Nonresident Alien Tax Tab

Financial Processing > Financial Processing Transaction Documents > Disbursement Voucher > Document Layout

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 Kuali Financials-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 lines is 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 Generate Lines to add the appropriate tax related accounting lines.

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

Nonresident Alien Tax tab field definitions

Title	Description
Country Code	Required if the Income Class entry is Fellowship or Independent Contractor.. No entry is allowed if the Income Class entry is Non-Reportable. The nonresident alien payee’s country of citizenship. Select the country from the list. The payee's country of citizenship is not necessarily the payee's country of residence.
Exempt Under Other Code	Optional. Used for various exemptions from tax withholding. Can be checked by itself or must be checked if an amount is present in the Special W-4 box or if USAID per Diem is checked.
Federal Tax Percent	Required if the Income Class entry is Fellowship or Independent Contractor. No entry is allowed if the Income Class entry is Non-Reportable. The percentage of federal tax to be withheld from the payment. Either enter the appropriate percentage for the income class or use the lookup icon to search for it. The default entry is 0.
Foreign Source	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. 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, except no entry is allowed if the Income Class entry is Non-Reportable. 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.
Income Class Code	Required. The type of activity this disbursement is for. Select the type of activity from the list. Values may vary, but some examples include: • Fellowships: Non-service related payments • Independent Contractor: Service related payment • Non-Reportable: Goods or accountable plan travel • Royalties: Royalty, rights or permission payments
NQI Id	Optional. This field is for reference only and is not validated
Reference Doc	Optional. However, no entry is allowed if the Income Class entry is Non-Reportable. 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.
Special W-4 Amount	Optional. To exempt a payment from tax withholding based on withholding allowance. Income code must be F- Fellowship with the federal and state tax rates set to 0 and Exempt under other Code checked. The amount of the exemption should be the amount of the payment. Special W-4 exempt payments to the same payee for a calendar year needs to be monitored to not exceed the annual withholding allowance.
State Tax Percent	Required if the Income Class entry is Fellowship or Independent Contractor. No entry is allowed if the Income Class entry is Non-Reportable. The percentage of state tax to be withheld from the payment. Either enter the appropriate percentage for the income class or use the lookup icon to search for it. The default entry is 0.
Treaty Exempt	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. 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.
USAID Per Diem	Optional. Check this box if the payee is receiving USAID per diem payments under a USAID grant. These payments are exempt from tax withholding but are taxable and reportable to the payee. Must select F – Fellowship, Federal and State tax rates of 0 and check box Exempt under other Code