Introduction
Purpose
This policy provides information for foreign nationals who are being paid by Payroll Services, whether they are visiting Teachers/Researchers (visiting scholars) or Students (graduate student research and teaching assistants as well as other student employees).
Scope
Foreign nationals who are being paid by Payroll Services for services performed, whether they are visiting Teachers/Researchers (visiting scholars) or Students (graduate student research and teaching assistants as well as other student employees).
Policy
Policy Statement
All individuals who are receiving compensation for dependent services (also referred to as payroll, compensation, or wages) are required to show proof of identity and permission to work during the I-9 process. Additionally, every foreign national intending to work for the University and receive payroll will need to have their tax status determined by Payroll Services to ensure accuracy of payments and to support the individual's and University's tax compliance.
For tax purposes, the University classifies a foreign national's tax status as either "resident alien" or "nonresident alien". As a general rule, resident aliens are taxed in the same manner as U.S. citizens, while nonresident aliens are subject to special taxation procedures regulated by the Internal Revenue Code. These special tax codes not only affect the manner in which nonresident aliens are taxed but also imposes different rules on how the University is required to withhold tax and file reports with respect to payments made to nonresident aliens.
In order to determine tax status, each foreign individual will need to provide to Payroll Services electronic copy of the following documentation:
- Form PR-100: Foreign National Payroll Tax Assessment Form-This form to be completed by the foreign national and must include ALL prior U.S. visits in section III for Payroll Services to accurately determine tax status.
- Visa page and entry stamps
- Passport page
- Most recent I-94
- Associated document for visa type (such as I-20 for F-1 visa, DS-2019 for J-1 visa, etc.)
- EAD (Employment Authorization Document/card) if applicable
The exception where one does not need to provide all the above documents is for foreign nationals who:
- have a Green Card (also known as Permanent Resident Card), in which case copy of the Green Card front and back can be provided.
- are classified under DACA (Deferred Action for Childhood Arrivals), in which copies of front and back of the EAD card can be provided.
Foreign nationals may be exempt from U.S. income tax on some or all wages earned if such payments qualify under a tax treaty between the U.S. and their country of residence. Payroll Services will include in their tax analysis for each foreign national a review to see if they qualify for tax treaty benefits. If they qualify for tax treaty benefits, Payroll Services will notify the foreign national and provide the associated documents to the foreign national for review and signature if they choose to claim those tax benefits.
Exceptions
None.
Additional Information
Special Situations
None.
Frequently Asked Questions
None.
Related Requirements
External Regulations and Consequences
None.
University Policies, Standards, and Procedures
Contact Information
Policy Contact
| Subject |
Contact |
Telephone |
Fax |
E-Mail |
| Foreign Nationals |
Payroll Services |
919-962-0047 |
|
payroll@unc.edu |
History
Revised:
- June 6,2023-added DACA language
- April 5, 2023-updated language
- October 13, 2017 - Updated main Payroll phone number.
- September 2, 2009
- May 29, 2007
- January 3, 2005