Non-Resident Employees - Payroll Services - Carnegie Mellon University

Non-Resident Employees

Some of the more common questions from Non-Resident Employees and their answers are listed below. If you still have questions after reading through them please feel free to contact Payroll Services by email at payroll@andrew.cmu.edu or by calling (412) 268-2097.

TAX TREATIES DETERMINATION

What is FNIS? I thought the university used Windstar to determine tax treaties.
FNIS is the on line application of Windstar. It permits the foreign national to complete the information on line and submit it electronically.

Suppose I am from a country that has a tax treaty with the U.S. but I haven’t submitted my immigration information to Payroll Services?
A treaty exemption is not lost if you do not submit you information you can still claim the exemption when you complete your year end 1040NR tax filing.

How can I get more information on tax forms and treaties?
Visit the IRS website. IRS Publication 901 will provide more information on tax treaties.

I had Social Security and Medicare taxes withheld from my pay. I’m a foreign national shouldn’t I be exempt from these taxes?
Exemptions to Social Security and Medicare taxes are only extended after the foreign national information is submitted through Windstar.

What happens to the social security and medicare taxes I have already paid?
Payroll will refund the taxes to you after you complete the Windstar information. If the taxes were withheld in a prior quarter it may take a month for the refund to be generated.

I have completed my foreign national information and have signed the Form 8233 but I am still having PA state and PGH local taxes withheld. Why are you still withholding these taxes?
Neither the Commonwealth of Pennsylvania or the City of Pittsburgh participate in the treaty exemption program. However, the City of Pittsburgh does not require foreign nationals to pay the 2% school tax portion of the withholding tax. Only 1% City of Pittsburgh tax will be withheld from the foreign national’s pay.


TAXATION OF INCOME AND SCHOLARSHIPS

Is foreign source income taxed?
Only if you are a U.S. resident, non-residents do not pay taxes on foreign source income.

I have an appointment for the Fall at the Qatar Campus and I am not a taxing resident of the U.S. Will I have federal taxes withheld from my pay?
Once Payroll Services is provided your offer letter and your non resident taxing status is confirmed you will be sent a form to complete that will permit payroll to block any taxes from being withheld on the earnings in Qatar. No exemptions will be extended until the signed form is return to Payroll Services.


TAX FORMS AND ASSISTANCE

I keep hearing about year end taxing filing. Will I be required to do year end taxing filing?
If you have received payment for services in a calendar year you will be required to complete and file a form 1040NR by April 15th of the following year.

Will Payroll provide me with any information I will need to file my 1040NR?
Yes. Payroll Services will issue to you a W-2 reporting your wages and the taxes that were withheld on those wages, and a 1042S reporting income that has been exempted under a treaty agreement.

Will Payroll help me complete my year end tax forms?
No. Payroll does not provide tax preparation help. A tax workshop and hours of assistance are provided by the Office of International Education between March and April. Please contact the Office of International Education for more information and dates.