Sac State University Policy Manual

Non-Resident Alien Tax Compliance Policy (NRAT)

Policy Administrator: Vice President for Human Resources
Authority:
Effective Date: December 1, 2004
Updated: PM HR 04-12
Index Cross-References:
Policy File Number: UMN12125.htm

NON-RESIDENT ALIEN TAX COMPLIANCE POLICY (NRAT)

Background

Compliance with tax requirements has become an important issue for colleges and universities because of aggressive audits by the Internal Revenue Service, which can result in significant penalties, fines, and back taxes.  The Chancellor's Office is committed to ensuring tax compliance throughout the CSU, as evidenced through policies, manuals, software support, and training. 

In order to comply with provisions of the Internal Revenue Code, Treasury Department regulations, and the California Revenue and Taxation Code, CSU campuses and auxiliary organizations are required to ensure compliance by either withholding taxes from payments made to (or on behalf of) non-resident aliens, or properly administering withholding rates or tax treaty benefits.  This impacts many campus departments that initiate and process payment transactions. 

Policy

All campus departments and auxiliary organizations must comply with federal, state, CSU, and campus regulations and policies in order to ensure full compliance with Non-

Resident Alien Tax (NRAT) withholding and reporting. 

Assignment of Responsibility

At CSUS, the Human Resources Payroll Office will coordinate the NRAT compliance program, working with Accounts Payable, Auditing Services, Procurement Services, Student Financial Aid, Office of Global Education, Student Financial Services Center, auxiliary organizations, and other affected departments. 

All campus departments and auxiliary organizations will need to adhere to the NRAT compliance program by becoming familiar with NRAT procedures for payment purposes and ensuring that no payments are made outside the scope of this program.  Information on Tax Compliance is available on the Administration and Business Affairs Web site at http://www.csus.edu/aba/audit/Tax-Compliance/Nonresident-Alien.html

Questions concerning this policy should be directed to the Human Resources Payroll Office at extension 8-6211. 

 HR:  11/29/04