Exempt from Taxes?
System
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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!!!
Thanx in advance!!!
Comments
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Good luck, keep us posted.
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
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