temporary basis for the purpose and duration indicated by their immigration documents.
If you are an alien (not a U.S. citizen), you are considered a non-resident alien unless you meet one of the following two tests: the Green Card Test or the Substantial Presence Test as a resident alien for the calendar year (January 1 – December 31). If you do not meet either of these tests, you are considered a non-resident alien for tax purposes.
Non-resident aliens are required to update their Sprintax annually and whenever they travel outside the United States. Failure to update your Sprintax form assessment and provide the necessary documentation will result in the loss of treaty benefits and may subject you to higher non-resident alien tax rates.
Withholding allowances on the Federal Form W-4 are limited to "Single" marital status for non-resident aliens. Residents of Canada, Mexico, and Korea must claim "Single" marital status, but they can account for any dependents who are accompanying them to the U.S.
Non-resident alien employees should complete the online tax assessment in the Sprintax Calculus System to determine the appropriate withholding. For further guidance, refer to IRS Notice 1392.
Non-resident alien employees should complete the online tax assessment in the Sprintax Calculus System to determine the appropriate withholding. For further guidance, refer to IRS Notice 1392.
Non-resident aliens on F-1 and J-1 visas are exempt from paying FICA (Social Security and Medicare) taxes until they become residents for tax purposes. F-1 and J-1 students generally maintain non-resident status for their first five calendar years in the U.S. Even after becoming residents for tax purposes, students typically remain exempt from FICA taxes under the student FICA exemption.
J-1 researchers generally maintain non-resident status for their first two calendar years in the U.S. Beginning on January 1 of the third calendar year of presence, they will start paying FICA taxes.
All other non-resident aliens, including those on H-1B, J-2, and TN visas, are subject to FICA taxes from their first day of employment.
Non-resident alien employees should complete the online questionnaire in the Foreign National Information System to determine their appropriate FICA status.
J-1 researchers generally maintain non-resident status for their first two calendar years in the U.S. Beginning on January 1 of the third calendar year of presence, they will start paying FICA taxes.
All other non-resident aliens, including those on H-1B, J-2, and TN visas, are subject to FICA taxes from their first day of employment.
Non-resident alien employees should complete the online questionnaire in the Foreign National Information System to determine their appropriate FICA status.
Residents of certain countries may be eligible to claim a tax treaty to exempt all or part of their wages from U.S. federal income tax withholding. The State of North Carolina also honors federal tax treaties.
For F-1 and J-1 students, tax treaties generally exempt a limited amount of wages (ranging from $2,000 to $8,000) from federal income tax. J-1 researchers may be eligible to exempt all wages from federal income tax under the treaty.
A Social Security Number (SSN) is required to claim the tax treaty benefit.
Non-resident alien employees should complete the online tax assessment in Sprintax Calculus to determine their eligibility to claim a tax treaty.
Note: Students may also qualify for tax treaty benefits for scholarship income, even if there is no treaty for employment income. These benefits are managed by the General Accounting under the Comptroller’s Office in the Division of Business and Finance.
For F-1 and J-1 students, tax treaties generally exempt a limited amount of wages (ranging from $2,000 to $8,000) from federal income tax. J-1 researchers may be eligible to exempt all wages from federal income tax under the treaty.
A Social Security Number (SSN) is required to claim the tax treaty benefit.
Non-resident alien employees should complete the online tax assessment in Sprintax Calculus to determine their eligibility to claim a tax treaty.
Note: Students may also qualify for tax treaty benefits for scholarship income, even if there is no treaty for employment income. These benefits are managed by the General Accounting under the Comptroller’s Office in the Division of Business and Finance.
Year End Tax Forms
Wages for non-resident alien employees are reported on a W-2 statement. Non-resident aliens who have claimed a tax treaty will also receive a 1042-S form, which may be issued in addition to the W-2 statement.All employees earning taxable income from employment in the United States will receive a Form W-2, which provides a summary of earnings by January 31st of each year. This form will be accessible for current employees via online access to the Aggie Access Employee Dashboard system and a paper W-2 mailed to separated employees to your U.S. residential address. The W-2 is crucial for filing a tax return for individuals with taxable employment income.
If a nonresident alien worked for another U.S. employer during the tax year, it's important to ensure that the employer has an up-to-date address so that the W-2 from that employer is received.
If a nonresident alien worked for another U.S. employer during the tax year, it's important to ensure that the employer has an up-to-date address so that the W-2 from that employer is received.
Nonresident aliens with tax treaty-exempt wages will receive a Form 1042-S from NC A&T. This form also reports prizes and awards. (Individuals who only have a fee waiver or a scholarship that is less than their semester fee charges will not receive a 1042-S.) The 1042-S will be provided by March 15th, and individuals with income of this nature should wait to file their tax return until they have received this form.
For more detailed information, please refer to the W-2 Statement.
For more detailed information, please refer to the W-2 Statement.
Individuals earning income in the United States, including international students and researchers, are required to file income tax returns to determine the total tax owed for the year. The outcome of the tax return may result in a refund of taxes withheld or an additional tax payment. Nonresidents typically use Form 1040NR or Form 1040NR-EZ to file their tax return with the IRS.
Non-resident Aliens Working Outside the U.S.
NC A&T State University does not support working relations for employees to work outside the U.S. There are a lot of complexities with the tax reporting and withholding rules. You must cease employment when exiting the U.S. and consult with your department and the Office of International Affairs or Division of Human Resources, dependent upon your visa status with the University to notify your intent to travel and the period of time you expect to be aboard.
