Item 825 - Noncitizen Status Code

(PPT Line G Item)

This is a multi-purpose code used to identify employees who are not citizen of the United States. The components of the field are used for federal reporting, tax purposes and to monitor work authorization eligibility.

 

Coding:

On Line G enter: 825 / X-CCY-ZZZZ. Entered as eight alpha-numeric characters along with the dashes.

X = Immigration/Visa Category

CC = Tax Treaty Country

Y = Tax Residency Status

ZZZZ = Work Authorization Expiration Date

 

Coding values for X - Immigration/Visa category:

F - Student, primary visa holder (F-1)

J - Exchange Visitors, including students, scholars, teachers and researchers, primary visa holder, (J-1).

M - Vocational Student, primary visa holder, (M-1).

Q - International Cultural Exchange, primary visa holder (Q-1)

Z - All other visa types. Includes H-1B, TN, permanent residents and other appropriate immigrant and non-immigrant statuses.

 

Coding values for CC - tax treaty country:

Enter the code of the tax treaty country for all nonresident alien employees. Click here to view a list of country codes.

Enter OO (alpha O’s) as the country code for the following conditions:

  • Employee is a nonresident alien from a country that does not have a tax treaty agreement in effect with the US; or nonresident alien employee that does not want to exercise tax treaty benefits.

  • Employee is a resident alien.  Refer to Audit #6 below for additional information.

 

Coding values for Y - Tax Residency Status:

R - Resident alien. For tax purposes, is treated under the same provisions as those applicable to United States citizens. (Visa Type is Z.)

N - Nonresident alien. For tax purposes, is subject to graduated withholding rates unless otherwise exempted by a tax treaty qualification. (All visa types except Z.)

 

Coding values for ZZZZ - work authorization expiration date:

MMYY - Where MM is the month and YY is the year

0000 - Permanent Residents (numeric 0’s)

9999 - Duration of Stay or undetermined

 

Example:

Click to view examples.

 

Audits:

  1. If a noncitizen employee’s tax status changes from nonresident to permanent resident, update Item 825 (X-CCY-ZZZZ) from '00N' to '00R' and enter 4 numeric 0’s (0000) for work authorization expiration date.

  2. If the employee has a visa type of H (Code = Z), the work authorization expiration date is required.

  3. If a noncitizen becomes a United States citizen, process Transaction 825, and enter 'CITIZEN' in Item 215, and delete Item 825. If Academic Year (AY), then it must be effective beginning of AY pay period.

  4. Public Safety Officers must be either a United States citizen or a permanent resident noncitizen who is eligible for and has applied for United States Citizenship pursuant to Government Code Section 1031-1031.5.

  5. Employees present under a J-1 immigration status may be appointed on a temporary basis (e.g., A52 transaction).

  6. Generally, tax treaty exemption benefits are not applicable to employees deemed "resident alien" for tax purposes.  Note however, that under certain circumstances, tax treaty exemption benefits may be available to resident aliens.  Campuses should consult with their respective tax specialist for confirmation.

  7. If the employee has a F, J, M or Q type visa, and their tax residency status changes from nonresident to resident alien for tax purposes, process a Transaction 505 as follows:

    1. Item 825, Tax Residency Status: must be 'R'  

    2. Item 215: enter 'RESID TAX ALIEN'

    3. Item 505: must be 'TM', 'NM', 'NO', or '08' as appropriate.

  8. Pursuant to USCIS (Immigration) rules, for individuals present under an F1 or J1 immigration status, Item 825 Work Authorization End Date is taken from the date indicated on the I-20 (for F1) and DS-2019 (for J1), not the expiration date of the visa.     

 

More Info:

  1. For additional information on noncitizen employees, refer to Appointments Overview.

  2. For additional information on Item 825, refer to Technical Letter HR/EHDB 2001-01 on the Systemwide Human Resources web site.

  3. For additional information related to Nonresident Alien Tax Compliance Requirements, refer to Employee Policies and Programs on the Systemwide Human Resources web site.