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Date:June 13, 2006
Bulletin Number:645
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Subject

Nonresident Aliens (NRA) Who Have Reached Their Tax Treaty Limits

Purpose

To notify agencies of the Control-D report, NPAY741 (Aliens Who Have Reached Their Tax Treaty Limits).

Affected Employees

Nonresident aliens who have reached their tax treaty limit.

Effective Date(s)

Immediately.

OSC Actions

OSC will create the Control-D report NPAY 741 weekly.


Note: This report is available only in Reporting Tool Control-D.

Control-D Report

NPAY741 (Aliens Who Have Reached Their Tax Treaty Limits).

Agency Actions

Agencies must:

  • review the NPAY741 and
  • notify affected employees that wages earned over the treaty tax limit are subject to Federal, State and local taxes.

Note: PayServ will automatically start the Federal and State taxes. However, if the NRA is a resident of one of the five boroughs of New York City or the City of Yonkers, local taxes are required to be withheld.

Please follow these instructions to start local taxes in PayServ:

Compensate Employees > Maintain Payroll Data (US) > Use > Employee Tax Data > Federal Tax Data

  • Insert a new row
  • Enter effective date: (beginning of a pay period)
  • Special Tax Withholding Status:
  • Click radio button “None”
    Federal Withholding Status: Single 1
    FWT Additional Amount: $15.30
  • Select the State Tax Data page
    Under State Information: Check “Resident” box
    Under Special Tax Status: Click radio button “None”
    SWT Marital/Tax Status: Single
    Withholding Allowance: 1
  • Select the Local Tax Data page
    Under Locality :
    Click the look up tool and select the appropriate Locality
    Check “Resident” box
    Local Withholding Special Allowances – enter appropriate allowance
  • Save the page

 

Questions

Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.