Nonresident Alien Taxation
Nonresident Alien Taxation
Combing the World, Complying at Home
As you seek the best talent and services from around the world, invite them with confidence, knowing you’ve got a handle on nonresident alien taxation regulations.
Stay Prepared in an Age of Income Tax Scrutiny
Nonresident alien taxation, which encompasses the special payroll withholding, reporting rules for nonresident alien employees and the withholding of tax on U.S.-source income paid to nonresident aliens and foreign entities (traditionally referred to as NRA withholding) has become a critical issue for organizations that pay foreign individuals and entities. Upcoming implementation of FATCA rules and related forms make it more important than ever that you properly document and withhold on payments to non-U.S. persons.
Your best defense against inadvertent oversight is staying ahead of laws and international treaties that are constantly changing. That’s what ONESOURCE Nonresident Alien Taxation is all about.
Why the urgency? Corporations, universities and other nonprofits that pay foreign vendors, employ foreign workers or give financial scholarships, honoraria, fellowships or even prizes or awards to foreign nationals need to accurately process documents such as forms W-8, 8233, 1042 and 1042-S. Complicating matters, the U.S. government negotiates separate tax treaties with some 60 individual countries, each of which may impact the amount and terms of your foreign workers’ tax obligation. Taxes also depend on such factors as the precise number of days the individual has been on U.S. soil.
Organizations that attempt to handle these processes on their own often develop intricate spreadsheets containing information on each NRA or rely on industry publications. Unfortunately, even the most detailed spreadsheets and publications are bound to miss nuances and rapid changes in laws and regulations. Our ONESOURCE Nonresident Alien Taxation product will keep you and your NRAs abreast of changes as they happen. By performing complex calculations and case-by-case analyses in a matter of seconds, right down to preparing and completing all the necessary forms, we give you and your NRAs the confidence you need to embrace all the possibilities of a global workplace and education.
What you should know if you have foreign employees:Ten Rules of Paying Foreign Nationals
Paula Singer, Esq., explains details on NRA withholding and reporting on payments to foreign nationals:NRA Withholding and Reporting on Payments to Foreign Nationals
Paula Singer, Esq., weighs in on the compliance challenges that come with foreign employees:Organizations with Foreign Employees Face Compliance Challenges
Paula Singer, Esq., provides an overview how income tax treaties reduce U.S. incomes and the rules that must be followed to claim treaty benefits:Tax Treaty Benefits for Workers, Trainees, Students and Researchers
Special tax rules and opportunities surrounding U.S. taxation of J-1 exchange visitors:U.S. Taxation of J-1 Exchange Visitors