Payroll Services WSU All-University Announcement

Dec 1, 2005

Tax Relief for Some Nonresident Aliens!

The Internal Revenue Service (IRS) has recently issued 2 Revenue Rulings which change the way employers calculate federal income taxes on wages paid to Nonresident Alien students and scholars starting with the 1/10/06 payday. The new withholding rules are meant to prevent over-withholding by more closely approximating an individual’s actual income tax liability.

The Revenue Rulings include the following:

  1. No longer will Nonresident Aliens be required to claim the $16.60 additional dollar amount on their Form W-4 Employee’s Withholding Allowance Certificate.
  2. Students and Scholars in 2006 who earn less than $3,300.00 will no longer need to file a US income tax return (1040NR or 1040NREZ) as they currently are required to do.
  3. For 2006 income Nonresident Aliens are REQUIRED to file a new Form W-4 Employee’s Withholding Allowance Certificate with Payroll Services. The IRS has issued new instructions for how an NRA must complete Form W-4 so be sure and follow the instructions posted below on our website. This means that anyone on WSU Payroll whose immigration status is F1, J1 or 2, or H1B and is not considered a Resident Alien for tax purposes must complete a new Form W-4. The 2 exceptions to this requirement are if you are a student from India (you do not need to complete a new Form
    W-4) or you submitted a Tax Determination Questionnaire to Payroll Services and received a tax treaty exemption for 2005. For employees receiving tax treaty benefits, Payroll Services will prepare your 2006 Form W-4 and contact you when it is ready for your signature. Contact Payroll Services if you have any questions at 335-1277 or

New Form W-4 Completion Instructions:

To learn more details about these changes, visit our website: