Foreign National Taxation and Reporting


The types of payments that the University can make to foreign nationals depend upon their visa status.  Some may be given compensation while others can only be reimbursed for expenses.  I.R.S. regulations and University policies further limit the types of payments foreign nationals may receive.  Depending on the type of payment, all payments made to or on behalf of a foreign national are generally subject to income tax withholding unless specifically exempted either by U.S. tax law or an income tax treaty.

Taxation

All foreign national students and faculty are first reviewed by Faculty Administration to ensure that the proper visa status is in place for them to receive payment from the University.  The individuals are all then reviewed by the Associate Controller in the Finance Office to determine appropriate taxation and reporting requirements.  All foreign nationals will be contacted by the Associate Controller prior to receiving payment from the University and any required forms will be obtained at that time.

In general if the individual is eligible for an income tax treaty benefit either a Form 8233, Form W-8BEN or W-9 will be required to be signed and submitted to the University.  The Finance Office will determine the appropriate form upon review of the individual's information.  If a treaty benefit is not available the individual will receive a W-4 to fill out in accordance with their residency status.

Social Security and Medicare taxes (FICA) are not exempted under an income tax treaty benefit and employees receiving compensation are subject to these taxes at the point they become a resident alien for tax purposes.  This will also be determined by the Finance Office in accordance with IRS regulations.

Reporting


All foreign nationals who receive an income tax treaty benefit will receive a form 1042-S from the University no later than March 15th of the following year they received payment.  All individuals who did not have treaty benefits and/or were subject to FICA taxes will receive a W-2 from the University no later than January 31 of the calendar year in which they received the payment.

As a reminder all individuals who receive payment in the United States are required to file an income tax return for the calendar year in which you receive the payment.

The office is located on the second floor of Founders Hall, Room 204D

Kretina Wright, Associate Controller & Director
Phone Number:  (212) 327-8388
Fax Number:  (212) 327-8533
Email:  Kretina.Cook@rockefeller.edu