Integrated Service Center

Foreign Nationals Payment & Tax Information

Learn about wage payments and taxes for Foreign Nationals and how to make changes in Workday.

Ensure that your Citizenship Status under Personal Information in Workday is accurate, so you receive proper tax forms.

Table of Contents

Definitions

A Foreign National is a person who is not a citizen of the United States or a permanent resident alien. The UW welcomes Foreign Nationals.

For tax purposes, a Foreign National is generally a F-1 full-time student who has been in the US for less than five calendar years, or a J-1 teacher/researcher who has been in the US for two calendar years or less out of the last six calendar years.

For immigration purposes, a Foreign National is a person who is not a citizen or permanent resident of the US who has been admitted on a visa for a temporary stay that will end when the purpose of that stay has been met.

Glossary of terms pertaining to UW Global Operations Support

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Getting Started in Glacier Tax Compliance

Glacier Tax Compliance is a secure, web-based application used by the UW to determine the correct taxation on wages for foreign national employees.

Note: Glacier Tax Compliance is not to be confused with Glacier Tax Prep, which is a separate application used for filing tax returns.

Failure to complete Glacier Tax Compliance information and provide documents to the ISC Payroll Office may result in inaccurate tax withholding and/or loss of tax treaty benefits.

US naturalized citizens and permanent residents should NOT complete Glacier Tax Compliance.
If residency status has changed to U.S. Citizen or Permanent resident, please complete a new Form I-9 in Workday to update the immigration status. Additionally, email pr-tax@uw.edu so we can update your citizenship status in Workday.

For Employees

Once you have been hired to work and entered as an employee in Workday, you will receive an invitation to set up your UW Glacier Tax Compliance account.

Information that a Foreign National must provide in Glacier Tax Compliance includes:

  • Visa start and end dates
  • Passport page with visa stamp
  • Country of residence
  • Country of citizenship
  • U.S. address
  • Foreign address
  • Social Security number or ITIN

Based on this information, the UW is able to determine if the individual:

  • Is eligible for any tax treaties
  • Has passed a substantial presence test
  • Has become an alien resident for U.S. tax purposes
  • Is exempt from FICA taxes (Social Security/Medicare) based on USCIS NRA rules

Instructions

1. Open the email sent to you by Glacier; the From: address of that message is support@online-tax.net. This is not a spam email. The email will instruct you on how to access Glacier Tax Compliance, submit your information, and provide a temporary login and password. You may change your login and password at this time.

2. After logging into Glacier Tax Compliance, you will type in your answers to a series of questions. The Glacier Training Guide for Employees is available to help fill in the answers.

3. After completing your Glacier entry, print (please print single sided) and sign all reports generated and photocopy the documents listed on the Glacier Tax Summary Report. Bring the paperwork and copies of your visa documents to the Integrated Service Center (location and business hours). Paperwork can also be sent through UW Campus Mail and addressed to:

ISC Payroll Office
Campus Box 359555
Attention: Glacier Administrator

Tax Treaties

A tax treaty is negotiated between the United States and a foreign country. The purpose is to reduce double taxation on residents of the particular country.

Tax treaty information is available in the following publications:

  • IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
  • IRS Publication 901, Tax Treaties

A Social Security number is required for wage reporting to the IRS.

A Social Security number or ITIN is required to claim tax treaty benefits.

Wage Payments Eligible for Tax Treaty Benefits

Glacier will create IRS Form 8233 and the tax treaty article.

IRS Form 8233 must be renewed each calendar year.

The current list of wage tax treaties is available in IRS Publication 901. Carefully read chart for required criteria specified in tables and all footnotes.

Canada Income Tax Treaty

Publication 597 provides information on the income tax treaty between the United States and Canada. It discusses a number of treaty provisions that often apply to U.S. citizens or residents who may be liable for Canadian tax. Treaty provisions are generally reciprocal (the same rules apply to both treaty countries). Therefore, a Canadian resident who receives income from the United States may refer to this publication to see if a treaty provision may affect the tax to be paid to the United States.

Eligible for Scholarship/Fellowship tax treaty

Glacier will create IRS Form W-8BEN Beneficial Owner's Certificate of Foreign Status for U.S. Tax Withholding.

IRS Form W-8BEN must be renewed each calendar year. IRS Form W-8BEN for claiming tax treaty exemption (SSN or ITIN required).

If receiving both wage and scholarship/fellowship payments then IRS Form 8233 can cover both tax treaties and IRS Form W-8EN is not needed.

The current list of Scholarship/Fellowship tax treaties is available in IRS Publication 901. Carefully read chart for required criteria specified in tables and all footnotes.

Not eligible or not claiming Scholarship/Fellowship tax treaty

Scholarship/Fellowship payments are subject to 14% Federal withholding tax.

If Payroll determines that foreign national is not eligible:

  • Payroll takes no action and the foreign individual is not notified directly.
  • If the foreign national does not agree, the only recourse is to file a claim with the IRS on their personal tax return.

Failure to supply the required documentation may result in incorrect taxation.

If you do not have an SSN or ITIN

If you are receiving payments through UW Payroll, you must apply for a Social Security number (SSN) as soon as possible. An SSN will allow you to participate in any tax treaty benefits, and ensure that any taxes reported to the IRS are associated with the correct person. If you are not able to receive an SSN, you must apply for an Individual Taxpayer Identification number (ITIN). Details on the SSN/ITIN application process are available at the International Student Services website.

Note: Glacier will not advise you of tax treaty eligibility or generate any tax treaty forms until you enter your SSN into your Glacier record. Do not postpone your Glacier entry during the SSN application process.

Getting help

The following support resources are available:

  • For general help with Glacier Tax Compliance:
    Select the “online help” icon in the lower right section of most Glacier Tax Compliance screens.
  • For general help with Glacier Tax Compliance, or help answering specific questions in the software:
    Email the Glacier Tax Compliance support team at support@online-tax.net. (Response may take up to 2 business days).
  • For questions about tax information appearing on a UW paycheck:
    Email the ISC Payroll Office at pr-tax@uw.edu, with the subject line "Glacier Tax Compliance help."

Resources


For Administrators

Overview

Glacier Tax Compliance will create a tax summary page showing the tax determination, and will populate the appropriate tax forms to be submitted to the ISC Payroll team. Examples of these forms are the 8233, W-8Ben, and W-4 Federal Tax Withholding.

Instructions

1. Enter the Foreign National employee into Glacier Tax Compliance after the hire is complete in Workday. Be sure to enter the Employee ID number on the information screen.

2. After the entry is complete, an invitation email will be sent to the employee from support@online-tax.net; the email will include their Glacier login and password.

Note: Glacier Administrators will not receive the invitation email.

Obtaining Administrator access to Glacier

Due to the sensitive information in Glacier Tax Compliance, the ISC Payroll Office provides access to only one Administrator per department. Exceptions may be made on a case-by-case basis.

Training is required before administrator access can be provided. To arrange training, contact ischelp@uw.edu with the subject line “Glacier Admin Training Request.” Include your name, department, and if you will be replacing the current Glacier Tax Compliance Administrator. The ISC Payroll Tax and Accounting team will set up a 30-45 minute training with you.

Contact ischelp@uw.edu for questions or assistance.

Resources

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Work Authorization & Extending Work Authorization

Federal law requires that all new employees fill out USCIS Form I-9 Employment Eligibility Verification to document that they are authorized to work in the United States. It is unlawful for the University to knowingly employ a Foreign National not authorized to work in the United States.

Similarly, the University can only make payments to Foreign Nationals who are legally authorized to be in the United States. It is critical that your scholarship and fellowship payments are taxed appropriately.

Information on the Form I-9

Employment Eligibility Verification is a required form for wage payments; it is not required for scholarship and fellowship payments.

Documents that prove Work Authorization include:

  • Form I-20 for F-1 visa holder
  • Form DS-2019 for J-1 visa holder
  • Form I-797C Notice of Action or Form I-94 with stamp for H-1B visa holder
  • Form I-94 for TN visa holder
  • Employment Authorization Card

Information on document requirements

Completing Form I-9 in Workday 

You file your Form I-9 in Workday.

Follow these steps:

  1. Employee completes Name and Social Security Number in Section 1.
  2. Employee presents documentation to department's Form I-9 Coordinator.
  3. Department's Form I-9 Coordinator completes Section 2 of Form I-9.
  4. Employee completes Section 3 of Form I-9 according to visa type:
  5. Leave the Social Security number (SSN) box blank if your SSN is not available at the time of hire.

Instructions on completing Form I-9

Extending Work Authorization

Work Authorization documents have expiration dates. USCIS rules require employers to re-verify Work Authorization on USCIS Form I-9 Employment Eligibility Verification.

These rules also apply to extending Foreign Nationals' authorization to receive scholarships and fellowships. It is critical that your scholarship and fellowship payments are taxed appropriately.

Advance notice will be provided to you as the process for reviewing or extending dates of employment eligibility can be a lengthy one.

You and your department will receive notifications prior to expiration of your Work Authorization.

You are responsible for initiating the renewal process. Contact International Student Services Office (ISS) or International Scholars Office (ISO) to get started.

Then bring your renewal documents to your department's Form I-9 Coordinator.

Your department is responsible for verifying your new Work Authorization documents in Workday. Follow these steps:

  1. You complete Name and Social Security Number in Section 1 of Form I-9.
  2. You present documentation to your department's Form I-9 Coordinator.
  3. Your department's Form I-9 Coordinator completes Section 3 of Form I-9.
  4. Employee completes Section 3 of Form I-9 according to visa type:

Special rules may apply to the H-1B visa allowing you to work for an additional 240 days from the expiration date of your current Work Authorization if your Work Authorization extension application is pending.

If this exception applies to you, make sure to include a copy of the Form I-797C Notice of Action when submitting your I-9 in Workday.

E-Verify for OPT/STEM Extensions

The University of Washington participates in the E-Verify process.

Only employees who are paid from a federal contract or grant with an E-Verify clause are required to go through the E-Verify process.

The UW Payroll E-Verify account number is 293411. Use this number on OPT/STEM extension forms.

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Federal Withholding Taxes & Tax Treaties

The University of Washington is a withholding agent for the Internal Revenue Service (IRS) and is required to withhold mandated taxes.

All employee wages are taxable unless specifically exempt from tax by a US law or a treaty.

Scholarships and fellowships paid to a Foreign National from a US source are taxable unless specifically exempt from tax by a US law or a treaty.

Tax Treaties

A tax treaty is negotiated between the United States and a foreign country. The purpose is to reduce double taxation on residents of the other country.

A list of current wage tax treaties is available in IRS Publication 901 .

Foreign Nationals should review the IRS Publications in link below and make an initial assessment of their tax treaty eligibility.

IRS Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities

To Note

Social Security number (SSN) or Individual Tax Identification Number (ITIN) is required for wage reporting to the IRS and to claim tax treaty benefits.

If the you are eligible for a tax treaty benefit, Glacier will generate an IRS Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual and an IRS Form W-4 Withholding Allowance Certificate.

IRS Form 8233 must be renewed each calendar year through Glacier.

If the ISC determines that you are eligible for a wage tax treaty exemption:

  • A refund will not be made for any Federal Withholding Tax previously withheld during the current calendar year.
  • Upon receipt from Glacier of a completed Form 8233 and the Treaty Attachment, Federal Withholding Tax will not be taken out of future paychecks until the tax treaty exemption dollar limit is reached.

Failure to supply the required documentation may result in incorrect taxation.

Canada Income Tax Treaty

IRS Publication 597 provides information on the income tax treaty between the United States and Canada, including provisions that often apply to US citizens or residents who may be liable for Canadian tax.

Treaty provisions are generally reciprocal; the same rules apply to both treaty countries. Therefore, a Canadian resident who receives income from the United States may refer to this publication to see if a treaty provision may affects tax they pay to the United States.

Foreign Nationals Not Eligible or Not Claiming Wage Tax Treaty

You are required to complete IRS Form W-4 Employee’s Withholding Allowance Certificate. This must be submitted in Workday. A Social Security number is required. Special rules apply to nonresident aliens for tax purposes when completing IRS Form W-4.

Instructions for Nonresidents completing the IRS Form W-4

Withholding will default to single and one allowance if you do not complete an IRS Form W-4.

Foreign National Scholarship and Fellowship Recipients

If you are eligible for a Scholarship or Fellowship tax treaty, complete IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals).

A Social Security number (SSN) or Individual Tax Identification Number (ITIN) is required.

IRS Form W-8BEN is valid for three calendar years and must be renewed through Glacier.

A list of current Scholarship and Fellowship tax treaties is available in IRS Publication 901.

If you are eligible for a tax treaty benefit, Glacier will generate the required forms.

Scholarship and Fellowship payments are subject to 14% Federal withholding tax if there is no tax treaty exemption.

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OASDI (Social Security & Medicare) Taxes

In general, United States OASDI (Social Security and Medicare) taxes apply to payments of wages for services performed as an employee in the US, regardless of the citizenship or residence of either the employee or the employer.

Exemptions to OASDI

Determination of an exemption from OASDI is based on the calendar year (January-December) you enter the United States. The calendar year may only be a partial year. For example, if you entered the United States on December 31, 2016, 2016 counts as your first calendar year.

Students on F-1 or J-1 visas are exempt from OASDI taxes for the first 5 calendar years.

Scholars (non-students) on J-1 visas are exempt from OASDI taxes for the first 2 calendar years.

Students and scholars on J-2, H-1, E3, and TN visas are required to pay OASDI taxes.

Social Security Number and Individual Taxpayer Identification Number

IRS regulations mandate that Foreign Nationals must have either a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN) in order to receive any tax treaty benefits.

If a foreign national is receiving wages, you must apply for a Social Security number with the Social Security Administration.

If a foreign national is receiving Scholarship or Fellowship payments, but not wages, you may apply for an Individual Taxpayer Identification Number.

When you receive your Social Security Number:

  •  Present your Social Security Card to your department. Your department will update the information in Workday.
  • If you are a Foreign National student, you are also required to present your Social Security Card to the Registration Office, 225 Schmitz Hall, for updating in the Student database.

Failure to notify your department and the Registration Office may result in incorrect taxation.

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Foreign Nationals Working Outside the US

Payments made to a Foreign National who performs services outside of the United States are not subject to Federal Withholding Tax, or OASDI (Social Security and Medicare) taxes. Nor is there any US reporting obligation.

If this circumstance applies to you, complete the UW Certificate of Foreign Status and provide proof of citizenship and residency (i.e., a copy of picture page of your passport).

Instructions on completing the UW Certificate of Foreign Status

You department must submit a confirmation letter stating that all services will be performed outside of the US.

Sample confirmation letter

Your department should forward to the ISC:

  1. Completed UW Certificate of Foreign Status
  2. Proof of your citizenship
  3. Confirmation letter

Scanned copies of documents are acceptable.

UW Foreign National employees who live and work outside of the United States will not receive any United States tax forms.

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Year-End Information for Foreign Nationals

 Annual IRS Reporting

For tax purposes, all Foreign Nationals are required to fill out Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition.

Resources and information on annual IRS reporting requirements are available through the International Student Services Office (ISS).

Nonresident alien students and scholars use Glacier Nonresident Tax Compliance System to file their individual tax return with the IRS.

Annual Forms Requiring Renewal

IRS Form 8233 and Tax Treaty Attachment for tax exemption on wages are generated through Glacier. These forms must be renewed every year.

IRS Form W-8BEN for tax exemption on Scholarship/Fellowship/Stipend payments is also generated through Glacier and is valid for three years.

University of Washington employees cannot provide personal, legal, or tax advice.

Documents Filing Requirements

For instructions on how to fill out IRS forms, refer to the appropriate table below.

Employee
Type W-2 1042-S
US Citizen or Immigrant
(more info)
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1, H-1B, TN, O-1, E-3, EAD

Instructions
Wages over tax treaty limits ($ or time)

Instructions
Wages over tax treaty limits ($ or time)

Foreign National Resident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1, H-1B, TN, O-1, E-3, EAD

Instructions
Wages over tax treaty limits ($ or time)

Undergraduate Student
Type 1042-S 1098-T
US Citizen or Immigrant
(more info)
Visa Types: F-1, J-1
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1

Instructions
Wages under tax treaty limits ($ or time)

Foreign National Resident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1
Instructions
Graduate Student/Doctoral Candidate
Type 1042-S 1098-T
US Citizen or Immigrant
(more info)
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1
Instructions
Wages under tax treaty limits ($ or time)
Foreign National Resident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1
Instructions
Retiree
Type 1042-S 1099-R
US Citizen or Immigrant
(more info)
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1, H-1B, TN, O-1, E-3, EAD

Instructions
Wages under tax treaty limits ($ or time)

Foreign National Resident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1, H-1B, TN, O-1, E-3, EAD
Instructions
Non-UW Student Scholarship/Fellowship Recipient
Type 1042-S Stipend Letter
US Citizen or Immigrant
(more info)
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: F-1, J-1
Instructions
Foreign National Resident Alien for Tax Purposes
(more info)

Instructions

Independent Contractor
Type 1042-S 1099-Misc
US Citizen or Immigrant
(more info)
Instructions
Foreign National Nonresident Alien for Tax Purposes
(more info)
Visa Types: B-1, VWB, B-2, VWT, F-1, J-1, H-1B, TN, O-1, E-3, EAD
Instructions
Foreign National Resident Alien for Tax Purposes
(more info)
Visa Types: B-1, VWB, B-2, VWT, F-1, J-1, H-1B, TN, O-1, E-3, EAD
Instructions
Resources

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