Enter Tax Data for NRA's - No Treaty For Tax Purposes Only

Purpose
The purpose of this task is to enter Federal and State tax data, and Local tax data (if applicable) for a Nonresident alien - no treaty/for tax purposes only. NOTE: These employees receive a Form W-2 (Wage and Tax Statement) instead of Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding).

Helpful Hints

• When an NRA employee is not covered by a tax treaty, or has reached their tax treaty maximum, they are subject to federal, state, and local taxes in the same manner as a regular employee.

Navigation Path

Main Menu > Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data

Steps:

1. Select Main Menu.
2. Select Payroll for North America.
3. Select Employee Pay Data USA.
4. Select Tax Information.
5. Select Update Employee Tax Data.
6. Enter employee’s EMPLID.
7. Check the Include History checkbox to view all records for the employee.
8. Select the Search button.
9. The Federal Tax Data page displays.
10. To begin, insert a new effective-dated row.
11. The Effective Date on the new row defaults to the current date. Change the default date to the date the tax change should take effect.

NOTE: This date should be the beginning of a pay period.

12. In Special Tax Withholding Status data area, select 'Non-Resident Alien’.

13. Select the Tax Marital Status shown on the employee's W-4 form.
14. Enter the number of Withholding Allowances shown on the employee's W-4 form.
    • The Amount and Percentage fields in the FWT Additional Amount area are not used.
    • The Exempt from FUT checkbox is not used, but should always remain checked.
    • Earned Income Credit is not used.
    • W-4 and W-5 Processing Status is not used.
    • The fields in the Lock-In Details area are not used.
    • State Tax Options is not used.

15. Tax Treaty/Non-Resident Data Fields.
16. Enter the Country indicated on Form 8233.
17. Eligible Income Code field should be left blank.
18. The Treaty ID field should indicate that the employee is not covered by a Tax Treaty. Select “No Treaty ID” Or “No Treaty”.
    • Form W-9 Recd is not used.
    • W-9 In Effect Date is not used.

19. Enter the Taxpayer ID Number, if applicable.

NOTE: Do NOT enter SSN here. If have SSN, do not fill in Taxpayer ID Number. Put SSN National ID field follow path: Main Menu > Workforce Administration > Personal Information > Modify a Person.

20. Enter the Date of Entry into the United States.

NOTE: This date can be found on the Form 8233 submitted by the employee.

21. The Treaty Exp Date is not used.
22. The Treaty ID field should indicate that the employee is not covered by a Tax Treaty.

• No entry is required in the Form 8233 Recd field.
• No entry is required in the 8233 In Effect Date field.
• 8233 Exp Date is not used.
• Form W-8 Recd is not used.
• W-8 In Effect Date is not used.
• W-8 Exp Date is not used.

23. Continue to the State Tax Data page only if a State tax form IT-2104 was submitted by the employee with a withholding status other than Single with 0 withholding allowances.
24. Select the State Tax Data tab.
25. The State field should remain "NY".
26. The Resident field should remain checked regardless of the employee's actual residency status.
27. The Non-Residency Statement Filed checkbox is for agency informational purposes only. It does not affect payroll processing or the application of State tax rules.
28. Confirm that the UI Jurisdiction is checked.
29. In the Special Tax Status area, confirm 'None'.
30. Enter the SWT Marital/Tax Status shown on the IT-2104 submitted by the employee.
31. Enter the Withholding Allowances shown on the IT-2104 submitted by the employee.
32. Local Tax Data:
    If the employee lives and works within the five boroughs of NYC, local taxes are also paid. Continue to the Local Tax Data page to enter local taxes, if applicable.
33. Continue to the Local Tax Data page.
34. Confirm the Locality shown.
35. Confirm that the Resident option is checked.
36. Confirm that the Special Tax Status is None.
37. Enter the Marital/Tax Status shown on the employee's Form IT-2104.
38. Enter the number of allowances for NYC shown on the employee's Form IT-2104.

• Additional Withholding Amount is not used.
• Percentage is not used.

39. Select the Save button.
    
    

Result

Federal and State tax data, and Local tax data, if applicable, have been entered into the Payroll System for a Nonresident alien employee - no treaty/for tax purposes only.

Bureau of State Payroll Services payroll@osc.ny.gov