All employees are responsible for completing the proper tax forms and for notifying the University promptly of any changes in their tax status (i.e. changes in residence, changes in withholdings, etc.).
All employees must complete a W-4, Employee Withholding Certificate and either a Form D-4 (District of Columbia), Form MW-507 (State of Maryland), or Form VA-4 (Commonwealth of Virginia) to establish the amount of tax to be withheld. Employees residing in Pennsylvania may elect to have PA tax withheld. No PA form is required, except a Form D-4-A (District of Columbia Non-Resident) must be completed. Withholding allowances determine how much income tax is withheld from each paycheck. Employees may obtain these forms from Payroll Services at (202) 994-9363 or may pick up needed withholding certificates from Payroll Services located at the Academic Center, First Floor.
If an employee moves to a new state, a new state withholding form must be prepared. If an employee wants to change the current number of exemptions, a new W-4, Employee Withholding Certificate and/or the appropriate state withholding form - either a Form D-4 (District of Columbia), Form MW- 507 (State of Maryland), or Form VA-4 (Commonwealth of Virginia) must be completed and returned to Payroll Services.
During the year, an employee may change the number of withholdings by submitting a new W-4. Payroll Services will enter the change into the Human Resource System. The change will be reflected in the first or second payroll check following the request, depending on the timing of the request during the Human Resource System's processing cycle.
Claiming Exemption From Withholding
Employees who meet IRS guidelines may claim exemption from income tax withholding. Information on claiming exemption from withholding can be found on the tax forms. By claiming this exempt status, no federal or state taxes will be withheld.
Mandatory Renewal of Exemption From Withholding
Exemption from withholding expires at the end of the calendar year. Each calendar year, employees must file new tax forms to claim the exempt status in order to maintain the exempt status for the upcoming year. If an employee's exempt status is not renewed, the University must begin withholding income taxes at the single and zero (0) exemption rate.
Wages are exempt from FICA only for a degree-seeking, full or part-time student attending classes at The George Washington University. Full and part-time student status will be defined by the University's Registrar's Office. Students wages earned for work performed during the summer months while not attending classes are not automatically exempt from FICA. Wage payments to non-degree candidates are not exempt from FICA tax.
A student may elect to have FICA withheld by completing a FICA Withholding Certificate. The Certificate is available at Records and Benefits and should be returned there upon completion.
Tax Withholding Guidelines for Foreign Nationals
The Internal Revenue Service (IRS) separates Foreign Nationals into two tax categories: resident aliens and nonresident aliens. Tax regulations differ for each of these categories.
General tax withholding requirements for federal, state and FICA taxes are provided below. This information is intended to give resident and nonresident alien employees an overview of the requirements for completing and filing a tax withholding form. Employees should obtain guidance concerning specific or detailed information from their tax advisor/practitioner and/or from reading IRS tax publications.
It is the responsibility of the individual to answer such questions as:
Am I subject to the tax jurisdiction of the state?
Am I required to file a state income tax return?
This is important because the IRS typically shares tax information with each of the 50 states and the District of Columbia. One item of information the IRS provides relates to situations where an individual received income that was subject to federal withholding and taxation but where no state income tax was withheld. One can presume that a state receiving this information will take appropriate action to determine why no state income tax was withheld by the University and whether state income tax was paid by the individual.
Resident Alien Nonstudent Employees
Federal Tax Withholding: Resident alien nonstudent employees are treated like U.S. citizens for tax withholding purposes. Employees must file a W-4, Employee Withholding Certificate, to establish the amount of tax to be withheld.State Tax Withholding: Resident alien nonstudent employees are treated like U.S. citizens for tax withholding purposes. Employees must file either a Form D-4 (District of Columbia), Form MW-507 (State of Maryland), or Form VA- 4 (Commonwealth of Virginia) to establish the amount of tax to be withheld.
FICA: Resident alien nonstudent employees are treated like U.S. citizens for tax withholding purposes.
Resident Alien Student Employees
Federal Tax Withholding: Resident alien student employees are treated like U.S. citizens for tax withholding purposes. Employees must file a W-4, Employee Withholding Certificate, to establish the amount of tax to be withheld.State Tax Withholding: Resident alien student employees are treated like U.S. citizens for tax withholding purposes. Employees must file either a Form D-4 (District of Columbia), Form MW-507 (State of Maryland), or Form VA-4 (Commonwealth of Virginia) to establish the amount of tax to be withheld.
FICA: Wages are exempt from FICA tax only for a degree-seeking, full or part-time student attending classes at The George Washington University. Full and part-time student status will be defined by the University's Registrar's Office. Students wages earned for work performed during the summer months while not attending classes are not automatically exempt from FICA.
Wage payments to non-degree candidates are not exempt from FICA tax.
A student may elect to have FICA withheld by completing a FICA Withholding Certificate. The Certificate is available at Records and Benefits and should be returned there upon completion.
Nonresident Alien Nonstudent Employees
Federal Tax Withholding: Nonresident alien nonstudent employees not covered by a tax treaty will have taxes withheld based on ONE withholding allowance, single marital status, PLUS a biweekly deduction of $15.30 for biweekly paid employees or $33.10 for monthly paid employees. Exceptions to the "one allowance" rule: nonresident aliens from Canada, India, Japan, Korea or Mexico.Nonresident alien nonstudent employees claiming exemption from withholding because of an income tax treaty MUST submit to the employer (GW) a completed IRS Form 8233 and the appropriate statement from IRS Revenue Procedures 87-8, 93-22, or 93-22A in order to be exempt from withholdings. The employer (GW) will submit Form 8233 and the corresponding statement to the IRS for a determination of the amount of exemption allowed for the nonresident alien. If the IRS does not respond in ten business days of mailing to the employer, the employee will be considered tax-exempt (up to the exemption limit specified in the treaty, if any).
State Tax Withholding for the District of Columbia and the Commonwealth of Virginia: Nonresident alien nonstudent employees residing in the District of Columbia or the Commonwealth of Virginia who are claiming exemption from withholding because of an income tax treaty and the exemption has been approved by the IRS, will be exempt from state tax (up to the exemption limit specified in the treaty, if any). Individuals who are not claiming exemption from tax withholding are treated like a resident of the state in which they reside and must file either a Form D-4 (District of Columbia) or Form VA-4 (Commonwealth of Virginia) to establish the amount of tax to be withheld.
State Withholding for the State of Maryland: Nonresident alien nonstudent employees residing in the State of Maryland are not allowed to claim exemption from withholding because of a tax treaty and must be treated as a resident of the state. Individuals must file a Form MW 507 (State of Maryland) to establish the amount to be withheld.
FICA: Wages earned by nonresident alien nonstudent employees on "J-1" visas, who are permitted to work at GW, are exempt from FICA tax for two calendar years beginning the first year present in the U.S. under the "J-1" visa, if they were not exempt as a teacher, trainee, or student for any two of the last six calendar years. In all other cases, wages earned by nonresident alien nonstudent employees are treated like wages for US citizens for FICA withholding purposes.
Social Security Totalization Agreements. The United States has entered into totalization agreements with several countries. Under the terms of these agreements, employees and employers who would otherwise have to pay Social Security taxes to BOTH countries will only have to pay to one country. Thus items shown that are taxable for Social Security and Medicare may be exempt if covered by a totalization agreement. Employees and employers who are exempt under the agreement are exempt from both the Social Security (6.2%) portion and the Medicare (1.45%) portion. At this time the United States has agreements with Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. For more information about Social Security totalization agreements, contact the Social Security Administration, Office of International Policy, P.O. Box 17742, Baltimore, MD 21235. (See IRS Revenue Procedures 80-56, 1980-2 C.B. 851, and 84-54, 1984-2 C.B. 489, for information on how to prove the exemption.)
Nonresident Alien Student Employees
Federal Tax Withholding: Nonresident alien student employees not covered by a tax treaty will have taxes withheld based on ONE withholding allowance, single marital status, PLUS a deduction of $15.30 for biweekly paid employees or $33.10 for monthly paid employees. Exceptions to the "one allowance" rule: nonresident aliens from Canada, India, Japan, Korea or Mexico.Nonresident alien student employees claiming exemption from withholding because of an income tax treaty MUST submit to the employer (GW) a completed IRS Form 8233 and the appropriate statement from IRS Revenue Procedures 87-8, 93-92 or 93-22A in order to be exempt from withholdings. The employer (GW) will submit Form 8233 and the corresponding statement to the IRS for a determination of the amount of exemption allowed for the nonresident alien. If the IRS does not respond in ten business days of mailing to the employer, the employee will be considered tax-exempt (up to the exemption limit specified in the treaty, if any).
State Tax Withholding for the District of Columbia and the Commonwealth of Virginia: Nonresident alien student employees residing in the District of Columbia or the Commonwealth of Virginia who are claiming exemption from withholding because of an income tax treaty and the exemption has been approved by the IRS, will be exempt from state tax (up to the exemption limit specified in the treaty, if any). Individuals who are not claiming exemption from tax withholding are treated like a resident of the state in which they reside and must file either a Form D-4 (District of Columbia) or Form VA-4 (Commonwealth of Virginia) to establish the amount of tax to be withheld.
State Withholding for the State of Maryland: Nonresident alien student employees residing in the State of Maryland are not allowed to claim exemption from withholding because of a tax treaty and must be treated as a resident of the state. Individuals must file a Form MW 507 (State of Maryland) to establish the amount to be withheld.
FICA Withholdings: Wages earned by nonresident alien student employees on "F-1" or "J-1" visas, who are permitted to work at GW, are exempt from FICA for five calendar years beginning the first year they are present in the U.S. under the "F-1" or "J-1" visa. In all other cases, wages earned by nonresident alien student employees are subject to FICA as resident alien student employees.
Social Security Totalization Agreements. The United States has entered into totalization agreements with several countries. Under the terms of these agreements, employees and employers who would otherwise have to pay Social Security taxes to BOTH countries will only have to pay to one country. Thus items shown that are taxable for Social Security and Medicare may be exempt if covered by a totalization agreement. Employees and employers who are exempt under the agreement are exempt from both the Social Security (6.2%) portion and the Medicare (1.45%) portion. At this time the United States has agreements with Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. For more information about Social Security totalization agreements, contact the Social Security Administration, Office of International Policy, P.O. Box 17742, Baltimore, MD 21235. (See IRS Revenue Procedures 80-56, 1980-2 C.B. 851, and 84-54, 1984-2 C.B. 489, for information on how to prove the exemption.)
Some useful tax publications for Foreign National employees include:
Publication 513 - Tax Information for Visitors to the United States Publication 515 - Withholding of Tax on Nonresident Aliens and Foreign Corporations Publication 519 - U.S. Tax Guide for Aliens Publication 901 - U.S. Tax Treaties
These publications may be obtained free of charge from the IRS by calling 1-800-829-3676.
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