student payroll employment forms

Student Payroll Employment Forms

Contact Information

Tax Services Website:

http://www.financialreporting.mnscu.edu/Tax_Services/index.html Ann Page, 651-632-5007

[email protected] Steve Gednalske, 651-632-5016,

[email protected]

Employment Forms

Form I-9, Employment Eligibility Verification

Form W-4, Employee’s

Withholding Allowance Certificate

Tax Form Management

General form information Form maintenance &

documentation Form storage suggestions Record retention

requirements

Form I-9

Employment Eligibility Verification Form


Department of Homeland Security USCIS: United States Citizenship &

Immigration Services Law: The Immigration & Control Act U.S. Employers & Employees Last updated: 1991

Employee’s responsibility Complete Section I; Prior to the close

of business on the first day of employment services

Employer’s responsibility Review employment authorization

documentation prior to the close of business on 3rd day of employment services


I-9: Section 1

Section 2: Form I-9, Employment Eligibility Verification

Review Documentation 1. Authorization to work in U.S.

2. Establish identity Must match

Record Document Information Recommended: Copy Documents

I-9: Section 2: Verification

F-1/J-1 Students

=3 Documents

I-9 Documentation

List of acceptable documents List A: Employment

Eligibility & ID Timely verification

Must be verified within 3 days of start date

Reasonableness If appears genuine,

accept document

F-1 Documentation SEVIS Form I-20, I-94,

Arrival/Departure Passport

Personal Info Include visa stamp

Documents that Establish Both Identity & Employment Eligibility

And Form I-766, Employment Authorization Document

LIST B: Establishing Identity

LIST C: Establishing Employability

The combination of documents from List B and List C

verifies the I-9

I-9: Section 3, Verification

Re-Verification

When work authorization documents reach expiration date

I-9 Record Retention

I-9’s must be on hand for: All current employees Three years after employee’s

hire date or 1 year after employee’s termination date whichever is later

I-9 Record Recommendations

In case of audit, I-9’s must be retrievable in 3 days

Recommend keeping I-9’s in a separate file

DISCUSSION File Maintenance: Campuses

W-4 Withholding Certificate

W-4 New from the IRS

Withholding agents are no longer required to send copies of W-4’s to IRS, unless specifically requested

W-4 General Rules

What to do if no W-4? S-0 If you have an earlier Form W-4 for this employee that is valid,

withhold as you did before. Validity: Any unauthorized change or addition to Form W-4

makes it invalid. This includes taking out any language by which the employee

certifies that the form is correct. A Form W-4 is also invalid if, by the date an employee gives it to

you, he or she indicates in any way that it is false. When you get an invalid Form W-4, do not use it to figure

federal withholding. Tell the employee that it is invalid and ask for another one.

Claiming Exemption

IRS Code section 3402(n): An employee may claim exemption from income tax withholding if he or she:

1) Had no income tax liability last year and2) Expects to have no tax liability this year.

Exemption is good for one year only W-4 must be submitted by February 15th If the employee does not provide a new Form W-4,

the employer must withhold tax as if the employee were single with zero withholding allowances.

Figuring Withholding Allowances: Employee Advice

IRS Withholding Calculator

http://www.irs.gov/individuals/article/0,,id=96196,00.html Most recent pay stubs, most recent tax

return The results of this program helps

employee to complete a new Form W-4

Figuring Withholding Allowances: Employee Advice

IRS Publication 919: How Do I Adjust My Tax Withholding?

http://www.irs.gov/pub/irs-pdf/p919.pdf Detailed instructions and worksheets for

computing tax withholding

W-4 Statutory Withholding

When completing Form W-4, nonresident aliens are required to:

Not claim exemption from income tax withholding,

Request withholding as if they are single, regardless of their actual marital status,

Claim only one allowance, and Request an additional $15.30 in income tax

withholding per bi weekly pay period

Students from India & Statutory Withholding Article 21(2) of the United States-India Income

Tax Treaty Does not have to request the additional withholding

amount on line 6 of Form W-4. An additional withholding allowance may be claimed

for a spouse if the spouse has no U.S. source gross income and may not be claimed as a dependent by another taxpayer.

An additional withholding allowance for each dependent (usually a child) who has become a resident alien.

Other Exceptions to Statutory Withholding

Canada and Mexico, American Samoa and Northern Mariana Islands

“Single” marital status; one withholding allowance plus additional withholding allowances for nonworking spouse and dependents; and additional tax of $15.30.

Japan and Korea “Single” marital status; one withholding allowance

plus additional withholding allowances for nonworking spouse and dependents who are present in the US; and additional tax of $15.30.

W-4 Record Retention

Form W-4 remains in effect until the employee gives you a new one.

If an employee gives you a Form W-4 that replaces an existing Form W-4, begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date when you received the replacement Form W-4.

W-4 Record Retention A Form W-4 claiming exemption from

withholding is valid for only one calendar year Request new W-4 each year from:

Employees claiming exemption NRA’s with 8233’s

W-4’s must be kept on file for 7 years after the last applicable tax year

W-4 Record Retention: Example Ann is hired in 2001 & fills out a 2001

W-4 In 2004, Ann fills out a new W-4 The 2001 W-4 was used to figure Ann’s

withholding for 2001, 2002, 2003 and part of 2004.

The 2001 W-4 must be kept until 2011

Summary: I-9 & W4

I-9 Keep I-9’s for 3 years

after hire date or 1 year after termination, which ever is later.

Reverify I-9 when employment authorization expires

W-4 Current and

terminated employees: Keep all W-4’s for 7 years past applicable year

If missing or invalid W-4: Withhold S-0

Current Employees: Keep most recent I-9 & W-4 form on file AND:

Retention: Payroll Forms

7 Years past applicable tax year Timesheets W-4 Forms TRIF 8233 Forms Contracts

QUESTIONS & DISCUSSION

Intermission

LUNCH

Student Payroll:TRIF Update & Other Issues

Student Payroll Tax Residency Information Form

“New” Version Documentation Requirements ISRS Tax Residency Year field Questions

Tax Residency Information Form

Employee’s who indicate on their I-9 that they are “other alien authorized to work until xx/xx/xxxx” must fill out Tax Residency Information Form.

Section E applies SPT


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STUDENT PAYROLL TAX RESIDENCY INFORMATION FORM To be filled out by student employees who indicate on their I-9 “other alien authorized to work until xx/xx/xx”.

Notice: The following information is requested to determine and document your resident or nonresident status for tax purposes, tax withholdings, and any tax treaty benefits you may be eligible to receive. This is NOT an Internal Revenue Service (IRS) nor is it a United States Citizenship and Immigration Services (USCIS) form. You are not legally required to fill out this questionnaire, but if you do not do so, the institution will be unable to determine your eligibility for tax treaty benefits and will withhold federal and state taxes following the nonresident alien statutory withholding rules. This information will be used by the institution’s finance/HR personnel to determine your tax liability and may be available to other government officials as authorized by law.

A: PERSONAL INFORMATION Name ____________________________________________________ Last First or Personal Middle

Social Security # or ITIN

Current Immigration Status/Visa Type

Country of Citizenship

Date of Original Port of Entry under Current Immigration Status/Visa Type

Institution

Department(s)

Change of Immigration Status

If individual has had a change of status since entering the U.S., enter the date that status changed and the original visa type below (Individual must also complete Section C: Prior Visits). Contact Tax Services to determine Tax Residency.

Change of Status Date____________________ Previous Status___________________

Title of position(s) held:

B: TAX RESIDENCY

Go to Section D: Certification

Go to Section D: Certification

Is your current immigration classification that of an F-1or J -1 student?

Have you ever been in the U.S. prior to this visit?

Contact Tax Services – If student’s immigration status is not that of an F-1or J -1 student sponsored by your institution, they may not be eligible for employment at MnSCU.

NO

YES

Were any of your previous visits under a J or Q non-student visa? Include visits as a dependent visa holder as well as primary visa holder visits

YES

YES

Turn this form over and fill in page 2, starting at Section C: Prior Visit Information.

NO

NO

YES Go to page 2, Section C: Prior Visits. After gathering prior visit information, contact Tax Services.

Were any of your previous visits under an F, J , M or Q student visa? Include visits as a dependent visa holder as well as primary visa holder visits

NO

In the past three year period that includes the current year, did you visit the U.S. under any other type of visa?

NO

YES Go to page 2, Section C: Prior Visits. After filling in prior visit information, contact Tax Services.


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C: PRIOR VISIT INFORMATION In chronological order, list every F, J, M or Q student or non student visa visit to the U.S. in your life, include visits under dependent versions of those visas. Also list those visits under other visa types that occurred in the past 3 year period that includes the current year, but do not include your current visit. To be completed by withholding agent

Year Visa

Type/Immigration Status

Total Number of Days in the US during Year under Visa Type

Purpose of Visit

D: CERTIFICATION I hereby certify that all of the above information is true and correct. I understand that if my immigration status changes from that which I have indicated on this form, I must prepare and submit a new Tax Residency Information Form to the Student Payroll office at my institution. Date _____________________ Signature ___________________________________________________________________ To be completed by withholding agent E: TAX RESIDENCY CALCULATION

F: RESIDENCY STARTING DATE : January 1st, __________________________________________(enter the Residency Start Year) Future date, assuming no change in immigration data, when the institution would begin to tax employee as a resident alien. First day of presence in the U.S. during the calendar year in which the individual meets the substantial presence test. G: WITHHOLDING AGENT INFORMATION Date _____________________ Signature ______________________________________________________________________________ Phone Number (______)___________________Name (Print please)______________________________________________________________

Port of Entry Year* = ___________

Plus Exempt years = 5

Less Prior Visit years** = ____________

Equals Residency Start Year*** = ______________

Tax Services Contact Information: Ann Page at 651-632-5007, [email protected], or Steve Gednalske at 651-632-5016, [email protected]. Send a copy of this form to Tax Services, 1450 Energy Park Drive, Suite 300, St. Paul, MN 55108 or Fax to 651-649-5770.

* From Section A, original port of entry date under current visa type. If there is a Change of Status Date, use that date instead. **Number of exempt years from previous visits. If no prior visits, enter 0. Exempt years = any year as a F, J, M or Q visa holder. ***Add exempt years to Port of Entry year & subtract prior visit years to arrive at Residency Start Year.

For Tax Purposes Only


2001 F-1

Ideal

Reality: Estimate or Range of Dates

Aug 01 – May 02 High school exchange student program2002 F-1 Above

Discussion

Nonresident TRIF Questions Comments Concerns

TRIF Documentation

F-1 Students

I-20 & Attachments I-94 Passport

J-1 Students

DS-2016 & Employment Letters

I-94 Passport

I-20

Certificate of Eligibility for Nonimmigrant (F-1) Student

I-94: Arrival/Departure Record

DS-2019

Certificate of Eligibility for Exchange Visitor(J-1) Status

Passport Information

Identification Page Current visa

information Prior visits to US

Tax Residency Form Summary All student employees who indicate on their I-9 that they

are “other aliens authorized to work until xx/xx/xxxx”, must fill out the Tax Residency Form

Students must complete Sections A and D. If they have been in the U.S. prior to their current visit, they must also complete Section C.

Student Payroll copies the student’s immigration documents & completes Sections E, F and G.

Student Payroll enters the Tax Residency Year from Section E into ISRS Student Employee Setup (PR0021UG) Screen

Keep the original form with the employee’s records Send a copy of the completed form and related

immigration documentation to Tax Services

Joke Break

A student on his deathbed called his friend and said, "Bob, I want you to promise me that when I die you will have my remains cremated." Bob agreed to take care of his friend's request and asked "What do you want me to do with your ashes?" The student said, "Just put them in an envelope and mail them to the Internal Revenue Service and write on the envelope:

"Now you have everything."

Student FICA

Rule Changes – eff. 4/1/2005 Full time employees not exempt

Employees who regularly work 40 hours a week = full time, career employees

>30 Hour a week = full time Tracking

Supervisor Hire Form ISRS & Tax Service Reports

ISRS Data Entry & Tax Filing

Name Entry Legal name, Should be the same as on

Social Security Card; New names (ex: married) may not be

used until employee has changed their Social Security records with the Social Security Administration (SSA).

Social Security Numbers (SSN) Look at Social Security Card or call SSA

ISRS Data: Addresses

Alpha entry No odd characters: colons (:), slashes (/), asterix (*) Addresses

Enter address information in appropriate data fields

State must be entered for a US address Province should be entered in State field for

Canadian Address International Address must have a Country

entered

QUESTIONS & DISCUSSION

Contact Information

Tax Services Website:

http://www.financialreporting.mnscu.edu/Tax_Services/index.html Ann Page, 651-632-5007

[email protected] Steve Gednalske, 651-632-5016,

[email protected]