Nonresident Alien Tax Tab

Financial Processing > Standard Transaction E-Docs > Disbursement Voucher > Document Layout

Nonresident Alien Tax Tab

This tab is completed only if the payee is a nonresident alien and it is only editable by a member of the KFS-SYS Tax Manager role when the document has routed to them. The information on this tab is used for reporting purposes and to add any special tax withholding that might be required as a result of the income classification of the payment when the fields are completed and generate lines is clicked. If the transaction is taxable, this function automatically adds the appropriate tax related accounting lines to the Accounting Lines tab of the document, and reduces the total check amount if tax needs to be withheld.

Click tinybutton-genlines to add the appropriate tax related accounting lines.

This following describes the definition for the Nonresident Alien Tax tab.

Nonresident Alien Tax tab definition

Title	Description
Income Class Code	Required. The type of activity this disbursement is for. Select the type of activity from the list. Values may vary, but some examples include: Fellowships: Non-service related payments Independent Contractor: Service related payment Non-Reportable: Goods or accountable plan travel Royalties: Royalty, rights or permission payments
Federal Tax Percent	Required if the Income Class entry is Fellowship or Independent Contractor. No entry is allowed if the Income Class entry is Non-Reportable. The percentage of federal tax to be withheld from the payment. Either enter the appropriate percentage for the income class or use the lookup to search for it. The default entry is 0.
State Tax Percent	Required if the Income Class entry is Fellowship or Independent Contractor. No entry is allowed if the Income Class entry is Non-Reportable. The percentage of state tax to be withheld from the payment. Either enter the appropriate percentage for the income class or use the lookup to search for it. The default entry is 0.
Country Code	Required if the Income Class entry is Fellowship or Independent Contractor.. No entry is allowed if the Income Class entry is Non-Reportable. The nonresident alien payee’s country of citizenship. Select the country from the list. The payee's country of citizenship is not necessarily the payee's country of residence.
Treaty Exempt	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. Select this check box if there is a tax treaty with the nonresident alien payee's country. Selecting this check box indicates that there is no tax withholding on the payment.
Foreign Source	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. Select this check box if the payment is defined as foreign source based on U.S. income sourcing rules. Selecting this check box indicates that there is no tax withholding on the payment.
Gross Up	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. Any taxes required to be withheld are calculated and added to the original amount of the disbursement voucher by charging an additional matching amount to the first account listed in the Accounting Lines section.
Reference Doc	Optional, except no entry is allowed if the Income Class entry is Non-Reportable. Identifies a reference of a former payment. Used when processing a correction to a previous payment. Even when a tax rate is indicated, no tax withholding will occur.