Alien - Tax Withholding Requirements for Nonresidents

Federal and State Tax Withholding 

The following chart illustrates the various federal and state tax withholding rates based on the type of payment and particular tax circumstances of the payment.

Type of IncomeFederal TaxesState TaxesYear End
Statement(s)
Employment: Subject to a Tax Treaty0Based on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4Form W-2 for state tax information and Form 1042-S for federal tax information
Employment: Employee is a tax resident of Canada, Korea, MexicoBased on the IRS graduated income tax rates and subject to the allowances indicated on GLACIER generated W-4 and a restricted marital status of singleBased on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4Form W-2 for state and federal tax information
Employment: Employee is a nonresident who works and lives outside of the United States00No reporting required
Employment: All OthersBased on the IRS graduated income tax rates and subject to a restricted marital status of single with 1 allowanceBased on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4Form W-2 for state and federal tax information
Fellowship/Scholarship: F1, J1, M1, Q114%UCLA is not required to withholdForm 1042-S for Federal reporting only
Fellowship/Scholarship: Other Visas30%UCLA is not required to withholdForm 1042-S for Federal reporting only
Fellowship/Scholarship: On Tax Treaty0UCLA is not required to withholdForm 1042-S for Federal reporting only
Independent Personal Services30%7% of gross greater than $1500 if California nonresident592 if CA nonresident
Form 1042-S for federal reporting
Independent Personal Services - Tax Treaty07% of gross greater than $1500 if California nonresident592 if CA nonresident
Form 1042-S for federal reporting
Travel ReimbursementNot subject to income tax withholding as long as the Accountable Plan Rules are met. Otherwise, the rate is 30%Not subject to income tax withholding as long as the Accountable Plan Rules are met. Otherwise, the rate is 7% of gross greater than $1500 for California nonresidentNo current requirement as long as the Accountable Plan Rules are met. 
Otherwise:
592 if CA nonresident
Form 1042-S for federal reporting
All Other Payments30%7% of gross greater than $1500 if California nonresident592 if CA nonresident
Form 1042-S for federal reporting

Employment Tax 

Employment Tax also known as Social Security tax is only withheld on employment type payments. The current withholding rates for employment tax are:

  • 6.2% for OASDI
  • 1.45% for Medicare

Generally, all nonresident employees are subject to employment tax. However, Internal Revenue Code provides an exemption from withholding of employment tax on payments to nonresident aliens who entered the United States on F-1 or J-1 visas. See Tax Rules and Regulations for further information.

Back to Top