Payroll Services SPECIAL DEPTPAY Message to Units with NRAs

This is a special email to those departments, colleges, units that employ nonresident aliens. The IRS has issued 2 revenue rulings which will change the way WSU calculates the withholding tax on NRAs starting on the 1/10/06 paycheck. Watch for the All-University Announcement coming on December 1 for more details. Students will no longer be required to write the $16.60 additional withholding on line 6 of Form W-4 and in some cases students will not have to file a tax return (1040NR or 1040NREZ) for 2006 like they are currently required to do. The bad news is that all F-1s, Js, H1Bs, who are not resident aliens for tax purposes, must supply Payroll Services with a new Form W-4 and IRS has issued new instructions on how Form W-4 must be completed so we are in the process of updating our website with the new instructions. Alice Smethurst 335-1277.