Alien - How to Employ an Alien Living & Working Outside of the United States

Immigration Documentation 

Not needed because there is no entry into the United States.

Required Forms 

  • UC W-4/DE4 NR Form — This two part form is required to note the particular tax codes for federal and state income tax withholding. The combination of these codes with the appropriate citizenship code will insure that no federal or state income tax is withheld. The correct codes for a nonresident working and living outside the United States are:
    • Federal allowance (line 2 on form) -  "999"
    • State allowance (line 2 on form) -  "997” 
  • Oath & Patent Acknowledgment Form — There are two sections to this form.
    • The State Oath of Allegiance should only be signed U.S. citizens.
    • The Patent Acknowledgment must be signed by all University employees. 
  • Foreign Source Income Statement — This form is needed to document the out of country work location. It is the responsibility of the department to make sure that the employee does not enter the United States for the duration of employment (i.e. meetings, seminars, etc.) See Related Information for link to Foreign Source Income Statement.
  • Out of State Income Tax Withholding Form (UPAY 830) — This form is needed to document work performed outside of the state of California.

PPS Coding 

  • EPD1 Screen (Employee Personal Data 1)
    Citizenship Code - an "X" is entered in this field to indicate a nonresident of the United States who is a UC employee working outside the United States.
  • EALN Screen (Alien Information)
    Country Code - the appropriate 2-character code would be entered to indicate the country of residency.
  • ETAX Screen (Tax Information)
    Code the federal and state allowances per the chart below:
    Field LabelCodeExplanation
    Federal Personal Allowances999The employee is a nonresident of the United States living and working outside the country and is exempt from income tax and income tax reporting.
    State Personal Allowances997The employee is a non-resident of California and is living and working outside the state of California and is therefore claiming exempt from California income taxes.
    Federal and State Personal Allowance000A nonresident professor who has a 9 month faculty appointment is not eligible for the ETAX coding indicated above for the July and August payments (or the payments made while living outside the United States). They should be coded with 0 allowances for both federal and state allowances.
  • ERET Screen 
    A non-resident who lives and works outside of the United States is eligible to participate in the University of California Retirement Program based upon length and duration of appointment. The system should derive the code automatically.

Year End Tax Statement 

A nonresident employee who lives and works outside the United States does not receive any tax statement at year end.

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