Hiring and Paying International Students for On-Campus Employment

Hiring and Paying International Students

•Berkeley International Office •UC Berkeley Payroll Office•UC Berkeley Human Resources

I. International Students at BerkeleyII. Employment Eligibility & HiringIII. I-9 OverviewIV. Tax Determination for Foreign IndividualsV. Fellowships & ITINsVI. Social Security ProcessVII. Q&A

Agenda

Who are the International Students UC Berkeley?

An International Student…

Is NOT a U.S. citizen or Permanent Resident (“green-card” holder, immigrant) Obtains non-immigrant status (such as J-1, F-1, etc.) to enter and remain in

the U.S. legally. “Non immigrant” means that they will return to their residence abroad at the end of their stay and have no intention of immigrating to the U.S.

Has a classification (i.e. J-1, F-1, etc.) that matches the purpose of visit

People with other types of immigration status may be allowed to be students, but B-1/B-2 tourists, ESTA, and F-2 dependents are NOT.

International Student Growth

Fall 2013 Summary

5,645 international students from 120 different nations (not including students at Summer Session or UC Extension).

2,415 students on F and J visas attended Summer Session 2013

2,039 students began a new program of study in Fall 2013.

61.22% of all students were undergraduate level.

38.78% of all students were graduate level.

944 international students are currently on F-1 Optional Practical Training and J-1 Academic Training.

A DiplomaticB TouristE Treaty Trader/InvestorF StudentG International OrganizationH Temporary WorkerJ Research Scholar, Short-Term ScholarL Intra-company TransfereeR Religious WorkerTN NAFTA Treaty WorkerWB Visa Waiver, ESTA

Other Visa Categories

F-1 & J-1 Status Differences

Source: http://internationaloffice.berkeley.edu/students/new/fj_compared

J-1 F-1Must have substantial (51%) institutional financial support provided specifically for the educational program to obtain the initial document and to request any extensions of the DS-2019.

Must show financial support for the entire length of program when requesting the initial document.

Any source of financial support is acceptable.

Must show financial support for the first year of the program when requesting the initial document.

Any employment on- or off-campus requires a work permit from the program sponsor.

On-campus employment does not require a work permit.

Off-campus employment requires a work permit from Berkeley International Office and/or the Immigration Service.

Post-degree Academic Training (employment) is available for up to 18 months, but you must have a job offer prior to the end of end of studies. An extension for up to 18 months is possible for post-doctoral research. Off-campus work during the degree program reduces the total period of Academic Training available after program completion.

Post-degree Optional Practical Training employment permission is available for a 12-month period. An extension for 17 months is possible for certain STEM majors. A job offer is not required.

J-2 dependent (spouse, child) work permission is available. F-2 dependents (spouse, child) are not eligible for any work permit.

J-1 and J-2 dependents may be subject to the Two-Year Home Country Physical Presence Requirement

No Two-Year Home Country Physical Presence Requirement.

J-2 dependents are eligible to study part-time or full-time in the U.S. F-2 spouses are not eligible to study full-time in the U.S. F-2 spouses may engage in study that is merely avocational or recreational in nature. F-2 children in primary and secondary schools may be eligible to study part-time or full-time in the U.S.

F-1 students-On-Campus Employment -Optional Practical Training (OPT), off-campus-Curricular Practical Training (CPT), off-campus

J-1 students-On-Campus Employment-Academic Training (AT)

Types of Employment

Issue F-1 Students J-1 Students

On-Campus Employment Work Authorization Required No

Yes – position and department specific for both employment & fellowships

Can work during 30 days prior to program start date Yes

No – program start date can be changed by BIO for academic appointments

F-1 & J-1 Differences: On-Campus Employment

Employment Eligibility and Hiring

On campus is paid by UCB, or provides campus services by contract.

Work is limited to 20 hours/week during fall and spring semesters.

Summer break and official school breaks have no hour limits. I.e. students make work full time or 40 hours/week.

On campus employment ends when student completes final degree requirement for program or when I-20/DS-2019 expires.

On-Campus Employment Eligibility for F-1 & J-1 Students

Required immigration documents I-9 Form Patent agreement W4-NR UCRS 419 GLACIER Record Social Security Number

Hiring International Students for GSI/GSR

Required Documents for F-1 & J-1 Students for On Campus

F-1 Students Passport I-20 Paper I -94 card or

Electronic I-94 Record

J-1 Students Passport DS-2019 Paper I -94 card or

Electronic I-94 Record Site-specific employment or

fellowship authorization from J-1 sponsor

The I-94

All visitors will receive an “passport admission stamp” in their passports.

Your Proof of Legal Entry into the U.S.

Stamp in Passport Paper Form

Some students may receive the paper form I-94 noting status as F-1 or J-1 and “D/S”.

Paper I-94 forms do not have an electronic record. Only given via land travel.

Stamps are associated with electronic copy of the I-94 at www.cbp.gov/I94. Recommend students print upon arrival to U.S.

Changes to I-94 (Effective 05/2013)

Electronic I-94

International Student completes electronic request… …then prints this form

www.cbp.gov/i94

I-94 Admission Number Expiration of Status*

Sample I-94 for On-Campus Employment

Expiration of Status*

*D/S = Duration of Status

I-20 Expiration Date & work authorization end date

SEVIS IDDocument Number

Sample I-20 for F-1 On-Campus Employment

J-1 Sponsor Employment Authorization

J-1 Category= Student

Employment AuthorizationDate

Sample J-1 Student On-Campus Authorization

SEVIS Number

Authorization can be granted for 12 months at one time in SEVIS. Used for Fellowship/Employment Authorization & SSN

Department completes Employment/Fellowship section.

Send student to BIO for approval.

Sample BIO Employment Authorization

Two page document • Recommendation – Print 2 sided

Date of birth format – mm/dd/yyyy•Use format for all date entries

Social Security requirement Email address field – optional Telephone number – optional 3-D Barcode for future use

Section 1:Employee Informationand Attestation

Note: In other names field, if blank,employee writes “N/A”

http://www.uscis.gov/files/form/i-9.pdf 04/26/13

Section 1: Employee Information and Attestation

Example: I-94 Admission #

http://www.uscis.gov/files/form/i-9.pdf 04/26/13

69000888042

√ 12/31/2014

Record employee name Titles headings 3-D Barcode for future use

Expanded Certification section

• Complete all fields

• Be mindful of employment date and signature date

• Employers Organization Name

– University of California, Berkeley

Section 2: Employer or Authorized Representative

Review and Verification

http://www.uscis.gov/files/form/i-9.pdf 04/26/13

Section 2: Employer or Authorized Representative Review and Verification

http://www.uscis.gov/files/form/i-9.pdf 04/26/13

Record employees name in Section 1 Review document that establishes current employment authorization Complete block C If employee’s name has changed, complete block A Update HCM work authorization field Update HCM Visa information and Supporting Document field if applicable

Section 3: Reverification - Example

http://www.uscis.gov/files/form/i-9.pdf 04/26/13

http://www.uscis.gov/06/2013

HCM Visa/Permit Data

PageCenter Reporting ToolWeb-based tool to access month end reports provide by Central Payroll

PageCenter Report – Work Permit Expiration

Incorrect HCM Data - Effect

DownstreamEffect

Result • Blank Visa Type• Blank Work Authorization

Date• PPS Personnel Status Report

will not track work authorization end date

• Employee automatically sets to 0 withholding allowances until UC W-4NR is completed & data entered into PPS.

• Nonresident alien employees do not have access to AYSO

• Glacier does not capture Federal & State withholding

Mail or fax completed forms to: Campus Shared Services1608 4th StreetBerkeley, CA 94710-7600Fax - 664-9018

UC W-4NR/DE 4:Nonresident Withholding Allowance Certificate

Who must sign this form?• Nonresident aliens living and working

outside the U.S.• Nonresident aliens exempt from Social

Security because of an F-1 or J-1 visa status• Resident aliens exempt from Social Security

because of an F-1 or J-1 visa Status

UCRS 419:- Statement Concerning Your Employment In a University Position Not Covered by Social Security

RECOMMENDED: Give a photocopy of the form to the employee.OPTIONAL: Retain a photocopy of the form in the employee’s personnel file.

Mail completed form to:UC RASC—Records ManagementP.O. Box 24570Oakland, CA 94623-1570

Tax Compliance for

Foreign Individuals

GLACIER Tax Compliance System

Central Payroll relies on GLACIER to determine: U.S. tax residency status via substantial presence test. tax withholding rate for payments. tax treaty eligibility: may apply to Nonresident Aliens (NRA) and Resident Aliens (RA). These elements impact:

• Federal income tax withholding• Medicare and Social Security Tax withholdings

Tax Reporting forms

A completed GLACIER record is required for all foreign nationals who receive paymentsfrom the University.

Who Requires a GLACIER Record?

• Foreign students receiving nonqualified fellowship or scholarship• Foreign non-students receiving fellowship (visiting scholars)• Foreign independent contractors receiving service payments for work performed in US• Foreign guest speakers, honoraria, or prize payment recipients• Foreign student employees, including GSIs, GSRs, readers• Foreign non-student employees, ie. full time professors and specialists• All international postdoctoral scholars• Postdoc employees (3252)• Postdoc Fellows (3253)• Postdoc Paid-Directs (3254)

GLACIER Record

GLACIER Record

How to determine if a GLACIER record is required:

Individual has indicated in Section 1 of the Form I-9 that they are a U.S. Citizen or a U.S. Permanent Resident- NO GLACIER TAX RECORD REQUIRED

Individual has documentation to substantiate a U.S. Refugee or approved U.S. Asylum status- NO GLACIER TAX RECORD REQUIRED

Individual is not a U.S. Citizen or U.S. Permanent Resident and will be working and living exclusively outside of the U.S. – NO GLACIER TAX RECORD REQUIRED

Individual is not any of the above- A GLACIER TAX RECORD IS REQUIRED

The GLACIER process is a coordinated effort made between the hiring department, the international student/scholar, and the Central Payroll Office

The Department initiates the GLACIER process:

Request a GLACIER account for the NRA by completing an initial GLACIER Information Form to Central Payroll;

OR

If Department has GLACIER Admin 3 role, create account

International student/scholar receives email from [email protected] with instructions to access GLACIER.

GLACIER Process

GLACIER Process

To ensure proper tax withholding, the international student or scholar must:

Log-in to GLACIER website through www.online-tax.net Complete the online GLACIER record using I-20, DS-2019, I-94 User will be instructed to sign & send GLACIER and immigration forms to the

Central Payroll Office GLACIER documents should be submitted to Central Payroll within 10 days

Central Payroll reviews the documents, updates GLACIER when complete and updates PPS or BFS for tax treatment.

GLACIER Record

Individual should have only one GLACIER record for their entire stay at UC Berkeley

Individual should update when payment type changes (ie. GSI/GSR vs. fellowship appointments) or immigration status changes.

An email will be sent for non-payroll payments when the GLACIER record is incomplete.

GLACIER: GSR/GSI & Fellowship Sample

Please submit a completed GLACIER Information Form to the Central Payroll Office by fax 643-9339 or email to [email protected] to request a GLACIER record.

GLACIER Tax Summary Report

Required Document CopiesRequired Forms

U.S. Residency Status

Tax Treaty EligibilityTax

Withholding Rate

• U.S. maintains income tax treaties with a certain countries. Depending on each tax treaty, there may be provisions in which a type of income may be exempt from U.S. federal tax.

• Based on the information entered by the individual, GLACIER will determine if the international student/scholar payment is eligible for a federal tax exemption by an income tax treaty.

• Tax treaty exemptions apply to federal tax withholding only .

• Exemption is usually available for a limited time and may include a dollar limit.

Income Tax Treaties

IRS Form 8233

Tax Treaty Statement

FormW-8BEN

Used to determine federal and state tax withholding allowances.

International students and scholars complete the form and send to Campus Shared Services, Records Management.

By completing a GLACIER record, international student/ scholar does not change their salary withholding allowances.

For federal income tax purposes, an international student/scholar can only claim single, 0 or single, 1.

GLACIER Does NOT Replace the UC W-4NR/DE 4

Helpful Tips

International students/scholars must access their GLACIER records and update their record if they receive any change in immigration status, immigration duration, new address, etc.

International students/scholars should also update their record when their funding changes

If your department pays a large number of international students/scholars, you can request a GLACIER Administrator 3 role. As an Administrator 3 you will have the responsibility of entering the information from the GLACIER Information Form into GLACIER directly. Contact Arthur Quilao to request Administrator 3 access.

Used by F-1 fellowship, scholarship or grant recipients who are not eligible for SSN Non-service funds.

Effective October 2012, Berkeley International Office is required to mail ITIN application on behalf of international students

o Process outlined at: http://internationaloffice.berkeley.edu/itin_faqs

ITIN application (W-7) generated through GLACIER.

Students visits BIO after dropping of GLACIER paperwork at Payroll Office.

ITIN number or request for additional information will be mailed to student in 2-4 months.

Can enter “000-00-0000” in HCM to initiate fee and fellowship payments in the meantime.

Individual Tax Identification Number (ITIN)

Individual Tax Identification Number (ITIN)

Social Security Process

Eligibility How to apply When to apply

Issue F-1 J-1 StudentsEligible for SSN? Yes, with a job offer

beginning within 30 daysYes, with a job offer or fellowship

F-1 & J-1 Differences: SSN

SSN- Student Eligibility

F-1 Students

Proof of F-1 status

GSI/GSR job offer letter dated within past 30 days for employment within next 30 days

Students with fellowships/scholars or do not have employment are not eligible

J-1 Students

Proof of J-1 status

BIO endorsed on campus employment-fellowship authorization letter

Students without employment or fellowship are not eligible

Employer’s Letter for F-1 SSN Application

1

• Department copies BIO sample letter, prints and signs letter for student

2• Student takes letter to BIO for

authorization

3

• Student takes endorsed letter and supporting documentation to Social Security

J-1 Student Employment/Fellowship Authorization Form

1• Hiring/awarding department

signs off on form

2• Student takes form to BIO for

authorization

3

• Student takes endorsed form and supporting documents to Social Security

Take all documents to SSA office at 2045 Allston WayComplete application form at SSA or fill out online at ssa.gov

How to Apply to the Social Security Administration Required Documents F-1 Students J-1 Students

Passport X X

Paper I-94 or passport admission stamp X X

I-20 X

DS-2019 X

On Campus Employer's Letter (authorized by BIO) X

Work or Fellowship Permit (authorized by BIO) X

New F-1 & J-1 Students– Must be registered at the University– Wait TWO WEEKS after the start of first

semester before applying for the SSN

Continuing F-1 & J-1 Students– Must be registered

When to Apply for SSN

SSN not required to begin employment, or to be paid

Use “000” number in HCM

SSN is usually issued and mailed within two weeks

Enter SSN in GLACIER and other appropriate systems when available (be sure to follow-up with student)

SSN – In the Meantime…..

All international students and scholars physically present in the US are required to file a tax report for that tax year.

Berkeley International Office has purchased FNTR– a web-based tax preparation system for non-resident aliens– FNTR access codes sent in late February via email– FNTR workshop & California State Tax workshops/webinars in

February, March & April for general tax information and requirements

UCB staff cannot answer individual tax questions

Tax Preparation

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