How to tax an employee as a nonresident alien

How do I tell Munis my employee needs to be taxed as a nonresident alien for federal income tax?

• Enterprise ERP Payroll
• Deduction and Benefit Master
• Tax Tables

The NR Alien Tax Code should be populated with NR-NR Alien on the secondary federal deduction.

A NR Tax Table will need to be created to prevent S-Tax Table Missing errors within payroll. (This tax table is not used in the federal withholding calculations, it just needs to exist.)

1. Go to Tax Tables. (Payroll>Payroll Setup>Income Tax Setup>Tax Tables)
2. Click Add. Define Effective date 01/01/20XX. Define State Code as NR-NR ALIEN. Define Pay Period Annual. Define Tax Table Code as 01-Like Federal. Click Accept. 
   1. Create the Tax Table with these 4 fields ONLY or S-Tax Table Missing errors will occur. 
3. Click Tax Table in the menu. Click Update. Define If taxable wage is over 00 but not over 99999999.99, +/- amount 0.00, +/-% 0.000 Over 0.00. Click Accept. Click Return. 
4. Click Calc in the menu. Everything can stay as 0.00. 

*The XX-Federal tax tables will be used as usual to calculate the federal withholding dependent on marital status and the Non-resident alien amount will be added to the gross during the calculation

There is additional information in Hidden Gems in Payroll