Limited Period Offer - Get Unlimited Access to 10k+ hours of content with myCPE Prime at $199Subscribe Now

Payroll Tax for Non-Resident F-1 & J-1 VISA Holders

  • Accountant
  • AFSP
  • CRTP
  • CPA (US)
  • EA
  • HRCI
  • ORTP
  • SHRM
  • Maryland Tax Preparer
  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description

Course Description

Payroll Taxes for Non-Resident Aliens is different than taxes for US Citizens. 

Many countries have tax treaties with the United States which allows Non-Resident aliens an exemption from either all or part of Federal tax withholdings. Different types of VISA Holders get certain exemptions from Federal Tax and FICA/Medicare tax. 

An F-1 VISA is specifically for Full-time Students who come to the US to study at an accredited college or university.  These students can also apply for Optional Practical Training (OPT) in their major field of study which allows them to remain in the US for an extended period after they have completed their studies. A J-1 VISA is similar to an F-1 VISA but is for Teachers and Researchers in a specific field of study for a specific amount of time.

The F-1 & J-1 VISA holders are both exempt from FICA/Medicare tax if they become employed for personal services while in the US.  They may also be exempt from Federal Tax withholding if their country has a Tax Treaty with the US. Some treaties exempt all wages from tax and others have specific dollar limits that can be earned before they are subject to taxes.

This CE/CPE Tax Webinar will go over what Employers need to know on how to treat these employees for payroll tax purposes. What forms do they need to complete to receive a tax treaty exemption and the specific forms that must be filed at the Year-End? Also what to do if there is not a tax treaty in their country?

Click here for more PDC/RCH webinars.

Major topics covered in this course:

I. Understanding the VISA and OPT  

  • F-1 VISA
  • OPT-Optional Practical Training
  • J-1 VISA
  • I-94

II. Federal Tax Treatment

  • FICA/Medicare and FUTA Exemption
  • Tax Treaty
  • Form 8233
  • Form W-4
  • Calculating Non-Resident Tax

III. Year-End Reporting

  • Form 1042-S
  • Form 1042 and 1042-T
  • Form 941

IV. Helpful Publications and Websites

  • Publication 15
  • Publication 15-T
  • Publication 515
  • Publication 519
  • Publication 901 

Learning Objectives

  • To discuss these F-1 & J-1 VISA.
  • To analyze what taxes they are exempt from and what to withhold.
  • To explain