Nonresident Aliens who are in the United States on a J1, F1, M1 or Q1 visa are usually exempt from Social Security and Medicare taxes as well as unemployment tax. Nonresident aliens who are in the United States on a H1B, TN, O1 or J2 visa are subject to Social Security and Medicare as well as unemployment tax. NOTE: Nonresident Aliens on a F2 visa are not allowed to work and should never be placed on the payroll.
Resident Aliens are subject to federal employment taxes same as U.S. citizens.
Nonresident Aliens in most cases are required to complete Form W-4 (pdf) claiming single status with one withholding allowance and writing "nonresident alien" above the dotted line on line 6 of Form W-4. They are not required to request an additional amount of withholding. They cannot claim exempt status. The rules for the K-4, Kansas Employee's Withholding Allowance Certificate are the same as for the W-4. Prior to January 1, 2006 non residents were required to claim single status with one withholding allowance and an additional $15.30 per pay period unless a student from India.
Nonresident Aliens from tax treaty countries are also required to complete Form W-4 (pdf) claiming single status with one withholding and writing "nonresident alien" above the dotted line on line 6 of Form W-4. They can however, claim exempt status with some limitations. They must complete IRS form 8233 (pdf) and Appendix A or B, if applicable. Please refer to Tax Treaty Summary for country and whether an Appendix A or Appendix B is required. Note: GTA'S, GRA'S and GA'S are considered students. The rules for the K-4, Kansas Employee's Withholding Allowance Certificate are the same as for the W-4.
J-2 Visa Holders are required to complete Form W-4 (pdf) claiming single status with no more than one withholding allowance. They cannot claim exempt status regardless of their country origin. The rules for the K-4, Kansas Employee's Withholding Allowance Certificate are the same as for the W-4.