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Hiring International Employees
Jon A. Ahlberg – International OfficeJulie Rodriguez – International Office
Sally Moss – Payroll and Tax Compliance LynnAnn Brewer – Human Resources
Debbie Jones – Payroll and Tax ComplianceCarmelita Mendoza – Payroll and Tax Compliance
International Students
Julie Rodriguez, CoordinatorInternational Office
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An international student is a student who is enrolled in a U.S. academic program and has a nonimmigrant status. Some common non-immigrant statuses are A-1, A-2, E-1, E-2, F-1, H-1, H-4, J-1, J-2, L-1, L-2, M-1, R-1 and TD.
F-1 is the most common status used by international students at Texas State.
A student who has applied for or received permanent residency, refugee status or asylum in the U.S. is not considered to be an international student.
Who is an international student?
DHS: Department of Homeland Security - oversees federal agencies that manage the Student and Exchange Visitor Program, including:
U.S. Citizenship and Immigration Services (USCIS), U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP).
These three agencies were formerly INS (Immigration and Naturalization Service) until March 1, 2003
DOS: Department of State - oversees various federal bureaus that play a role in implementing student visa and exchange visitor programs
SEVIS: Student & Exchange Visitor Information System (since 2003) – Federal database, holds all F-1, M-1 and J-1 non-immigrant records.
DSO: Designated School Official – Individuals at Texas State who are authorized by DHS to access and manage F-1 Student SEVIS records. 4
Basic Information & Terms
Fall 2013Total International Students: 405
F Visa 349 Other Visa 56
International students at Texas State
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0.49 0.24 0.49
86.1
0.491.97 7.65
0.98 0.24 0.980.24
A2B1E2F1F2H1H4J1J2L2TD
Student Statistics at Texas State University
F1/J1 students can engage in on-campus employment
Limited to part-time (20 hrs max) during fall and spring
Full-time during summer, winter, and spring breaks if not taking classes. If taking classes during the breaks, 25 hrs/wk & follow university policy.
International StudentsOn-Campus Employment
E-mail the International Office for approval. Faculty Records Website: A “New Hire” PCR for
an international student must have an approval from the International Office electronically attached. Also, if a student is to be enrolled in less than nine graduate hours there must be an approval from the International Office. These approvals must be attached to the electronic PCR prior to approval by the Office of the Graduate College.
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PCR Approval Procedures for Hiring GA
Provide a job employment letter for the international student that meets the Social Security Office requirements.
Information given to hiring entity by the International Office:Note to hiring office, department, or program: The content and format of the letter on the following page were dictated by the Social Security Office in San Marcos. Based on your letter, our office will generate a second letter.
The student will take both letters to the San Marcos Social Security Office to apply for an SSN and be issued an application receipt. Note that these letters are not accepted at Social Security Offices outside of San Marcos. It may take a week or two for the SSN to be generated and the card mailed to the student. However, after presenting all hiring paperwork to the Payroll Office, including the application receipt provided by the Social Security Office, the student will be allowed to start work. The contact person in the Office of Payroll & Tax Compliance is Sally Moss, [email protected] or 245-8310.
What on-campus employers should do
(Must be on Texas State University letterhead)
[Date]
Texas State University International Office:
The [office/department/program] of Texas State University, has hired international student, [name], for the position of [ ], beginning [exact date -- not just the semester]. The student’s immediate supervisor, [name], can be contacted by phone at [ ] or by email at [ ]. Please issue the student a letter to present to the Social Security Office to apply for a Social Security number.
Sincerely,
[supervisor or administrative staff person]
www.international.txstate.edu
Job Offer Letter Template Form
1) Secure a job offer letter from the on-campus employer.
2) Request a proof-of-enrollment letter from the International Office. Student should submit the request along with the job offer.
3) Request a SSN through the Social Security Office.
What the student should do
How long does it take the International Office (IO) to issue the proof-of-enrollment letter?In most cases the IO can issue the letter on the spot.
How soon after they apply for the SSN can the student start working?They can start working as soon as they give Sally Moss at the Payroll and Tax Compliance their application receipt from the SS Office.
Who can sign the job offer letter?Your Administrative Assistant or any other full-time staff in your office or department can sign the job offer letter needed for the SSN.
For more information visit our website at www.international.txstate.edu
Student Employment - Q & A
Contact Information International Office Thornton International House Phone: 512-245-7966 Email: [email protected] or
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J-1 Exchange VisitorsJon A. Ahlberg, Associate Director
&Julie Rodriguez, Coordinator
International Office
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J-1 Exchange Visitor Program
The J-1 Exchange Visitor Program is an excellent way for departments to invite international scholars to come to Texas State to teach, study, or conduct research. It is especially useful for positions such as post-doctoral researcher or visiting lecturer and professor. Cannot be used for a tenure-track or tenured faculty position.Cannot be used for a staff position.
The U.S. Department of State administers the Exchange Visitor Program to promote mutual understanding between the people of the United States and other countries by means of educational and cultural exchange. The program provides international scholars opportunities to participate in exchange programs in the U.S. with the expectation that on completion of their exchange program, they will return home to share their experiences.
J-1 Exchange Visitor Program Cont’d
Before inviting or hiring an international scholar, sponsors must first contact Faculty Records to secure an appointed position at Texas State. (http://www.provost.txstate.edu/pps/policy-and-procedure-statements/7-personnel-employ-comp/pps7-22.html)
By securing an authorized position, the international scholar will be able to enjoy on-campus privileges at Texas State such as office space, use of the library, computer labs, parking, etc.
In addition, sponsors are responsible for assisting with arrangements such as housing and transportation when inviting international visitors from abroad. Please plan accordingly.
After a position has been approved by Faculty Records, the sponsoring individual or department should contact the International Office to assist with the immigration paperwork process.
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J-1 Exchange Visitor Program Cont’d
The immigration paperwork process involves six parties:1) The Department of State (DOS)2) The Department of Homeland Security (DHS)3) Texas International Education Consortium (TIEC)4) The Texas State International Office5) J-1 Program Sponsors = Texas State departments and
professors6) J-1 Exchange Visitors (EV) = the invited scholar J-2 Dependent(s) (EV), if anyScholars may be paid by Texas State or self-funded,
whether it be personal, institutional, or governmental. The minimum funding requirement is $1200 per month.
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J-1 Exchange Visitor Program Cont’d
Texas State works with an organization in Austin called TIEC Texas International Education Consortium which is authorized by the State Department to administer the J-1 Exchange Visitor program. The International Office acts as the liaison between TIEC and Texas State sponsoring departments and professors.
TIEC charges a fee of $295 to provide this service. This is a one-time fee and may be paid by the sponsor or the Exchange Visitor. TIEC, which is a vendor in SAP, will forward an invoice to the sponsoring department or they can bill the EV who may pay by check, money order, or credit card.
In-house processing time can take from 2 -4 weeks after all required paperwork has been submitted to the IO.
However, it can take from 1 - 2 months for the Exchange Visitor to apply for and receive their J-1 visa from a U.S. consulate.
Categories of Exchange VisitorsThere are 10 categories of J-1 Exchange Visitor however TIEC is authorized to accept the academic categories of Professor, Research Scholar, and Short-term Scholar. Professor - primary activity teaching; may also do research
Research Scholar - primary activity research; may also teach
These categories may have lengths from three weeks to five years
Short-term Scholar - activities can be teaching and/or research The maximum stay for this category is 6 months and is ideal for a repeat program that may occur once per year for several years.
Two-Year Home-Country Residency Requirement - Some EVs must remain in their home country for a minimum of 2 years before beginning a new J-1 program; waivers are possible, but limited.
J-1 Exchange Visitor Program CostsRelated Estimated Costs
TIEC processing fee $295(can be paid by the Sponsor or EV)
F, M, J SEVIS fee $180(paid by the EV online by credit card to DHS)
Nonimmigrant visa application processing fee $140(paid by the EV to DOS when applying for J-1 visa)
Nonimmigrant visa issuance fee based on reciprocity(paid by the EV to DOS when applying for J-1 visa) See http://travel.state.gov/visa/fees/fees_3272.html
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J-1 Exchange Visitor Program Requirements
To be eligible to participate in the J-1 Exchange Visitor program in the U.S., EVs are required by law to obtain and maintain appropriate medical insurance throughout the duration of their program.
If the EV is benefits eligible at Texas State, he or she will only need to purchase riders for medical evacuation and repatriation insurance. Information about these insurance requirements may be obtained at the International Office.
Willful failure on part of the EV to maintain the required insurance throughout their stay in the U.S. will result in the termination of his or her exchange program.
One year bar - If the EV was in the U.S. in J status for over 6 months the EV must return to the home country for at least one year before beginning a new J-1 program.
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What the department should do
It is recommended that this process begin at least three months before the anticipated arrival of your J-1 Exchange Visitor to the U.S.1) Obtain a position for your prospective EV from Faculty Records.2) Contact the International Office to request processing
documents.3) Communicate with your prospective EV and obtain required
information and documents from them.4) Prepare and return all required forms (signed) and attachments
to the International Office.5) Upon receipt of all of the documents, the International Office will
forward them to TIEC. TIEC will issue a DS-2019 which is a form that will be used by your EV to apply for their J-1 Exchange Visitor visa. TIEC usually processes the DS-2019 within one to two weeks.
6) Pick up the DS-2019 from the International Office upon arrival and send (FedEx or UPS is recommended) it to your EV, or you can request that TIEC FedEx it directly to the EV and bill you or the EV.
Documents required to process immigration
paperworkSubmitted by the sponsoring department to the International Office:1. A completed and signed TIEC J-1 Exchange Visitor Information
Sheet (this form will be provided in email);2. A copy of an invitation letter from the sponsoring department
addressed to the scholar (a template will be provided);3. Proof of funding or financial support in which the total amount
of funds available (minimum $1200 a month) must be stated as:
- A letter of support from the scholar’s financial sponsor such as the Texas State invitation letter, U.S. government, home government, or an international organization, and/or
- A bank statement or a letter from the scholar’s financial institution
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Documents required to process immigration paperwork cont’d4. Documentation of the scholar's English proficiency (example
given)5. A copy of the scholar’s passport biometrics (identification
page) to include: name, picture, expiration date and any extension page(s)
6. The scholar's curriculum vitae (CV) or résumé7. Copies of previous DS-2019s for J-1/J-2 status issued by any
other U.S. institutions; (Only applicable if the scholar has previously been in the U.S. in Exchange Visitor status)
Dependents of J-1 Exchange Visitors (J-2 Dependent)If the EV will be accompanied by a dependent then page 2 of the TIEC J-1 Exchange Visitor Information Sheet must be completed, and copies of their passport biometrics pages and proof of financial support for an additional $500 per month per dependent must be provided.
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What the prospective J-1 Exchange Visitor should do
1. Communicate with the sponsoring department and provide all necessary documents and information.
2. Upon receipt of the DS-2019 and accompanying documents from the sponsoring department, follow the instructions regarding payment of the F, M, J SEVIS fee and for applying for a J-1 visa at a U.S. consulate.
3. Arrive at Texas State no later than 30 days of the program start date as indicated on the DS-2019. Important: Notify the International Office immediately if the EV cannot arrive within 30 days of the program start date. TIEC will have to amend the EV’s DS-2019 by deferring the start date and issuing a revised DS-2019, which has to be mailed to the EV.
What the J-1 Exchange Visitor should do after
arrival4. Upon arrival in the U.S., make an appointment with the International Office for the mandatory orientation.
At the mandatory orientation appointment:-provide all DS-2019s, passports, and other immigration docs-provide proof of medical insurance for self and any dependents-provide local home address, phone number and email address5. Maintain the required insurance throughout the program6. Only work in and for the sponsoring department(s) that requested your DS-2019 and invited you to Texas
State or other institutions listed on the DS-2019.7. Leave the U.S. no later than 30 days after the program end
date on your DS-2019.
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J1 Exchange Visitor – Q & A
Contact Information
International Office Thornton International House Phone: 512-245-7966 Email: [email protected] or
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Legal Employment AuthorizationJon Ahlberg, Associate Director
&Jennifer Mendez, Administrative Assistant III
International Office
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Legal Employment Authorization
The International Office contributes to the research and teaching mission of the university by assisting with the process of obtaining legal employment authorization for distinguished international faculty and staff.
Before hiring an international employee, the sponsoring department must have an authorized appointed position from Faculty Records.
After an appointed position has been approved by Faculty Records, the department should contact the International Office to assist with the immigration paperwork process.
Hiring of International employees is governed by U.S. immigration law and Texas State policy.
Determining the Right Typeof Employment Authorization
There are several types of employment authorization for international employees in the U.S. The three most common visa classifications at Texas State are J-1 Exchange Visitor, H-1B Temporary Worker, and TN Trade NAFTA Professional.
Departments should always contact the International Office to help assess the appropriate employment authorization to pursue when hiring international employees for any position.
The International Office will assist in obtaining the proper documents for the employees' visa application and entry to the U.S. or for a change of nonimmigrant status if they are already in the U.S.
The International Office works in collaboration with a board certified immigration law firm for H-1B employment authorization. Neither the international employee nor an immigration attorney acting on behalf of the employee or department can file these petitions for Texas State employment.
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Most Common Hiring Scenarios"We're hiring for a tenured or tenure-track position”H-1B; Can be TN or OPT at beginning but must change to H-1B"We're hiring for a grant-funded post-doc research position” J-1 or TN recommended; Can be H-1B if salary is sufficient"We're inviting an international scholar for an unpaid position”Only J-1 can be unpaid"We're inviting an international scholar to lecture and we’d like to pay an honorarium and/or reimburse their expenses“B-1/B-2 or Visa Waiver for under 9 days; J-1 for longer stay
H-1B Temporary WorkerThe H-1B Temporary Worker is a nonimmigrant visa classification
used by international employees who will be employed temporarily in a “specialty occupation.” A specialty occupation requires theoretical and practical application of a body of specialized knowledge along with at least a bachelor’s degree or its equivalent.
H-1B employment authorization is used for permanent positions like a newly hired tenured or tenure-track Assistant Professor. It is the appropriate status for future processing for Permanent Residency.
H-1B authorization requires a sponsoring employer (Texas State) and is processed through two federal agencies, the Department of Labor (DOL) and US Citizenship and Immigration Services (USCIS)
H-1B employees may only work for the petitioning U.S. employer and only in the H-1B activities described in the petition.
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H-1B Temporary Worker cont’d
Departments must work in close consultation with Faculty Records, the International Office, and the law firm before finalizing salary and terms of contract with a prospective international employee because there is a salary requirement to meet the “prevailing wage” which is determined by the DOL.
The prevailing wage condition requires employers to demonstrate that the wage offered to the international employee is not below the actual wages paid to similarly employed U.S. workers. This is done by submitting a Prevailing Wage Request to the DOL. The law requires employers to pay the higher of the either the actual wage or the prevailing wage.
An international employee can be in H-1B status for a maximum period of six years.
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Requirements and Responsibilities
The employer must file a Labor Condition Application (LCA) with the DOL attesting to certain conditions which are: The employer will pay the higher of either the actual wage
offered or the prevailing wage as determined by DOL; The employee is eligible for the same benefits as other
similarly employed US workers; The employee is not being employed because US workers
are out on strike or lockout; The employment of the international worker will not
adversely affect the working conditions of other workers; That proper notification was given to the employer’s U.S.
employees (This requirement is met by a posting a notice, which will be provided by the International Office, at the hiring department and HR for 10 business days)
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How much does it cost and how long does the process take?
The government filing fee for H-1B authorization from USCIS is $825 and it is paid by the hiring departments. The legal fee of $1750 that is charged by the law firm contracted with Texas State is paid by the Provost Office.
Internal processing time for submission of H-1B petitions is usually 3 or more weeks once all documents have been received by the International Office.
USCIS adjudication time ranges 2 - 6 months so hiring departments should submit documents 3 to 6 months before the anticipated start of an H-1B employment.
For an additional $1225 filing fee, USCIS will expedite the adjudication within 15 days. This “Premium Processing” can be requested at the initial submission of the petition or at any time thereafter if necessary. The Department pays this filing fee and the Provost Office pays the legal fee.
Departments are responsible for additional fees related to additional services requested outside the realm of a normal H-1B processing.
The university system contract does not cover fees for applications by employees’ dependents, and all such costs must be paid by the employee.
When must wages to the H-1B employee begin and for how long?
Start dates of employment are very important. Do not use the faculty contract start date of September 1 because new employees must attend orientation and actually begin work before that date.
In the case of an H-1B non-immigrant for whom a petition has been approved but who has not yet begun employment, the employer's obligation to pay the required wage begins no later than thirty days after the worker is admitted to the U.S. in H-1B status, or sixty days after the person becomes eligible to work for the employer if he or she is already present in the U.S. at the time of petition approval.
The employer is required by law to pay the stated salary to the employee until the end of the H-1B authorization.
If the employee is dismissed from employment before the end of the period of authorized stay, the employer is liable for the reasonable costs of return transportation of the employee abroad.
H-1B: What the department does
First secure an authorized position with Faculty Records Contact the International Office to help assess your
prospective international employees situation You will receive an email with instructions and Employer
Questionnaire Complete Employer Questionnaire (signed by hiring authority) Provide copy of appointment letter Initiate the PO/payment process by creating a framework
“limit” purchase order with a limit of $2,050 in SAP. Send the PO number, permission to use the PO information, and the authority to approve the invoice for your account (up to the PO amount) to the International Office once it is received. Any excess funds (i.e. invoice amount is less than the PO amount) will be returned to the department’s account once the PO is closed.
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TN Trade NAFTA Professional
NAFTA is the North American Free Trade Agreement. It creates special economic and trade relationships for the U.S., Canada and Mexico.
The TN visa allows citizens of Canada and Mexico to work in the U.S. The maximum period is three years. Extensions are for one year at a
time. There is no limit on the number of years a TN visa holder can stay in the U.S. but the TN visa status is not for permanent residence.
Position requires a NAFTA profession which is on the NAFTA list and Canadian or Mexican citizen has the qualifications of the profession
Employer must provide an employment letter with specific details of the position, qualifications, salary, etc. to employee. The International Office can provide guidance on crafting this letter.
No cost to employer if employee is outside the U.S., however employee must pay visa or entry fees from $50 - $200
Legal Employment AuthorizationQ & A
Contact Information
International Office Thornton International House Phone: 245-7966 Email: [email protected] or
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Hiring and Payroll Process
Sally MossPayroll Services Assistant
Payroll and Tax Compliance
Hiring Process of an International Employee W-4 information Purpose of Payroll and Tax Compliance Documents needed SSN requirement Contact information
Topics to be Covered
All International employees need to be sent to Payroll and Tax Compliance to meet with Sally Moss
All employees need to have either a SSN or a receipt from the SS Office showing that they have applied for one before they are allowed to start working
Hiring Process
Do not include a W-4 form in the employment packet◦ Correct W-4 forms will be processed for the
employee once they have met with Sally Moss in the Payroll and Tax Compliance office A W-4 form can’t be completed until individual has a
SSN Some International employees have specific W-4
forms to sign
W-4 Information
Determine correct tax status Collect copies of documents Collect Foreign National Information Form Enter information into The International Tax
Navigator which will print their W-4 and any other tax documents that may apply to that individual
Purpose of Payroll and Tax Compliance
Foreign National Information Form I-94 (card in passport which has the date of entry
into the U.S. stamped on it along with Visa classification or copy printed from U.S. Customs & Border Protection website, www.cbp.gov/I94)
U.S. Visa (if applicable) I-20, DS-2019 or I-797 Passport page with expiration date of passport Receipt from Social Security Office showing
individual has applied for SSN (only if person doesn’t have a SSN)
Documents needed
Determination that the employee is authorized for employment ◦ Hiring department will need to give the employee a Job Offer letter ◦ The employee will take this letter to the International Office if they
are a student and will need to pick up a proof of enrollment letter. If not a student then they would not need to go to the International Office
◦ The employee will go to the SSA office to apply for SSN and will obtain receipt of application which needs to be taken to Sally Moss in Payroll and Tax Compliance before they start working
SSN REQUIREMENT
Contact Information
Sally Moss Payroll Services Assistant 601 University Drive, JCK 516 Phone: 245-8310 Email: [email protected] Payroll and Tax Compliance Website:
http://www.txstate.edu/payroll/
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I-9 Form Guide
How to Complete the I-9Employment Verification Form
LynnAnn BrewerHuman Resources
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What Do I Need to Know?
USCIS Employer Video Why employers must verify Employment
Authorization and Identity of new employees? Employee Rights Acceptable Documents for Verifying
Employment
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USCIS I-9 Video: Form I-9 Employment Eligibility Verification – Section Two
Immigration Reform and Control Act 1986
Immigration Act 1990
Illegal Immigration Reform and Immigrant Responsibility Act 1996
Homeland Security Act 2002
July 8, 2013 54
Why employers must verify Employment Authorization and Identity of new employees?
Employers must treat employees in a non-discriminatory manner
when recruiting, hiring, firing, and verifying their identity and
authorization to work on Form I-9.
Employer MAY NOT: Demand that specific documents because of national origin, ethnicity, immigration or citizenship
status, race, color, religion, age, gender or disability, or because of any other protected characteristic. For example, your employer may not:
Request a document issued by the Department of Homeland Security because a person is not a U.S. citizen.
Require U.S. passports from new employees who “sound foreign” and claim U.S. citizenship. Refuse to accept document or refuse to hire because of an unfounded suspicion that your document
is fraudulent. For example, Employer may not refuse to accept U.S. passport because a person have limited English proficiency.
Treat a person differently than other applicants because the employer believes that a person is, a U.S. citizen or noncitizen.
Ask to see a person’s employment authorization documents before he or she hires a candidate or before a candidate complete Form I-9.
Refuse to accept document or refuse to hire because document expires in the future. Limit jobs to U.S. citizens unless U.S. citizenship is required by law or government contract. Demand a specific document when re-verifying that a person is authorized to work. A person may
present any document either from List A or from List C to demonstrate that they are still authorized to work.
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Employee Rights
The form is 9 pages long and takes 15 minutes to complete. New employee must receive the complete form which includes all the instructions and list of acceptable documents.
6 pages of instructions 2 pages of the form 1 page of list of acceptable documents
July 8, 2013 56
I-9 Form
3 business
days from the first day of work
for pay. Employer Section II
1 First day of
work for pay. Employee Section I
You may not begin the Form I-9 process until you offer an individual a job
and he or she has accepted the offer.
Employees may complete the form at any time
between acceptance of a job offer and the first day
of work.
DEADLINES
July 8, 2013
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Completing Section 1
The new employee must complete Form I-9 in person to verify, identify and provide original supporting documents.
Supporting documents should be copied and handed back to the employee. Attach the copies to the I-9
Don’t tell or suggest what documents the employee should present.
A new employee who has applied for a Social Security number but not yet received it should write “Applied For” in the box intended for the number. When the employee receives the number, Human Resources will cross out “Applied For”, insert the number, and initial and date the change.
Leave no blanks and complete all fields
July, 2, 2008 59
Completing Section 1
July 2, 2008 60
Completing Section 2
July 8, 2013 61
Completing the Form I-9 for F-1 Visa Holders
In Section 2, List A field of the Form I-9, you should list the following information:
Document Title – enter “unexpired foreign passport” Issuing Authority – enter the foreign government that
issued the passport and expiration date Document Number – I-94 or I-94A number Expiration Date – the date on the passport and is usually
listed on the personal profile page but extensions may be recorded on other pages
Document Number – I-20 number Expiration Date – the date or notation listed on form I-20
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Details
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Acceptable Documents for Verifying Employment Authorization and Identity
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Acceptable Documents for Verifying Employment Authorization and Identity
The I-9 Form is required by law to be completed by the 1st day of employment and documents be reviewed by the 3rd day
The employee completes Section 1 and the 6 fields
The employer completes Section 2 and the 3 fields
All field must be completed for the form to be valid
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Key Highlights
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Questions?
http://www.hr.txstate.edu/HiringManager/NewFormI9.html
Office of Special Counsel (Dept. of Justice): http://www.usdoj.gov/crt/osc/index.html
July 2, 2008 67
I-9 Resources
Contact Information
LynnAnn Brewer Employment Manager 601 University Drive, JCK 340 Phone: 245-6583 Email: [email protected]
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Tax Issues for NRA Foreign Visitors
Debbie JonesDirector
Payroll and Tax Compliance
Carmelita MendozaAccountant III
Payroll and Tax Compliance
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Honorarium and/or Travel:
Honorarium rules B1/B2, VWB/VWT (Visa Waiver for Business or Tourist) or similar visa,
is required. Visa waiver countries don’t issue a visa, so a passport is sufficient.
Visitor may only perform services at Texas State for 9 or less days. Must only have received payment from 5 other universities within a 6
month prior period.
J1 sponsored by another university Texas State must receive permission in writing from the sponsoring
institution’s Responsible Officer in order for the visitor to be paid. The Responsible Officer is listed on the visitor’s J1 DS-2019.
Travel Foreign scholars may be paid or reimbursed for travel without tax if
we have travel receipts as backup. The Travel Office at Texas State handles all travel applications, approvals and payments. Travel reimbursements for visitors traveling to or from outside of the U.S. require Presidential approval. Please allow sufficient time for this approval.
Prizes - A contest prize may be paid under the honorarium rules.
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Types of Payments to NRA foreign visitors who visit Texas State for less than 9 days
1. Contact the Payroll and Tax Compliance office ([email protected] )
a. Foreign National Information form (FS-05) available at http://www.txstate.edu/payroll/taxspec/forms/contentParagraph/018/document/Foreign_Natl_Info_Form_FS05%20101613.docx
Request the foreign visitor to complete and return the FS-05, to Payroll and Tax Compliance. This helps determine:
1. The country of citizenship and the visa status of the visitor.2. Whether or not they have a social security or taxpayer
number.3. Whether or not permission from a sponsor is required for
payment.
b. Advise – Payroll and Tax Compliance will advise the department whether tax withholding is required, and whether a meeting with the foreign visitor is required to complete paperwork. A copy of the visitor’s visa and passport are necessary when the visitor arrives on campus.
2. Send Letter of Invitation to foreign visitor and copy to Payroll and Tax Compliance.
3. Assist with Obtaining Correct Visa: Contact the International Office if needed.
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Steps to Take
4. Travel Application and Travel Reimbursement for Non-Employees: If paying travel, you must contact the Travel Office to complete a travel application and submit the Travel Reimbursement for Non-Employees. Travel to and from a foreign country must be approved by the President and is a required part of the travel application process.
5. Vendor Maintenance Form (Form FS-01) – completed by Foreign Visitor and submitted directly to the FI Master Data Center
6. Contracted Services Payment Voucher(Form FS-03) – completed by department and sent to Procurement and Strategic Sourcing.
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Steps to Take (Continued)
Example 1 –
The Journalism Department at Texas State invited a film student, Mr. Montero, from Chile, to present his documentary at the Texas State Foreign Documentary Festival. He visited Texas State for 5 days with a B1/B2 visa to present his film, and won first prize - $1,000.
1. Foreign National Information Form and Vendor Maintenance form – These forms were completed by Mr. Montero and sent to the university per instructions on the form.
2. Contracted Services Payment Voucher – Once approved for honorarium payment by Payroll and Tax Compliance, this form should be completed by the department and sent to Procurement and Strategic Sourcing.
3. No tax treaty – Payroll and Tax Compliance determined that there is no U.S. tax treaty with Chile, therefore 30% withholding from the prize was required. The department asked for a copy of his visa and passport and sent to Payroll and Tax Compliance, so a meeting was not required.
4. 1042-S tax form - Mr. Montero received a 1042-S form at the end of the year showing $1000 in income, with $300 tax withheld. He can file a U.S. tax return (1040-NR or 1040-NR-EZ) to potentially recover withheld tax.
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Example of honorarium payment to a foreign visitor
Example 2 –
The Music Department invited a violinist, Ms. Halle, from Berlin to participate in a music festival at Texas State. They offered to pay travel as well as honorarium.
1. Foreign National Information Form and Vendor Maintenance form – These forms were completed by Ms. Halle and sent to the university per instructions on the form.
2. Travel Application and Travel Reimbursement Form for Non-Employees – Since travel was paid separately, the department completed a travel application through the Travel Office and obtained approval from the President, then submitted a Travel Reimbursement form for Non-employees with attached receipts to the Travel Office.
3. Contracted Services Payment Voucher –was sent to Procurement and Strategic Sourcing for payment of the honorarium.
4. No taxpayer number, no tax treaty – Since Ms. Halle did not have a taxpayer number, she was not eligible to apply for the tax treaty. 30% withholding was withheld from the honorarium, but not the travel. A 1042-S form was sent to Ms. Halle in January. She can apply for a tax number and tax treaty exemption when she files her tax return.
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Example of honorarium and travel paid on behalf of a foreign visitor
Example 3 – The English Department at Texas State invited a distinguished speaker, Ms. Habish from Egypt to present a lecture at Texas State. Ms. Habish is a J1 Fulbright Scholar-In-Residence at another U.S. university. She visited Texas State for 3 days with a J1 visa, and was paid $500.
1. Foreign National Information Form, Vendor Maintenance form and DS-2019 – The department sent the Vendor Maintenance form and FNIF form to Ms. Habish and requested a copy of her DS-2019. Ms. Habish completed the forms and sent them and the DS-2019 to the university per instructions on the forms.
2. DS-2019 form – Payroll and Tax Compliance approved payment of honorarium, and also received permission in writing from the Responsible Officer listed on the DS-2019.
3. IRS Form 8233 - Ms. Habish met with Payroll and Tax Compliance to apply for a tax treaty exemption. Since, she already has a social security number, she is eligible to apply for the exemption. After the required 10 day waiting period, payment was made to Ms. Habish without tax withholding.
4. Contracted Services Payment Voucher – Completed by the department to pay Ms. Habish, and sent to Procurement and Strategic Sourcing.
5. 1042-S tax form – Ms. Habish received a 1042-S form at the end of the year. She should file a U.S. tax return (1040-NR or 1040-NR-EZ).
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Example of honorarium payment to a J1 scholar visiting from another university.
Non-taxable vs. taxable travel:
1. Travel must be for university business purposes and must benefit the university.
2. Travel reimbursements or direct billed travel are not taxable if receipts are turned in with the Travel Reimbursement Form for Non-Employees. The receipts must match or exceed the amount paid.
3. Without travel receipts or direct billed travel, the university will treat the payment as an honorarium and tax accordingly.
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Accountable plan travel reimbursements
Gross Up Pay for Tax Withholding
If the university department wants to pay the withholding tax for the foreign visitor, the net to pay is “grossed-up” to include withholding tax. The grossed-up amount is calculated as follows:
Net to pay ÷ (1.0 - tax%) = Grossed up amount
Example:
You want to pay someone net $3,000, and you want to include withholding tax:
With 30% tax withholding:
$3,000 ÷ 70% = $4,286 (This is an expensive option, so plan to have correct forms in advance of visit)
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Contact Information
Carmelita Mendoza, Accountant III ([email protected])
Debbie W. Jones, Director ([email protected])
601 University Drive, JCK 582 Payroll and Tax Compliance Phone: 245-2543 Email: [email protected]
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