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Tonight• Section 14 Review• Quiz• Break• Go over Quiz• Group Question on W2’s!

Payroll for U.S. Employees Working Abroad and Aliens

in the United States

Section 14

Overview

• Type of Employees • Taxation Issues• Exclusions• Visas

Types of Employees• Expatriate

• Non Resident Alien

• Resident Alien

Taxation Issues• What is subject to Federal Income Tax

Withholding (FITW)?• What is subject to Social Security and

Medicare?• Who is covered by FUTA?• Tax equalization plans• Tax protection plans• ITINs

What are these?• Foreign Country• Full Day• Totalization Agreements• Temporary Assignment• Foreign Affiliate• Foreign Earned Income• US Income Tax Treaties

Where does the Employee live?• Tax Home • Domicile• Bona Fide Residence Test• Physical Presence Test

Exclusions• Foreign Earned Income Exclusion

• Foreign Housing Cost Exclusion

Forms to Know• Form 673 • Form 2032• Form 2555• Form 1116• I – 9

• Form 6166• Form 8802• W – 4• W – 9• W – 7

Types of Visas• B – 1• D – 1• E – 1• E – 2• F – 1• H – 1B & H – 1C• J - 1

• L – 1A & L – 1B• M – 1• O – 1 & O – 2• P – 1• Q• R – 1• TN, NAFTA

Questions ?

Next Week

100 Question Post TestFinal Wrap Up