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The United States has strict rules regarding foreign nationals' ability to work and perform services within the United States. There are different rules that apply as well as different documentation and forms that are required, depending on the type of compensation, scholarship, or fellowship.
International students are subject to federal and New York state income taxation on any wages earned. Unless there is an applicable income tax treaty exemption, this applies to wages earned by the individual and by their family members.
Two withholding forms (W-4 and IT-2104) should be completed before an individual is hired on either the NY State payroll or the Research Foundation payroll. If these forms are not complete the highest withholding will be applied until the forms are received.
If you are a student with a F-1 or J-1 visa, AND you have resided in the United States for more than 5 calendar years, the Internal Revenue Service will treat you as a Resident Alien for tax purposes. You may complete the W-4 form without any of the below restrictions and exceptions.
For all others...
- Check the "single" box in item 3 (even if you are married).
- Put a number "one" on line 5 (unless are a resident of Canada, Mexico, India, South Korea, or a U.S. national)
- Enter "NRA" (indicating a Non-resident Alien) on line 6
- Leave line 7 blank.
Residents of India
Students with F-1 or J-1 status, who have been in the United States for five (5) years or less may claim an additional allowances on line 5 for their spouse if the spouse will have no income for the year.. In addition, they can claim an additional withholding allowance for each dependent who has become a resident alien for tax purposes.
Residents of Canada, Mexico, or South Korea
You can claim an exemption for your spouse only if your spouse had no gross income for U.S. tax purposes and cannot be claimed as a dependent on another U.S. taxpayer's return. You can also claim exemptions for your children or other dependents on the same terms as U.S. citizens. For residents of South Korea your spouse and dependents must have lived with you in the U.S for some part of the year.
If you are a student with a F-1 or J-1 visa, AND you have resided in the United States for more than 5 calendar years, the Internal Revenue Service will treat you as a Resident Alien for tax purposes. You may complete the IT-2104 form without any of the below restrictions and exceptions.
For all others...
- Check the "single" box in item 3 (even if you are married).
- Put a number "one" on line 1 (unless you are a resident of Canada, Mexico, India, South Korea or a U.S. national)
Residents of India
Students with F-1 or J-1 status, who have been in the United States for five (5) years or less may claim an additional allowances on line 5 for their spouse if the spouse will have no income for the year.. In addition, they can claim an additional withholding allowance for each dependent who has become a resident alien for tax purposes.
Residents of Canada, Mexico, or South Korea
You can claim an exemption for your spouse only if your spouse had no gross income for U.S. tax purposes and cannot be claimed as a dependent on another U.S. taxpayer's return. You can also claim exemptions for your children or other dependents on the same terms as U.S. citizens. For residents of South Korea your spouse and dependents must have lived with you in the U.S for some part of the year.
Under Treas. Reg. 1.3121 (b) (19), you are exempt from paying social security (FICA) and Medicare witholding taxes to the United States government, if you meet ALL THREE of the below criteria:
- You have a F-1 or J-1 visa
- You have been in the U.S. 5 years or less
- You perform services in accordance with the primary purpose of your visa's issuance
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IMPORTANT
If you have been in the U.S. more than 5 years, AND you are not enrolled in classes full-time, you are NOT EXEMPT from Social Security and Medicare.
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Income tax treaties exist between the U.S. and many other countries. Many of these income tax treaties will exempt or reduce the amount of income tax withholding on the compensation you earn.
Income tax treaties are based on your country of residence, NOT your citizenship.
Every treaty is different, and an Income Tax Treaties Table is available to assist you in determining if you qualify for this exemption. If you think you are eligible and have not received any paperwork please contact University HR directly.
You must complete the Employment Eligibility Verification (Form I-9) no later than 3 days after the start date of your employment.
Form I-9 contains two sections. Each employee completes the first section. The second section is completed by your department supervisor
Below is a list of recommended documentation that can be used to establish your identity and eligibility to work in the United States.
Recommended Documentation (List A):
- A valid passport
- An I-94 Arrival-Departure Record
- Forms I-20 or DS-2019
- An Employment Authorization Document
If you hold an F-1 or J-1 visa, you must meet two criteria in order to work on campus:
• Your F-1 or J-1 visa status remains valid
• Your total number of employment hours does not exceed twenty (20) hours per week while school is in session
IMPORTANT
If you work for more than one on-campus employer, the total number of hours worked from all jobs cannot exceed 20 hours per week. The exceptions for holiday periods can be found in the International Students section of the Student Memo. |
If you are a new student, and you hold an F-1 visa, and you are being employed for the first time in the United States, you must apply for a U.S. social security number. You MUST apply for an SSN as you begin working on-campus, and you MUST notify University Human Resources as soon as you receive your SSN from the U.S. Government.
To apply for a social security number you will need an Employment Verification Letter. This letter should be issued by University Human Resources and NOT by your department. Normally, you will receive this letter automatically. If you have been working more than 2 weeks and have not yet received a verification letter, please verify that your department has submitted your new hire paperwork, and then contact University HR's International Employment Unit.
In addition to the Employment Verification Letter you will need five additional items to complete an application for an SSN:
- A letter from the International Student and Scholar Services office, verifying that you are authorized to work
- Original copies of your I-20 documents
- A valid I-94 card
- A valid passport
- A completed SS-5 application
If you have any questions or concerns regarding applying for your social security number, please contact University HR's International Employment Unit.
State fellowships are paid directly to students. The U.S. government therefore considers these payments to be income and non-resident alien students are therefore subject to a fourteen percent (14%) rate of tax on the payments.
To ensure the correct deduction of taxes, and to ensure that appropriate reporting is made to the Internal Revenue Service, it is important that all payments are made through University HR's International Employment Tax Unit.
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IMPORTANT CHANGES
- All State fellowships paid to non-resident alien students will be paid on
a biweekly basis.
- All payments must be processed by University HR and not by Financial Services
- You are no longer required to enter data into the State Fellowship System
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If you are eligible for a tax treaty exemption on your State fellowship payments you must complete a W-8BEN form and return it to University Human Resources.
This regulation only applies to students who hold F-1 and J-1 visas and who have been in the U.S. for 5 years or less. Students who have resided in the U.S. longer than 5 years are considered to be resident aliens for tax purposes and ARE NOT required to pay any taxes on non-qualified scholarship. These students ARE REQUIRED to report this income on a resident income tax return.
Scholarships given to non-resident alien students for purposes other than tuition and fees must be taxed at a rate of fourteen percent (14%), unless there is an applicable tax treaty exemption. An example of a non-qualifying scholarships would be one covering room and board for the student.
Scholarship money issued directly to a student is also considered non-qualified, because expenditures can not be verified.
If you are eligible for a tax treaty exemption on your non-qualified scholarship you must complete a W-8BEN form and return it to University HR.
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