For a hardcopy pdf of this document, contact the Office of Compliance (2-8246).
Policy Title: Federal Taxation of Aliens
Policy Number: 200-62
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Responsible Officer: |
Associate Vice Chancellor of Business & Financial Services and Controller |
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Responsible Office: |
Business and Financial Services – Payroll Office |
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Origination Date: |
08/25/1999 |
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Date of Revision: |
07/05/2017 |
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Date of Last Review: |
06/30/2017 |
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Scope: |
Guidance Concerning Federal Taxation of Non-Citizen Employees |
I. Policy Summary
UC Riverside follows the UCOP policy T-182-27 on Federal Taxation of Aliens.
It is essential to determine the immigration status of any alien receiving payment from the University to ensure that the rules and regulations of both the United States Citizenship and Immigration Services (USCIS), and the Internal Revenue Service (IRS) are met. The International Service Office, along with the Payroll Office, can provide assistance regarding the terms and conditions of visa classifications, and ensure compliance with campus procedures governing payments to Nonresident employees, students and visitors.
For Federal Income tax purposes, non-citizens of the United States are classified by the Internal Revenue Service (IRS) as either RESIDENT or NONRESIDENT aliens. Non-citizens of the United States are required to have a valid VISA classification before payments are made. The IRS tax code maintains two different withholding requirements for resident and Nonresident aliens. Before a non-citizen of the United States is paid as an employee (wages), or non-employee (honoraria, scholarships and fellowship grants); residency status has to be determined. The IRS has two tests for residency status: the "green card" test and the "substantial presence" test.
· GREEN CARD TEST: A lawful permanent resident of the United States at any time during the calendar year. Holds an immigrant visa (also known as green card).
· SUBSTANTIAL PRESENCE TEST:
o Non-citizen must be physically present in the United States on at least:
§ 31 days during the current calendar year and
§ 183 days during the current year and the 2 preceding years, calculated as follows:
ª All days in current year plus
ª 1/3 of days in first preceding year plus
ª 1/6 of days in second preceding year
o EXCEPTION: Generally, DO NOT COUNT days the non-citizen is in the United States as
§ F, J, M or Q visa student for five (5) years
§ F, J, M or Q visa teacher/researcher for two (2) years.
A Nonresident alien individual married to either a U.S. Citizen or resident alien may choose to be treated as a resident alien for income tax purposes. Wages paid to these individuals are subject to the withholding rules that apply to U.S. Citizens and Residents.
II. Procedures
UC Riverside partnered with Arctic International LLC to provide Glacier Online Tax Compliance System to Noncitizens other than Permanent Residents. GLACIER is a secure online tax compliance system designed to allow Noncitizens other than Permanent Residents provide UC Riverside with their immigrant and tax data efficiently and effectively so that tax residency and income tax treaty determinations can be made.
A. The individual receives an e-mail from support@online-tax.net asking for the completion of the necessary forms via the internet that will assist UC Riverside determine how to tax the person for payroll, scholarships/fellowships, or honoraria payments.
B. The information is required to be completed in GLACIER within ten (10) days of receipt of the email from support@online-tax.net.
C. Print, review, sign, and date all forms (Tax Summary Report, etc.) created by GLACIER.
D. Mail signed forms (with required document copies as instructed on the Tax Summary Report) to:
University of California, Riverside
Accounting Office-002
Riverside, CA 92521
or drop the packet off at: Highlander One Stop Shop (HOSS) Drop Box, First Floor, Student Services Building. Monday-Friday, 9 a.m. - 5 p.m.
Do not delete the e-mail. For additional information refer to the GLACIER Brochure. Any questions, can be sent via e-mail to UCRpayroll@ucr.edu or called into 951-827-1958.
III. Related Information
· UCOP Policy T-182-27 Taxes: Federal Taxation of Aliens
· UCOP - Taxation of Nonresident Aliens
· UCR - Honoraria Payments to Nonresident Aliens
IV. FAQ
Refer to UCOP Policy T-182-27, Section VII.