Nonresident Alien Tax Tab

This tab is completed only if the payee is a nonresident alien and it is only editable by a member of the KFS-SYS Tax Manager role when the document has routed to them. The information on this tab is used for reporting purposes and to add any special tax withholding that might be required as a result of the income classification of the payment when the fields are completed and generate linesis clicked. If the transaction is taxable, this function automatically adds the appropriate tax related accounting lines to the Accounting Lines tab of the document, and reduces the total check amount if tax needs to be withheld.

Click Description: tinybutton-genlines to add the appropriate tax related accounting lines.

This following describes the definitions for the Nonresident Alien Tax tab.

Nonresident Alien Tax tab definitions:

Title

 

Description

Income Class Code

Required. Select the type of activity this disbursement is for, from the Income Class Code list. Values may vary, but some examples are:
Fellowships: Non-service related payments
Independent Contractor: Service related payment
Non-Reportable: Goods or 'accountable plan' travel
Royalties: Royalty, rights or permission payments

Federal Tax Percent

Optional. Enter the percentage of Federal tax that needs to be withheld from the payment or search for valid values for the federal tax percent (for a given income class code) in the Federal Tax Percent lookup Description: searchicon.

State Tax Percent

Optional. Enter the percentage of state tax that needs to be withheld from the payment or search for valid values for state tax percent (for a given income class code) in the State Tax Percent lookup Description: searchicon.

Country Code

Required unless Income Class Code is 'Non-Reportable' or if 'Treaty Exempt' or 'Foreign Source' is selected. Select the country of citizenship of the nonresident alien payee from the list.

Warning! This is not necessarily the country of residence.

Treaty Exempt

Optional. Select this check box if there is a tax treaty with the nonresident alien payee's country. Selecting this check box indicates that there is no tax withholding on the payment.

Foreign Source

Optional Select this check box if the payment is defined as foreign source based on U.S. income sourcing rules. Selecting this check box indicates that there is no tax withholding on the payment.

Gross Up

Optional. Select this check box if the payee is to receive the stated check amount regardless of any required tax withholding. Any taxes required to be withheld are calculated and added to the original amount of the disbursement voucher by charging an additional matching amount to the first account listed in the Accounting Lines section.

Reference Doc

Optional. Identifies a reference of a former payment. Used when processing a correction to a previous payment. Even when a tax rate is indicated, no tax withholding will occur.

More:

Wire Transfer Tab