What withholding rate would we use if a U.S. corporation pays a nonresident alien as an employee?
Salaries, wages, or any other pay for employee services (referred to collectively as wages) paid to nonresident alien employees for services performed in the United States are subject to graduated withholding in the same way as for U.S. citizens and resident aliens. The graduated withholding rates for wages are found in IRS Publication 15 Circular E, Employer’s Tax Guide. Refer to the special withholding rules which apply to wages paid to nonresident aliens found in Chapter 9. Note: If the U.S. corporation is owned or controlled by the non-resident alien athlete or entertainer, the corporation is deemed to be acting as an agent of the foreign individual and withholding, absent a CWA must be done at 30 percent of gross earnings paid to or for the benefit of the foreign person.
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- What withholding rate would we use if a U.S. corporation pays a nonresident alien as an employee?
