Foreign National Employee Information

Current tax requirements, and the documents and forms required by the Penn State Payroll Office for all Penn State Foreign National (non-US Citizens) employees are listed below.

DOCUMENTS and FORMS  for Non-U.S. CITIZENS

Please UPLOAD all REQUIRED Documents and completed Forms  

    Use this link  -  Payroll Non-US Citizen Forms and Required Documents  to Worklion's -  Submit an Inquiry page. 

It will provide the form(s) to the payroll office.  

IF Your SSN is listed on the form(s). DO NOT send the forms as an attachment to an email

Employee Status Documents and Forms Required - Upload to: 

 Payroll Non-US Citizen Forms and Required Documents 

 FORMS Optional -  Upload  to: 

 Payroll Non-US Citizen Required Documents                                

F-1 VISA 

Alien Information Request Form

Photocopy of most recent  I-94 Document - please save the

document using your PSU ID# and your name and I-94 

IRS W-9 Form  page 1  If applicable (Resident for US Tax Purposes)

UPLOAD FORMS to:

 

IF Your SSN is listed on the form(s).

DO NOT send the forms as an attachment to an email. 

 

TAX TREATY

NRA (Non-Resident Alien for US Tax Purposes)

Form 8233 (if from a tax treaty country)

 8233 IRS Instructions
Revenue Procedure Form 87-8 

OR

RA (Resident for US Tax Purposes)

Attachment to the IRS W-9

IRS W-9 Form   page 1 

J-1 VISA  (student)
Alien Information Request Form
Photocopy of most recent  I-94 Document
Copy of most recent DS-2019
 

TAX TREATY

NRA (Non-Resident Alien for US Tax Purposes)

Form 8233 (if from a tax treaty country)

 8233 IRS Instructions
Revenue Procedure Form 87-8 

OR

RA (Resident for US Tax Purposes)

Attachment to the IRS W-9

IRS W-9 Form   page 1

J-1 VISA (non-student
Alien Information Request Form 
Photocopy of most recent  I-94 Document
Copy of most recent DS-2019
 
W-9 Form  page 1  if applicable (Resident for US Tax Purposes)

TAX TREATY

NRA (Non-Resident Alien for US Tax Purposes)

Form 8233 (if from a tax treaty country)

 8233 IRS Instructions
Revenue Procedure Form 87-8 

OR

RA (Resident for US Tax Purposes)

Attachment to the IRS W-9

IRS W-9 Form   page 1

H-1B Visa
 
Alien information Request Form 
 Photocopy of most recent  I-94 Document
 

TAX TREATY

NRA (Non-Resident Alien for US Tax Purposes)

Form 8233 (if from a tax treaty country)

 8233 IRS Instructions
Revenue Procedure Form 87-8 

OR

RA (Resident for US Tax Purposes)

Attachment to the IRS W-9

IRS W-9 Form    page 1

Permanent Resident

Alien Information Request Form

IRS W-9 Form  page 1  If applicable (Resident for US Tax Purposes)

TAX TREATY

Eligible for consideration - China 

RA (Resident for US Tax Purposes)

Attachment to the IRS W-9

IRS W-9 Form    page 1

Political Asylum or Refugee 
Alien information Request Form 
 Photocopy of most recent  I-94 Document
 Copy of EAD card
IRS W-9 Form    page 1 If applicable (Resident for US Tax Purposes)
 
All Other Visa's
Alien information Request Form 
 Photocopy of most recent  I-94 Document
 Copy of EAD card
 

Taxes (FICA/MEDIA, Federal, State, Local)

Federal Income Tax:

Federal Income Tax is withheld according to the Federal graduated tax tables located in IRS Publication 15-T.  PSU,  uses the Percentage Method for federal income tax withholidng, using the Annual calculation, in conjunction with the information provided by the employee on their IRS W-4.  The Internal Revenue Service (IRS) requires all Non-Resident Aliens (NRA) to use IRS Notice 1392 instructions to complete the IRS W4 Employee’s Withholding Certificate (referred to as Federal Tax Elections during onboarding in Workday).  Excerpt from Notice 1392: Step 1(c): Personal Information. Check the Single or Married filing separately box regardless of your actual marital status. 

Federal Income Tax Treaty

A Foreign National employee may qualify to be exempt from federal income tax if there is a tax treaty with the U.S. and their country of  permanent residence.  Not all countries have a tax treaty that allows exemption from federal income tax, as well as, not all individuals qualify for the tax treaty benefit. The tax treaties vary by Country in the taxable federal income excluded from income tax and number of eligibility years.  To apply for the tax treaty benefit, each calendar year the individual must complete Form 8233 (8233 IRS Instructions) and the Revenue Procedure Form 87-8 for students or trainees, or Revenue Procudure form 87-9 for teachers and researchers. The form is reviewed in the Payroll Office and then forwarded to the IRS for final approval. It is the responsibility of the individual employee to make sure the forms are completed each calendar year of eligibility.

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Pennsylvania State and Local City Tax: 

All employees at Penn State University have the local City tax and State of Pennsylvania taxes withheld. After the calender year is over, they may file a tax return to request a refund or a partial refund. The determination of any refund is made by the local City tax office for City tax and the State of Pennsylvania for the State taxes.

OASDI(FICA)/MEDI Taxes:

Are based on your US residency status for federal tax purposes  Refer to the IRS Substantial Presence Test for complete instructions to determine US residency status

                                                         i.e. NRA Non-Resident Alien for US residency status for tax purposes or RA Resident Alien for US residency status for tax purposes

OASDI (FICA)/MEDI Taxes for F-1 and J-1 students that are in Non-Resident Alien (NRA) Status for US federal tax purposes, are not withheld for five calendar years or any part of five calendar years beginning with their very first date of arrival on a F or J visa into the USA (NRA Rule 3121(b)(19)). When the student reaches the sixth year this tax will be withheld (unless they meet the criteria for the student exemption that became effective July 1, 2001 Student Rule 3121(b)(10)). To determine when the OASDI (FICA)/MEDI tax will begin to be withheld, you need to know the month and year the person first entered the U.S.on a F or J  visa. Note: If the individual was in the U.S. for one day of a calendar year, that entry day will count as an entire calendar year.

Example: Enter U.S. December 20, 2017 on an F-1 visa.  The first tax year would be 2017, second year 2018, third year 2019, fourth year 2020 and the fifth and the last year of exemption would be 2021. Therefore, beginning with January 2022 the OASDI(FICA)/MED tax would be withheld.

OASDI(FICA)/MEDI Taxes for J-1 non-students that are in Non-Resident Alien (NRA) Status for US federal tax purposes(arriving in the USA for the first time), are not withheld for two calendar years or any part of two calendar years, beginning with the very first date of arrival to the U.S.   Note: If the individual was in the U.S. for one day of a calendar year, that entry day will count as an entire calendar year.  When the individual remains in the U.S. for year three they will begin to have this tax withheld. 

Example: Enter U.S. for the first time on October 20, 2019.The first calendar year would be 2019 and the second calendar year would be 2020. Therefore, beginning with January 2021 the OASDI(FICA)/MEDI tax would be withheld.

NOTE:

J-1 non-student visa holders have a 6 year 'look back period' to determine if the person has been in the US with an Exempt year status.  In the example above, the person is arriving in the US for the very first time,(has never been to the USA) therefore the 6 year look back period  would not have any Exempt year history in 2019.  Beginning 2020 the 6 year look back period would have one Exempt year (2109) allowing for 2020 to be the 2nd Exempt year.  Beginning Jan. 2021 the 6 year look back period would have 2 Exempt years, making 2021 non-exempt and eligilbe to have OASDI(FICA)/MEDI Taxes withheld.