F-1 and J-1 Students on Practical Training
Note: All acronyms are followed by "#" and are defined in the Acronym Index. Additional information on forms (##) and I-9 verification (###) is also provided.
International students who are enrolled in or have completed a degree program at a US college or university may be eligible for work experience in their field of study. F-1 students may be employed for up to 12 months; J-1 students for up to 18 months, or 36 months in a post-doctoral research position. UW-Madison does not have to file any documents (unless the student attended school here); students must get the authorization through the university they are attending. The hiring department must ensure that the job is in the student's field of study and that the student has obtained the necessary employment authorization.
Type(s) of Payment- salary
- travel reimbursement
- F-1 - varies around the country, approximately 1-3 months. School recommends, INS must authorize
- J-1 - no INS processing, the student's school can authorize
- F-1 - up to 12 months
- J-1 - up to 18 months; up to 36 months for postdoctoral research positions
- requires no processing by UW-Madison hiring Department
- some J-1 students may be subject to the two year home residence requirement (see J-1 section) and be ineligible to continue working after the training period expires
- none
Salary
- Form W-4 Employee's Withholding Allowance Certificate
- UW Form 1123 Alien Tax Information Request, attach copy of Passport, I-94, AND: F-1s: I-20, Employment Authorization Document J-1s: DS-2019, sponsor's authorization letter
- Social Security Number, Individual Taxpayer Identification Number (ITIN), or copy of filed ITIN application required.
- For payroll and tax treaty forms to complete and file refer to the International Tax Packet: PDF. This packet is designed as a self-contained Instruction Manual. Complete the information on the packet worksheet and based on that information you will be able to complete the required forms that will determine your Tax Status while in the United States. The checklist at the end of the packet will ensure that you complete and file all of the necessary forms. If the employee is from a tax treaty country you must determine the Income Code, based on the Job Title, and must submit a completed Form 8233 or W-8BEN and, if required, a Revenue Procedure Statement to be exempt from tax withholding under the treaty (subject to treaty limitations). See packet checklist for appropriate form (8233, W-8BEN, Revenue Procedure Statement) to file. To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or International Tax Packet section 2 (PDF) or Business Services web page (http://www.bussvc.wisc.edu/acct/tax/foreign/taxtabl1.html).
- PIR#, attach copy of Passport, I-94, and I-20 for F-1s; DS-2019 for J-1s
Social Security Tax
- FICA:
no withholding required until person is resident alien for tax purposes
Federal Tax
- Salary:
Taxes are deducted based on “single” with one allowance with an additional $250.00 (if paid biweekly), and an additional $500.00 (if paid monthly) added to gross wages before taxation. The federal percentage method of withholding is used, unless a tax treaty exemption applies and required forms are filed. For payroll and tax treaty forms to complete and file refer to the International Tax Packet: PDF. This packet is designed as a self-contained Instruction Manual. Complete the information on the packet worksheet and based on that information you will be able to complete the required forms that will determine your Tax Status while in the United States. The checklist at the end of the packet will ensure that you complete and file all of the necessary forms. If the employee is from a tax treaty country you must determine the Income Code, based on the Job Title, and must submit a completed Form 8233 or W-8BEN and, if required, a Revenue Procedure Statement to be exempt from tax withholding under the treaty (subject to treaty limitations). See packet checklist for appropriate form (8233, W-8BEN, Revenue Procedure Statement) to file. To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or International Tax Packet section 2 (PDF) or Business Services web page (http://www.bussvc.wisc.edu/acct/tax/foreign/taxtabl1.html). - Travel Reimbursement:
none at this time
State Tax
- Salary:
Taxes are deducted based on "single" with one allowance using standard graduated withholding tables, unless tax treaty exemption applies and required forms are filed. For payroll and tax treaty forms to complete and file refer to the International Tax Packet: PDF. This packet is designed as a self-contained Instruction Manual. Complete the information on the packet worksheet and based on that information you will be able to complete the required forms that will determine your Tax Status while in the United States. The checklist at the end of the packet will ensure that you complete and file all of the necessary forms. If the employee is from a tax treaty country you must determine the Income Code, based on the Job Title, and must submit a completed Form 8233 or W-8BEN and, if required, a Revenue Procedure Statement to be exempt from tax withholding under the treaty (subject to treaty limitations). See packet checklist for appropriate form (8233, W-8BEN, Revenue Procedure Statement) to file. To determine if tax treaty applies refer to IRS Publication 901, Table 2 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or International Tax Packet section 2 (PDF) or Business Services web page (http://www.bussvc.wisc.edu/acct/tax/foreign/taxtabl1.html ). - Travel Reimbursement:
none
F-1 - valid Employment Authorization Document issued by INS
J-1 - letter from Responsible Officer of the student's J-1 program authorizing the specific employment at UW-Madison, valid I-94 and DS-2019