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Accounting Procedures

PROCEDURE TITLE:

Nonresident Alien Employees - Tax Compliance

PROCEDURE NUMBER:

PYPR 04

RELATED POLICY STATEMENT(S):

PYPL 03

DATE ISSUED: 

January 1, 1996

DATE REVISED:


OVERVIEW

 

This procedure contains guidelines for nonresident employees who wish to exempt their compensation from federal and state withholding requirements due to a tax treaty. The United States has income tax treaties with a number of foreign countries. Under these treaties, residents of those countries are exempt from U.S. taxes on certain types of income from sources within the United States. There are different eligibility criteria, as well as different dollar limits, and some length of stay restraints with each treaty. Consult IRS Publication 901 for further details.

REQUIRED FORM(S)

 

  • Creighton University Tax Treaty Affidavit
  • IRS Form 8233
PROCESSING STEPS

 

To enable Creighton to determine if an exclusion exists under a tax treaty, nonresident alien employees will be asked to complete a Creighton University Tax Treaty Affidavit and IRS Form 8233. These forms must be completed each calendar year that a person is eligible to take advantage of the treaty benefits. A copy of each of these forms must be filed with the IRS.

Prior to receipt in the Payroll Office of the forms, taxes will be withheld from an employee's pay. The employee can receive a refund via the tax filing process at the end of the calendar year if applicable.