Non Resident Alien-Employee Tax Information Tab

[lbrackin]

We have several employees that have Non Resident Alien Status.  Under the employee tax information tab, there is a place to check 'Non-Resident Alien'.  By checking this box, more taxes are deducted.  Should I automatically check this for all that have NRA status?  What if they are considered a Resident Alien?  

Any advice will be helpful.

[Reshma]

Hi @lbrackin,

From the IRS: An alien is any individual who is not a U.S. citizen or U.S. national. A nonresident alien is an alien who has not passed the green card test or the substantial presence test. If you are a resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax the same way as a U.S. citizen. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year.

So, if they are a resident alien our recommendation is that they would be set up like any citizen as the taxes would be taken the same way.

You can find PowerSchool tables here.