Article Table Of Contents:
Introduction:
This article provides helpful guidance for Non-U.S. citizens who will be receiving payroll payments from the University of Maine System (UMS). For payroll purposes, Non-U.S. citizens are individuals working for the University who are not U.S. citizens.
A completed Sprintax Calculus profile is required all Non-U.S. citizen employees in accordance with UMS Administrative Practice Letter: Administrative Practice Letter III.d Payments to Noncitizens of the United States.
To meet federal requirements, UMS must ensure the correct federal and state taxes are withheld from payments to Non-U.S. citizen employees and must report those payments to the Internal Revenue Service (IRS).
To do this accurately and consistently, all Non-U.S. citizen employees are required to complete a Sprintax Calculus profile for each calendar year that they are working for the University and receiving wages through the UMS Payroll System.
If a Non-U.S. citizen employee is eligible for tax treaty benefits, they also must sign and submit a completed Form 8233 and Statement to Form 8233 through their Sprintax Calculus Profile.
Sprintax Calculus helps the UMS Payroll determine:
- Whether an employee is a Non-U.S. resident or resident for tax purposes
- If an employee qualifies for tax treaty benefits
- Which forms and documentation that is required for submission for an employee
- The correct payroll withholding for Non-U.S. citizen employees
A U.S. Social Security Number (SSN) is required for employment: A U.S. Social Security Number (SSN) is required for employment purposes. If the SSN is not provided in Sprintax Calculus or the form I-9, individuals will be required to upload proof that they have applied for a Social Security Number from their local Social Security Administration Office (an example of proof would be a copy of a SSA application receipt).
Once an employee receives their SSN, it must be updated in Sprintax Calculus immediately. If a SSN is not provided within 30 days, employees will be asked to stop working until the SSN is updated.
What Is Sprintax Calculus?
Sprintax Calculus is the University of Maine System’s required tax & residency-determination software for all Non-U.S. citizen employees.
- Sprintax Calculus determines:
- U.S. tax residency status (Non-U.S. resident vs resident for tax purposes)
- Eligibility for tax treaty benefits
- Required IRS forms ( Forms 8233, 1042-S, etc.)
- Whether you are exempt from FICA taxes
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Who needs to complete a Sprintax Calculus profile?
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You must complete a Sprintax profile if you:
- Are not a Non-U.S. citizen and Will receive payment from UMS for work performed (any job type)
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Who does not need to complete a Sprintax Calculus profile?
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Individuals who no longer perform services for the University and have previously completed their profiles for the tax year they received wages through UMS Payroll.
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Individuals who are permanent residents or naturalized citizens of the United States who have provided the University their I-551 Resident Alien Card number.
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How do I activate my Sprintax Calculus account?
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What is multi-factor authentication?
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To protect your identity and information, multi-factor authentication (MFA) is required in order to place a signature on your form.
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If you cannot access or log into your Sprintax Calculus Profile, please reach out to us Payroll at (payroll@maine.edu), we will reset your MFA and send you a reset link to your Maine.edu email address directly from Sprintax Calculus.
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Is there a cost for this service?
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What happens if I do not have a Social Security Number (SSN)?
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SSN is required for employment purposes. If you do not yet have your SSN, you must provide proof of application (A receipt from your local Social Security Administration Office uploaded into the Sprintax Calculus Document Exchange). Non-US citizens can apply online, and then go to a local Social Security office to provide your documentation. Once your application is approved, you should receive a Social Security card by mail within 14 days.
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Your SSN must be updated in Sprintax as soon as it’s received.
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If we do not receive a SSN or Receipt that you have applied within 30 days, you will be asked to stop working until an SSN is provided.
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What if I do not complete the Sprintax profile?
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What documentation is required?
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How can I file my individual income tax return?
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Your Sprintax Calculus account is different from your other Sprintax account that you may have for filing your individual income tax return to the Internal Revenue Service. You may, however, transfer your Sprintax Calculus information to your individual income tax preparation account.
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Where can I get assistance?
Visa/Status Information
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How are permanent residents different than nonresident aliens?
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Permanent residents (also referred to as lawful permanent residents) are taxed like US citizens; they are not exempt from Social Security and Medicare (FICA) taxes due to citizenship status (but may still be exempt based on the job type), and do not have a special tax withholding status. They do not have to complete a Sprintax Calculus account.
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How are asylees and refugees different than nonresident aliens?
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What is a resident alien?
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A resident alien is a non-U.S. citizen who meets the Green Card Test or Substantial Presence Test for the calendar year. Resident aliens are taxed the same as U.S. citizens and have the same forms, filing statuses, and deductions allowed to citizens. Regardless of visa status, if you pass the GCT or SPT, you are considered a resident alien. Resident aliens are subject to FICA taxes.
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What do OPT and CPT stand for?
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OPT stands for Optional Practical Training, and CPT stands for Curricular Practical Training. Both are extensions to F-1 visas that allow students to continue working for 1-2 years after their initial F-1 visa has expired. Employees on these extensions are still FICA exempt unless they have passed the SPT.
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What if a nonresident is hired by a UMS department to work in another country?
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At this time, UMS is not resourced to process global payroll. Therefore, if a department wishes to hire a non-U.S. citizen to perform work outside the U.S., they will need to coordinate with a third party company (i.e., Manpower) that can process global payroll to hire and pay this person. They will not be considered an employee of UMS and no hiring paperwork should be submitted to Payroll.
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Can nonresident spouses also work?
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What is a TN?
Taxation
- What is FICA?
- FICA stands for Federal Insurance Contributions Act and is a federal payroll tax that withholds Social Security and Medicare contributions from eligible employees' pay.
- F-1 and J-1 visas are FICA exempt under the following conditions per IRS guidelines Click here for link to guidelines:
- are employed in on-campus student employment up to 20 hours per week, or off-campus student employment as allowed by USCIS,
- are in practical training student employment on- or off-campus,
- are employed on-campus as a professor, teacher, or researcher.
- This exemption does not apply to spouses or children, unless they have their own F-1 or J-1 visa, and does not apply to those who change their nonimmigrant status to a non-exempt or special protected status, or those who become resident aliens for tax purposes.
- For other visa types exempt from FICA, Click here for link to other exemptions.
- What if someone is a dual citizen?
- Per IRS publication 519, a dual-resident taxpayer is a resident of both the U.S. and another country under each country's tax laws. A dual-status alien is someone who is both a resident alien and a nonresident alien in the same year.
- What can nonresidents claim on Form W-4?
- Sprintax Calculus will generate Form W-4 in compliance with the IRS.
- What if FICA taxes were withheld when they shouldn't have been?
- The employee should contact Payroll for reimbursement. If Payroll is unable to reimburse the employee, the employee can file a claim by completing IRS Form 843 to request a refund directly from the IRS when filing taxes.
- What if a nonresident needs help filing their taxes?
- They will need to contact an accountant or other tax professional; Payroll cannot provide tax advice.
- Note: if an employee is questioning the amount of taxes withheld, they should still contact Payroll.
- What documentation is required?
- Sprintax will list required documents automatically based on your profile data.
- Common documentation includes:
- Passport identification page
- Visa (if applicable)
- Most recent I-94
- DS-2019 or I-20
- Employment Authorization Document (if applicable)
- SSN or proof of SSN application
Payroll will review all documents before approving your profile.