Human Resources Campus Information Session

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Human ResourcesCampus Information Session

• Thursday, December 4, 2003
• WELCOME

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AGENDA

• Taxation Laws for International Faculty, Staff,
  and Students
• Paying Foreign Internationals Through Accounts
  Payable
• Overview of the H-1B Immigration Process for
  Hiring International Faculty and Staff
• I-9 Documentation for International Faculty,
  Staff, and Students

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Purpose

• Southeast Missouri State University is required
  to comply with U.S. Federal Tax Law when making
  payments to or on behalf of foreign nationals.
• We must provide guidance to the Universitys
  departments regarding the special documentation
  and processing requirements governing employment
  and payments to foreign nationals.

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Taxation Laws For Foreign Internationals

• Presented by
• Jori Hammond

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Keeping Track Windstar Technologies, Inc.

• International Tax navigator determines tax
  status, analyzes tax treaties, determines
  applicable tax rates and exemptions,
  automatically prepares completed Forms 8233,
  W-8BEN, W-4, and W-9 for withholding exemptions,
  and Form 1042 and 1042-S reporting.
• The Form 1042-S Processing System, included with
  the Tax Navigator, may be licensed separately by
  payers with Form 1042 tax return and 1042-S
  information reporting requirements for payments
  not processed by the Tax Navigator.

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Definitions

• What is an Alien?
• Foreign nationals who are not United States
  citizens are referred to as aliens.
• IRS distinguishes between two types
• Resident Alien
• Non-Resident Alien

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Documentation Requirements

• Common Visas
• at
• Southeast Missouri State University

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Types of Common Visas

• B1 (Business purpose)
• F1 (Students Full)
• F1 (Practical Training)
• J1 (Student Graduate)
• J1 (Practical Training)
• J1 (Professor/Research)

• H-1B (Temporary Worker)
• TN (Canadian/Mexican)
• O-1 (Extraordinary Ability)

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Permanent Resident Documentation Requirements

• Work/Payment
• No restrictions treated as U.S. Citizen
• Must have U.S. Social Security Number

• Documentation
• Foreign National Form
• I-551 Card (Permanent Resident Card)
• Valid I-551 Stamp

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H-1B Temporary WorkerDocumentation Requirements

• Employment permitted only by the sponsoring
  institution that obtained visa classification
  (Southeast).

• Social Security Card
• Foreign National Form
• IRS I-94 Card
• Form I-797A (Notice of Action
• US Visa (Passport)

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F-1 StudentDocumentation Requirements

• Must maintain full time enrollment
• Must have U.S. Social Security number
• Maximum of 20 hours per week
• Sponsoring institution must be Southeast Missouri
  State University

• Foreign National Form
• Front and Back copy of IRS 1-94 card (Departure
  Record)
• Copy of US Visa (Passport)
• I-20 Form (Certificate of Eligibility for
  Student Status

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F-1 Curricular Practical TrainingDocumentation
Requirements

• Employment required for completion of the
  students degree
• Must have U.S. Social Security number
• Requires approval of Sponsoring Institution on
  Form I-20
• Employment authorization is job-specific

• Foreign National Form
• Copy of I-94 Card
• Copy of US Visa (Passport)
• I-20 Form
• Requires prior approval of Sponsoring
  Institution.

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J-1 Exchange VisitorDocumentation Requirements

• Employment permitted only with the sponsoring
  institution
• Must have U.S. Social Security number
• If the sponsor is not Southeast, written
  permission must be obtained from the sponsoring
  institution

• Foreign National Form
• IRS-94 card
• US Visa (Passport)
• DS-2019 Form
• Written permission must be obtained from the
  sponsoring institution

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B-1 Visitor for Business

• Must have a U.S. Social Security number and/or
• Individual Taxpayer Identification number

• Foreign National Form
• W-8BEN form will need to be completed
• Visa and I-94 form

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TN (NAFTA) Citizens of Canada and
MexicoDocumentation Requirements

• Visa holder may perform professional services for
  a sponsoring employer in a specific position for
  a fixed period of time
• Must have U.S. Social Security number

• Citizen of Canada
• Foreign National Form
• IRS I-94 Card
• Citizen of Mexico
• UPP 192 Form
• IRS Form W-9
• IRS I-94 Card
• Copy of US Visa
• NS Form I-797 A

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Taxation forNonresident Aliens

• All employees must complete a W-4
• General W-4 Rules for Nonresident Aliens
• Regardless of martial status, coded as single
  with one (1) exemption
• Exception Canada, Mexico, Japan, India and
  Republic of Korea
• Cannot claim exempt withholding status
• Pay additional 15.30 (bi-weekly) federal taxes
  and 33.10 (monthly) federal taxes. (India does
  not have to pay additional federal taxes.)

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Taxation for Nonresident Aliens (continued)

• When a tax treaty exists between the United
  States and the nonresident aliens home country,
  there are exceptions to the exemption rule.
• There are limits to the amount of dollars taxed.
  For example
• If the nonresident aliens home county is Japan,
  the first 2,000 earned is exempt from taxes.
• For Canada the first 10,000 earned is exempt
  from taxes.

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Taxation for Nonresident Aliens (continued)

• Nonresident aliens admitted temporarily to the
  U.S. as foreign students and exchange visitors
  under an F1 and/or J1 visa are not subject to
  FICA taxes if the work performed conforms to the
  purposes for which they were admitted.
• Nonresident aliens who are in the United States
  on an H-1B, TN, or O-1 visa are subject to Social
  Security and Medicare as well as unemployment tax.

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Taxation for Resident Aliens

• All employees must complete a W-4.
• Subject to federal employment taxes the same as
  United States citizens.
• Subject to FICA and Medicare from the beginning
  of the year that they qualify as a resident
  alien.

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Paying International Speakers Through Accounts
Payable

• Submit the following to Accounts Payable two
  weeks prior to coming on campus
• Foreign National Form
• Social Security Card
• Copy of Visa and I-94 Form

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Contacts

• Student Financial Services
• Jamie Shaffar, extension 2042
• Human Resources
• Extension 2206
• Accounts Payable
• Yvonne Lee, extension 2072

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Hiring International Faculty and Staff

• Steps in Obtaining the H-1B
• Presented by
• Donna Spencer

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Step 1

• Notify Human Resources (HR) before making an
  offer of employment to a foreign national.
• HR will need to know what status the individual
  is presently in (H-1B, J-1, F-1, O-1 or TN).
• Send the internal request form to HR requesting
  change of status to H-1B.

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Step 2

• Apply for prevailing wage with the Missouri
  Department of Economic Development (DED).
• Once the prevailing wage is received, HR
  determines that the prevailing wage requirements
  have been met.
• Prevailing wage valid for 90 days.

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Step 3

• Labor Condition Application (LCA) is filed with
  the Department of Labor for certification.
• Can be filed electronically.
• Processing time immediate.

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Step 4

• Once LCA is approved, a copy is given to the
  employee and the hiring department.
• Notice of the LCA is required to be posted in two
  locations where the foreign national will be
  employed for 10 days.
• After the10 day posting, return the LCA to Donna
  Spencer in HR with signature and the location of
  the posting on the back.

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Step 5

• I-129 Petition is prepared along with supporting
  documents from foreign national.
• Letter of support needed from the department
  chair.
• 130.00 filing fee for the petition, paid by the
  hiring department. (Complete voucher send to
  Accounts Payable with documents.)
• If dependents are filing, an additional 140.00
  is required (paid by the foreign national.)

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Step 6

• The petition is received by USCIS (U.S.
  Citizenship and Immigration Services) and sends
  Southeast the receipt notice.
• The employee can begin working legally for 240
  days, while petition is being processed.
• Processing times for H-1B can take 3 to 5 months.
• Premium processing 1 week fee 1,000.00.

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Step 7

• H-1B Approval Notice Arrives.
• Once the petition has been approved, the Notice
  of Action (I-797 H-1B approval notice) will be
  mailed to HR.
• Original is given to the employee copy to file
  and I-9.
• Employer updates employees I-9.

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Applying for Permanent Residence

• H-1B visa valid for 3 years.
• Renewal for additional 3 years.
• Once the employee has accrued 6 years in H-1B
  status, they have to have applied for permanent
  residence or go back to their country.
• Can apply for H-1B extensions in 1 year
  increments while I-140 is pending.

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Permanent Residence

• Permanent Residence can take several years to be
  approved.
• The foreign national has to be sponsored by the
  University.
• Once approved for permanent residence, the
  foreign national becomes a citizen of the United
  States.

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Problems That Could Arise

• Two year home residency requirement.
• H-1B is institution-specific employee cannot
  transfer to Southeast without a new H-1B petition
  being filed.
• Prevailing wage requirement.
• If time limit of 6 years is exhausted, has to
  spend one year out of the country.

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I-9 Requirements

• Why Do We Need Identification?
• Presented by
• Pam Ladreiter

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Form I-9

• A result of the Immigration Reform and Control
  Act of 1986 (IRCA).
• Employers are required to complete an I-9 for
  every employee hired to verify they may legally
  work in the United States.
• Designed to verify identity and work
  authorization status.

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Important Points

• Only original documents are legally acceptable
• Time sensitive
• Section 1 Completed by the employee on/before
  the first day of employment
• Section 2 Completed by employer by the third day
  of employment.
• Section 3 Completed by employer by the
  expiration date of authorized employment.
  (Example I-94 has expired and extension has been
  approved.)

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Approved Documents List A

• List A Stand-Alone Documents
• U.S. Passport (unexpired or expired)
• Unexpired foreign passport, with I-551 stamp or
  attached copy of the I-94 indicating unexpired
  employment authorization.
• Alien Registration Receipt Card with photograph
  (INS Form I-551) - Green Card
• Unexpired Authorization Card (INS Form I-688A)

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Approved Documents List B and List C

• Drivers License
• Identification Card
• School ID card with photograph
• Voter Registration Card
• U.S. Military Card or Draft Card

• Social Security Card
• Birth Certificate (original or certified copy)
• U.S. Citizen ID Card
• (INS Form 197)

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Penalties For Noncompliance

• Form I-9 is a public inspection document
• Forms must be produced on-the-spot if audited
  by USCIS
• First offense 250 - 2,000 per unauthorized
  foreign national

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Thank You for Coming!

• Questions and Answers