Processing for Payroll
Processing for payroll at WVU and WVU Research Corporation (WVURC) consists of multiple
parts. Foreign national employees at WVU and WVURC complete their payroll processing
with WVU Tax Services. While processing for payroll, WVU Tax Services will collect
information and documents from an employee to:
- Determine the U.S. tax status for an employee and ensure that the appropriate tax withholding forms are completed for payroll payments made to the employee;
- Determine the tax treaty eligibility for an employee and provide the employee the appropriate documents to claim applicable tax treaty benefits;
- Complete the employer portion of Form I-9, Employment Eligibility Verification, to confirm that an employee has appropriate documentation to work for WVU or WVURC; and
- Verify an employee has sufficient documentation to establish direct deposit for payroll payments.
These steps are outlined below. For answers to specific questions, please review
the
International Payroll Processing FAQs. Additional information for F-1 and
J-1 students is available on the International Students & Scholars Services
Student Employment page. Payroll processing for international students and
employees is available by appointment only. To begin processing for payroll,
an employee should
email Tax Services.
Tax Status Determination
Foreign nationals working in the United States are potentially subject to different tax withholding rules than U.S. citizens and lawful permanent residents. The rules that apply are based on an individual's U.S. tax status. A foreign national will have a tax status of either nonresident alien or resident alien. An employee's tax status is separate from their citizenship status. All foreign national employees at WVU and WVURC (i.e., all employees that are not U.S. citizens or lawful permanent residents) will have a citizenship status of non-resident alien, regardless of their tax status.A nonresident alien for income tax purposes is subject to special tax withholding rules. In general, they are not entitled to claim tax credits and deductions available to U.S. citizens and lawful permanent residents.
- A nonresident alien is required to complete their Form W-4, Employee's Withholding Certificate, for federal income tax withholding using a filing status of "Single/Married Filing Separately" regardless of their actual marital status and cannot make additional adjustments to their Form W-4. Federal tax will generally be withheld at a higher rate than for U.S. citizens, lawful permanent residents, and resident aliens. IRS Notice 1392 [PDF], Supplemental Form W-4 Instructions for Nonresident Aliens, addresses the special Form W-4 rules for a nonresident alien.
- For West Virginia state income tax withholding, a nonresident alien employee may only claim a maximum of one exemption on Form WV IT-104, West Virginia Employee's Withholding Exemption Certificate.
- A nonresident alien may not claim exempt from federal or state income tax withholding.
- A nonresident alien in F-1 or J-1 status is exempt from Medicare and Social Security tax withholding when engaged in authorized employment.
- A nonresident alien will complete a Form 1040-NR, U.S. Nonresident Alien Income Tax Return, when completing their federal tax return instead of a Form 1040, U.S. Individual Income Tax Return. Form 1040-NR cannot be completed using TurboTax, HR Block, or other tax preparation services. WVU Tax Services and the WVU Office of Global Affairs make tax preparation software available for free to nonresident alien students and employees to complete Form 1040-NR. Please see Filing a United States Tax Return for additional information.
- A resident alien is not subject to special withholding rules, requirements, or restrictions when completing Form W-4 for U.S. federal income tax withholding.
- For West Virginia state income tax withholding, a resident alien may claim as many exemptions on Form WV IT-104 as they are entitled to claim on their tax return.
- A resident alien may claim exempt from federal or state income tax withholding.
- A resident alien engaged in student employment may qualify for exemption from Medicare and Social Security tax withholding if enrolled in sufficient credit hours during a semester. Please see FICA Tax Withholding for additional information.
- A resident alien will complete a Form 1040 federal income tax return. A resident alien can use any tax preparation software or services available to U.S. citizens and lawful permanent residents. WVU does not have recommendations on specific tax preparation software or services. GLACIER Tax Prep cannot be used to prepare a federal income tax return for a resident alien.
While processing for payroll, WVU Tax Services will collect information from an
employee to determine their U.S. tax status. After determining an employee's
tax status, Tax Services will provide an employee with the appropriate tax withholding
forms to complete.
Tax Treaty Eligibility
Some countries have agreements with the United States to exempt tax residents of that country from tax withholding when the individual is working in the United States. These agreements are called tax treaties. Tax treaties covering payroll payments exempt some portion of an employee's earnings from U.S. income tax withholding. When an employee processes for payroll, WVU Tax Services will determine if the employee is eligible for tax treaty benefits. If an employee is tax treaty eligible, WVU Tax Services will provide the employee with the appropriate documents to complete to claim the tax treaty exemption. Additional information can be found on the Tax Treaties page.Completing Form I-9
All employees working in the United States, regardless of citizenship status, nationality, and country of origin, are required to complete Form I-9, Employment Eligibility Verification, as part of their payroll onboarding process. Form I-9 is a U.S. Citizenship and Immigration Services form that is used to verify an employee is legally permitted to work in the United States. Completing Form I-9 prior to beginning work is a requirement under the United States Code of Federal Regulations (8 CFR § 274a.2).Form I-9 consists of an employee portion (Section 1) and an employer portion (Section 2). Section 1 must be completed no later than an employee's first day of work. Section 2 must be completed within three (3) business days of the employee's first day of work. Once Sections 1 and 2 of Form I-9 have been completed, the employee's information will be sent to E-Verify to confirm the employee's work authorization.
Note: WVU and WVU Research Corp do not permit an employee to be entered into the payroll system until Section 2 has been completed. An employee's WVU account (including system log in information and WVU email account) will not be created, and the employee will not be able to obtain WVU-issued photo ID, until Section 2 has been completed and the employee has been entered into the WVU/WVURC payroll system. This applies even if the employee has started working before Section 2 has been completed.
- When completing
Section 1 of Form I-9, a new employee will provide their personal information
and attest under penalty of perjury to their employment authorization status.
After completing Section 1, an employee must present documents to their employer
demonstrating their identity and employment authorization status. The documents
presented must be original, physical copies (i.e., not photocopies, scans,
or pictures) and must be presented in person by the employee (i.e., the documents
cannot be presented by the employee's supervisor and the documents cannot be
presented remotely via Zoom, FaceTime, or other electronic communication programs).
Documents that are issued electronically (such as Form I-94 from
U.S. Customs and Border Protection or Form I-20 issued by WVU International
Students & Scholars Services) must be printed and physically signed by
the employee (if an employee's signature is required, such as on Form I-20)
to be considered acceptable.
- The documents that can be presented by an employee are outlined by U.S. Citizenship and Immigration Services on the List of Acceptable Documents. An employee must present one List A document (or a combination of documents that are together considered one document, such as a foreign passport, Form I-94, and Form I-20) or one document from each of Lists B and C. Additional information on Section 1 is available for Foreign Academic Students (F-1 and M-1) and Exchange Visitors (J-1).
- When completing Section 2 of Form I-9, the employer will review the original, physical copies of the documents presented by an employee and record the information. The employer is required to review the documents in the physical presence of the employee. This means that the documents may not be presented by someone else on behalf of the employee. The employee will receive their documents back once the information from the documents has been recorded on Section 2.
-
After Section 1 has been completed by the employee and Section 2 has been completed
by the employer, a new employee's information will be sent to E-Verify.
E-Verify is a web-based system managed by the U.S. Department of Homeland
Security (DHS) and the U.S. Social Security Administration (SSA). E-Verify
confirms that the information provided by an employee when completing Form
I-9 matches the information in DHS and SSA records, and verifies that an employee
is authorized to work in the United States. WVU and WVU Research Corporation
are both E-Verify participating employers and must submit all new employees
(regardless of nationality and citizenship status) for verification through
E-Verify.