Nonresident Alien Taxation
Alien Taxation
and Forms
and Other Resources
Employing Nonresident Aliens (NRA)
Student Assistant
Student Assistant
Purpose
In order to comply with Federal (Internal Revenue Service and Treasury Department) and State (Franchise Tax Board) rules and regulations, each SFSU department must comply with these procedures when employing nonresident aliens. The Chancellor’s Office requires CSU campuses to comply with the Internal Revenue Code, California Revenue and Taxation Code, and California State University polices and procedures regarding nonresident alien taxation issues. These procedures are intended to assist campus departments when employing nonresident alien student assistants. These procedures for nonresident aliens are in addition to all current hiring/payment procedures required by Human Resources, Safety & Risk Management (HRS & RM) .
Procedure and Responsibility
Step 1
Campus Department
Upon selecting a student assistant candidate, send the student to the Office of Student Financial Aid (OSFA) to complete an I-9 Employment Eligibility Verification (EEV) form.
Step 2
Office of Student Financial Aid
The Office of Student Financial Aid (OSFA) will determine whether the student assistant is a Nonresident Alien (NRA) by administering the I-9 Employment Eligibility Verification (EEV) form.
A. If the student assistant is a US Citizen or Permanent Resident Alien, OSFA will complete the certification of the I-9 and refer the student back
to the department along with OSFA’s EEV.
B. If the student assistant is a Nonresident Alien, OSFA will complete the certification of the I-9, issue OSFA’s Nonresident Alien EEV with the
work authorization expiration date, provide the student assistant a SFSU Foreign National Information Form to complete, and direct the
student to make an appointment with the Tax Specialist in Internal Audit and bring the necessary documents stated on the form.
Campus Departments
If a student WAS NOT identified as a Nonresident Alien, the department should follow the usual process in completing and processing the student’s hiring paperwork, e.g. Student Payroll Action Request (SPAR) form.
Step 3
Internal Audit
At the meeting with the NRA student assistant, the Tax Specialist will:
A. Review and discuss the SFSU Foreign National Information Form along with all the supporting documents. The Tax Specialist will determine
the nonresident alien employee’s tax residency status, the applicable income tax withholding rate, and whether some or all of the wages of the
employee are exempt from income and FICA tax withholding under a federal income tax treaty.
B. Provide and have the student assistant complete an Employee Action Request (EAR) form, Designation of Person Authorized to Receive
Warrants, Oath of Allegiance/Declaration to Work, and a Biographical Form.
Note: If the student is determined to be a resident alien for tax purposes, he/she will be requested to complete a SPAR form instead.
Upon completion of all the forms required, the Tax Specialist will:
C. Forward the four completed forms: Employee Action Request (EAR) form; Designation of Person Authorized to Receive Warrants; and Oath
of Allegiance/Declaration of Permission to Work, and a Biographical Form to HRS & RM - - Payroll Unit .
D. Give the student assistant the original “Nonresident Alien EEV” (with the work authorization expiration date) and pink copy of the EAR form,
and request he/she to take the forms back to their department and complete the hiring process.
Step 5
Campus Department
The campus department will complete the hiring process by processing a 107 (Appointment Form) document and submitting it to the Payroll Unit of HRS & RM. until the department has completed the training for E-TRAC Student Hires. Payroll must be submitted on the form 672 (Attendance Form) and not the form CD048 for NRA Students. In order to process pay rate changes for NRA Students a new 107 or Student E-TRAC must be submitted to change the pay rate.
Internal Audit developed these procedures in conjunction with the Payroll Unit of HRS & RM.