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This article lists the frequently asked questions and answers related to payroll payments made to noncitizens of the United States. Noncitizens are individuals working for the University who are not citizens of the United States (U.S.). United States tax law requires the University to consider withholding federal and applicable state income taxes from all payments made to noncitizens of the U.S. and to report such information to the Internal Revenue Service (IRS).
All requests for payments to noncitizens for employment require that the noncitizen go through Sprintax Calculus to determine nonresident or resident status for employment tax purposes. Sprintax Calculus will determine eligibility for exemption of income from taxation through a tax treaty and will determine the appropriate IRS forms that need to be completed and signed by the noncitizen. Once the Sprintax Calculus process has been properly completed, the noncitizen will be eligible for payment.
A U.S. Social Security Number (SSN) is required for employment purposes. If the SSN is not provided in Sprintax Calculus, individuals will be required to upload a copy of their Application for a U.S Social Security Number. When the SSN is received, it must be updated in Sprintax Calculus. If a SSN is not provided within 30 days, employees will be asked to stop working until the SSN is updated.
Additional information can be found in Administrative Practice Letter III.d Payments to Noncitizens of the United States
Contents in this article:
Information
Sprintax Calculus
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What is Sprintax Calculus ?
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Sprintax's tax determination software (Sprintax Calculus) is an innovative, paper-free way to understand an individual's tax position and manage all of their tax-related documents. It's a secure, web-based, hassle-free tool which will help the University determine tax residency status, treaty eligibility and helps ensure correct withholding from payments.
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Who needs to complete a Sprintax Calculus profile?
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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.
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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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When you join the University as a non-US citizen, you will automatically be added to Sprintax Calculus. The system will send you an email with the subject line: “Welcome to Sprintax Calculus.” It will contain your personal log in and password information. Do NOT use the “Sign-Up” option on the Sprintax Calculus log in page. If you do not activate your account within 24 hours of receipt of this email, you can request a new activation link here and enter your email. This forgotten password activation link is also only valid for 24 hours; afterwards you will need to request another forgotten password activation link. After creating your password, follow the link on the “You have successfully set up your password” screen. On the middle screen, choose “University of Maine System”. After you've activated your University account, you may access your profile using this link.
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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. You may find instructions in the attached MFA Guide.
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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 (Form SS-5). 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 will receive a Social Security card by mail within 14 days. Your SSN must be updated in Sprintax as soon as it’s received.
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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.