|
| INFORMATIONAL CIRCULAR NO. 99-P-022 |
|
| DATE: |
January 29, 1999 |
| SUBJECT: |
Non-Resident Alien Earnings |
| EFFECTIVE DATE: |
Immediately |
| A & R CONTACT: |
Nancy Ruoff |
(785) 296-5369 |
|
| APPROVAL: |
 |
| SUMMARY: |
Clarification on Payroll Issues for Regents' Payroll System Agencies Reporting Earnings
for Non-Resident Alien Employees |
|
Effective with the implementation of SHARP v7.0 in October, 1998,
Non-Resident Alien employees and 1042 earnings balances are maintained utilizing as 'vanilla' an
approach to PeopleSoft as possible. Following is a clarification of certain issues that have been
addressed since the implementation of SHARP v7.0.
- Earnings for Non-Resident Alien employees should be submitted by Regents institutions using earnings
codes NR4, NR5, NF4, or NF5. SHARP evaluates the employee's current 1042
balance, tax treaty limit, and current NR or NF earnings to determine the amount of earnings to be
updated to 1042 balances and/or W2 balances. Once an employee has reached the 1042 tax treaty maximum
eligible earnings limit for the year, the system will automatically begin updating W2 balances.
- PeopleSoft v7.0 does not evaluate maximum presence limits for Non-Resident Alien
employees. Regents institutions are responsible for determining when a Non-Resident Alien employee
meets the maximum presence limit. Once an employee meets the maximum presence limit, the employee
is no longer eligible for NR4, NR5, NF4, or NF5 earnings and all future earnings should be reported
using REG (or another valid earnings codes). An employee's Special_FWT_Status must remain as an 'A'
(Non-Resident Alien) on the maximum effective dated Fed Tax Data row for any year in which they have
1042 earnings. After an employee meets the maximum presence limit, the employee's Special_FWT_Status
should be set to 'N' (None) for subsequent years.
- It continues to be the responsibility of the Regents institutions to correctly
determine the applicability of a tax treaty for any income in question and
to inform the Department of Administration of any changes to the tax treaty
table. Many countries have multiple treaty IDs on the tax treaty table to
identify various income code/income limit/payer of income combinations. It
is the responsibility of the Regents institutions to gather all of the necessary
information to make the correct determination of tax exemption and treaty
ID. Regents institutions should review the treaty IDs assigned to employees
on a regular basis to insure the correct treaty ID is in use.
- Non-Resident Alien employee information for country, income code, and year-to-date 1042 taxable
gross is provided on the Regent's Outbound Management Reporting File (start position 5951). Regents
institutions should review year-to-date 1042 taxable gross balances on a regular basis throughout
the year and forward any questions regarding differences to Sunni Zentner in the Payroll Services
Section at (785) 296-7058.
SAM:JJM:NR
|
