Distribution of 1042-S

• Form 1042-S for active employees will be distributed with paychecks on Wednesday, March 10, 2010.
• Form 1042-S or separated, partial leave or inactive employees, will be mailed to the home mailing address. Check with Employee Self Service to confirm or update this address.

Form W-4 for non-resident aliens for tax purposes

• Complete a new Form W-4 for the year 2010 if your tax status has changed.
• IRS instructions for completing the W-4:
  • Do not claim exemption from income tax withholding
  • Request withholding as if you were single, regardless of your actual marital status
  • Claim only one allowance (if you are resident of Canada, Mexico, or Korea, you may claim more than one allowance)
  • Write "Non-resident Alien" or "NRA" above the dotted line on line 6 of the W-4
• If you have any questions, please contact the Payroll Office at pr-tax@u.washington.edu.

Social Security and Medicare taxes

• If you are or will be a resident for tax purposes during calendar year 2010 under the Internal Revenue Service's substantial presence test, you may be subject to Social Security and Medicare taxes. These taxes are applicable to all wage payments made by a U.S. employer to its employees unless an exception applies.
• You are exempt under Internal Revenue Code Section 3121(b)(19) if all three of the following conditions are met:
  • You are a non-resident alien for income tax purposes
  • You are in the U.S. under a F, J, M or Q visa
  • You are performing services in accordance with the primary purpose of the visa's issuance
• If you do not meet all three of the above tests for calendar year 2010, the University will withhold Social Security taxes (6.2% of taxable wages) and Medicare taxes (1.45% of taxable wages).
• If you have any questions, please contact the Payroll Office at pr-tax@u.washington.edu.

Exempt status on US Federal Income Taxes

• If you claimed exempt status on federal income tax withholding under a U.S. income tax treaty for 2009 and you are eligible to renew your claim for 2010, you must submit by February 16, 2010:
  • Form 8233, "Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Non-Resident Alien Individual"
  • U.S. income tax treaty article
• If these forms are not received, the University is required by law to withhold federal income taxes from your wages (at the maximum tax table rate of single, with zero withholding allowances).

Federal Income Tax withholding on stipend payments

• If you claimed exempt status on federal income tax withholding under a U.S. income tax treaty for 2009 and you are eligible to renew the claim for 2010, you must submit by February 16, 2010:
  • Form W-8BEN
  • Addendum and required supporting documentation
• If these forms are not received, the University of Washington is required by law to withhold federal income taxes from at the rate of 14% from your stipend.