Exempt from Taxes?

System · July 2005

I'm all alone this week. My assistant is on vacation and I have to do everything myself. I need a quick answer. Hopefully, a payroll expert can help me. We are hiring a foreign exchange student for a temporary position. He returns to Russia at the end of September. Is it true that he does not have to pay taxes? He is exempt from Federal W/H? Our payroll department doesn't even know.

Thanx in advance!!!

amwkim · July 2005

It depends on what kind of visa he has.

LivindonSouth · July 2005

Can you elaborate on that? Which student visas allow the student to avoid the payment of federal income taxes?

Disclaimer: This message is not intended to offend or attack. It is posted as personal opinion. If you find yourself offended or uncomfortable, email me and let me know why.

Dutch2 · July 2005

We also have a college student from Russia (actually Moldova) working for us. However he is paying taxes just like the rest of us and has never said anything about not having to do so. He may file to have it all refunded each year. He has a USA Social Security Card and a Missouir Driver's License. The college provided the forms to us basically stating that he is a full-time student in good standing and in valid F-1 visa status and that he will be ingaged in employment which will enhance and is realted to his undergraduate studies in business. He plans to go into banking when he returns home.
Good luck, keep us posted.

Geno · July 2005

s moll,

It doesn’t matter what type of visa an employee is in possession of -- nor does it matter what country the employee hails from. What matters is the employee’s filing status and his/her likely annual income.

Check a copy of the Maryland MW 507 for a good description of the circumstances under which an employee in Maryland can declare themselves “Exempt” from state payroll tax withholdings. The current minimum filing amount for singles and students (the earnings amount below which withholdings are not required) is $7,950 --for all others the amount is $5,000.

I believe the federal minimums are the same.

Geno, SPHR

System · July 2005

Geno,

I looked at the MW 507 and don't find any information to the level of income, only state residency. Perhaps I don't have a current form. It mentions 'annual income below the minimum filing requirement' but it doesn't say what that is.

What's the revised date on the bottom of your form?

Thanx!

Geno · July 2005

Sorry moll, I should have said that those numbers came from the instruction booklet that accompanies the MW507 form.

Geno

Exempt from Taxes?

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