Sunday, March 18, 2001
Track: HRMS Session: S2-6007

Panel Participants:
 Karen Banning, University of Kansas
 Dawna Groninger, University of Kansas
 Jennifer Gehrt, Kansas State University
 Linda Parker, Peoplesoft
 Gary Singer, Windstar Technologies, Inc.

University of Kansas Overview
One of the 7 Regent Institutions governed by State of Kansas
Comply with reporting of earnings for non-resident alien earnings – using State earnings codes, tax panel information reporting
Must maintain own time reporting, leave accrual and balance information using existing time reporting system
State of Kansas produces the 1042-S forms for KU employees
PeopleSoft V7.6 HRSA – No fixes applied

Student
Administration &
Foreign Addresses
When a student address is entered by SA as foreign –
Job Earns Distribution populated automatically
Default foreign address to
‘Home Address’ and we must manually override to local address
1042 Balances –
Earns/Taxes
The appropriate effective dates must be entered in Tax
Data panels in order for correct year to be updated.
Normally this is pay period begin date

Job Information – FICA Status Override

Available Earnings Codes for NRA’s
E a rn
Co d e
NJ4
NJ5
NO4
NO5
NP4
NP5
NPD
NPR
NR4
NR5
NS4
NS5
NV4
NV5
NA4
NA5
NB4
NB5
NC4
NC5
ND4
ND5
NE4
NE5
NF4
NF5
NH4
NH5
D e scr
Administrative Leave - NR4
Administrative Leave - NR5
Funeral Leave - NR4
Funeral Leave - NR5
Comp T ime T aken - NR4
Comp T ime T aken - NR5
Discretionary Day - NR4
Discretionary Day - NR5
Holiday Credit 1.0 - NR4
Holiday Credit 1.0 - NR5
Nonres Alien Fringe Ben-Cd 18
Nonres Alien Fringe Ben-Cd 19
Holiday Comp T ime T aken-NR4
Holiday Comp T ime T aken - NR5
Jury Duty Leave - NR4
Jury Duty Leave- NR5
Overtime 1.5 - NR4
Overtime 1.5 - NR5
Vacation Leave Payout - NR4
Vacation Leave Payout - NR5
Non Pay T SA Disability Rt
NonPay T SA Phased Rtrmnt
Nonresident Alien-Inc Code 18
Nonresident Alien-Inc Code 19
Sick Leave - NR4
Sick Leave - NR5
Vacation Leave - NR4
Vacation Leave - NR5
S ho rt D e sc
AdmLvNR4
AdmlLv-NR5
FunrlLvNR4
FunrlLvNR5
CMT -NR4
CMT - NR5
DiscDayNR4
DiscDayNR5
HolCrdNR4
HolCrdNR5
Nonres FBN
Nonres FBN
HolCompNR4
HolCompNR5
JuryLVNR4
JuryLvNR5
OvrtimeNR4
OvrtimeNR5
VLN-NR4
VLN-NR5
NonPayDis
NonPayRet
Nra-Ic 18
Nra-Ic 19
SickLvNR4
SickLvNR5
VacLvNR4
VacLvNR5

Employee Payline – with NR Earns Code – after first calc.

JPAY163 – 1042 Gross Report

JPAY164 – NRA’s reaching treaty max in pay period

JPAY310 – Mismatch earns codes on multiple employee rec’ds

 Fall 2000 Enrollment = 21,929
 Active Employees = 10,000+
 Non-Resident Aliens = 1009
 1042 forms in 2000 = 504

 Use delivered PS HRMS 7.51 Education &
Government NRA functionality with all relevant PS fixes applied
 Use 1042 processing for payroll only--not scholarships and fellowships
 Do not have PS Student Administration
 Follow same basic rules and processes as the
University of Kansas

K-State’s Solutions to Problems with NRA
Processes

 We do not automate Employee Tax Data on
Installation Table-- we always manually enter data in Tax Data

 Train users to not insert foreign address in “Home Address”

Use local address in the “Home
Address”
 Use permanent foreign address in the
“Mailing Address”, if desired

 Will receive warning message when tabbing out of Country field on Federal Tax Data 3 panel -- that’s okay

 Tracking accurate Visa data is critical
 Confusing panel for employee who has had more than one Visa type
 Not effective-dated--Visa displays alphabetically, not employee’s current Visa
 Tricky reporting
 Fixed in PS 8?

 Added a Save Error Edit to State Tax
Data requiring “Resident” checkbox to be ‘No’

 Employee Tax Audit Reports (SQRs) vs multiple on-line edits
 Run audit reports beginning last day of pay period through day of final oncycle pay calc

 Fed Tax Special Status = NRA without NRA
Earnings code in JOB_EARNS_DIST record
 NRA Earnings Code without Fed Tax Special
Withholding Status = NRA
 Multiple active Employment Records and
Earning Codes in each JOB_EARNS_DIST record are not equal
 Dept ID in JOB is not equal to Dept ID in
JOB_EARNS_DIST

 Employee with Visa Type = J2 and FICA
Status = Exempt and enrolled in < 6 credit hours
 Employee with Visa Type that requires
Subject to FICA
 Employee with Visa Type = J2 not eligible for Tax Treaty

 Fed Tax Data--NRA requires additional withholding = $15.30

NRA with Citizenship Status = ‘Alien
Permanent’ is Subject to FICA

 Watch for custom SQRs that update JOB in batch--must also update the
JOB_EARNS_DIST record at same time

 J1/F1 Visas should always be exempt from FICA and SUT (unless
Substantial Presence Test is met)
 When FICA Exempt, SUT must be
Exempt
 When FICA Subject, SUT must be
Nonexempt

 PeopleSoft re-delivers tax treaty table with each major release and with each application update
 Interim changes must be tracked and applied in your system

 Tax Treaty and NRA information available on our web site: http://www.ksu.edu/hr/infomgmt/treatysu m.htm
 IRS Tax Treaty Information is simplified to include Income Codes 18 and 19, only

 We use manual worksheet to capture SPT calculations
 Enter data from worksheet in PS
SPT panel so data is readily available

SUBSTANTIAL PRESENCE TEST WORKSHEET
(The SPT is a 3-year test which is applied annually to determine resident status for Tax purposes)
Name:__________________________ EMPLID _______________________
Department:_____________________________ SSN________________________
Visa: __________ Job Title:_________________________________________
Arrival Date in US _______________ (Should be able to get off I-94). Will need this date to help you determine how long employee has been on F1 or J1 visa in order to determine the 6 th
or 3 rd
year for residency status.
Current Year
First Year
Second Year
Year Days of Presence x factor
1 x __________
1/3 x __________
Total Days per Year
1/6 x __________
Total Days: ____________________
Comments:
To meet SPT test, you must be physically present in the United States on at least:
1.
31 days during the current year, and
2.
183 days during the 3 year period that includes the current year and the 2 years immediately before that, counting: a.
All the days you were present in the current year, and b.
1/3 of the days you were present in the first year before the current year, and c.
1/6 of the days you were present in the second year before the current year.
Do not count any day you were present in the United States as an exempt individual . An exempt individual may be anyone in the following categories:
Normally J1 non-student holders are exempt for counting days for 2 calendar years. The third year you start counting days.
Normally J1, F1 student holders are exempt for counting days for 5 calendar years. The sixth year you start counting days

Substantial Presence Test
 Start Date = Arrival Date in USA
 Expiration Date = On-campus Work Permit
Expires

Substantial Presence Test
 PS 7.51 needs Arrival Date and Visa Issue Date on SPT panel--possibly there in PS 8

PeopleSoft/Windstar Partnership: Background
 Partnership formed in December 1999
 Objective: To complement PeopleSoft’s nonresident alien taxation processing capabilities with the case-by-case tax treaty analysis capabilities in
Windstar’s Tax Navigator
 Windstar is developing a two-way interface between PeopleSoft Payroll and Windstar Tax
Navigator

PeopleSoft/Windstar Partnership: Overview
PeopleSoft Payroll
Windstar Tax Navigator
Captures employee data
Employee Data Captures immigration history data
Payroll Processing
(including Tax Calculations based on Treaty Rules)
Tax Treaty Analysis
Results
Determines foreign national’s tax residency and performs tax treaty analyses
Prepares withholding and tax treaty exemption forms
Maintains Tax Balances
(including 1042)
1042 Tax Balances
Produces 1042-S reports Produces 1042-S reports

PeopleSoft Non-Resident Alien Taxation

PeopleSoft Non-Resident Alien Taxation

Before they enroll, you must get them here

Before you pay them, you must know their tax status

Information Required
•Demographics
•Family Information
•Immigration History back to 1/1/1985
•Prior Treaty Usage

Before they enroll, you must get them here
VisaManager

Before they enroll, you must get them here
VisaManager
•Forms for F, M, J, Q, H, L, O Immigration Statuses
•Forms for ongoing maintenance
•Full History
•Full Reporting Fulfillment

Before you pay them, you must know their tax status
International
Tax
Navigator

Before you pay them, you must know their tax status
International
Tax
Navigator
•Performs Full Substantial Presence Test on any Immigration History
•Performs Treaty Analyses
–One at a time
–Batch
–Looks forward or back
•Completes Forms for Withholding & Reporting

The Flow
VisaManager

The Flow
VisaManager
Transition
DB

The Flow
VisaManager
Transition
DB
International
Tax
Navigator

The Flow
VisaManager
Two Ways, too Transition
DB
International
Tax
Navigator

International
Tax VisaManager
Navigator
Transition
DB
What to Do
PeopleSoft
HR/
Payroll
Student
System
A.P.

The Big Picture – Coming Soon
I9
SS5
W7
New
Hires
International
Tax
Navigator
VisaManager
Foreign National
Information System
Web Based
FNIS
Transition
DB
FNIF
PeopleSoft
HR/
Payroll
Student
System
A.P.
Foreign National
Information Form
PDF Based