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 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: |
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 |
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 |
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.
|
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.
|
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. |
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