1042-S Non Citizen Special Info Type (SIT) Monitoring

Purpose

This document describes what Special Information Types (SITs) are, how to enter SIT information into the system, and how to monitor and update the SIT data to ensure that the 1042-S tax statements are accurate at year-end.

Background

Information contained in reports and year-end tax statements is collected from the data stored in the Research Foundation (RF) business system. If data is missing or inaccurate, tax statements will be missing or inaccurate. Correcting tax statements after they have been created and distributed is both an administrative burden for operating locations and central office and an inconvenience to the person receiving the tax statement from the Research Foundation (RF). Operating locations should have a procedure in place for monitoring and reviewing input into the RF business system so that accurate data is maintained throughout the year.

Special Information Types (SITs)

The Non Citizen Visa and Residency Info SIT and Non Citizen Reporting Info SIT are used for recording residency status and tax status. SIT information is generally input when a new record is added for an employee or fellow. These two Special Information Types (SITs) must be updated when residency or tax status changes.

Applicable SIT input is defined by the classification of the person (i.e., employee or fellow) and a person's specific situation. The customized report "RF: Non US Citizen SIT and Tax Data" lists SIT data fields for some of the more important information the RF uses to produce 1042-S tax reporting documents for the IRS and for the non citizen employee or fellow. Other SIT fields are available to store non citizen information for easy reference.

Employees Who Require Special Info Type (SIT) Input

Complete applicable non citizen SIT fields for a non citizen employee who has claimed income tax treaty exemption by submitting to the RF valid, complete, signed, and dated:

Fellows Who Require Special Info Type (SIT) Input

Applicable SIT information must be input into the Non-Citizen Visa and Residency Info form and the Non-Citizen Reporting Info form. SIT input is determined by the specific situation of the fellow. Applicable fields must be selected and entered based on the information at hand.

Source documents that will assist in SIT input are as follows:

Monitoring Special Info Type (SIT) Input

1042-S tax statements must be issued to nonresident alien treaty-exempt employees and all nonresident alien fellows. To provide correct year-end reporting information, corrections and updates may be required to SIT data in the People File. Necessary input and updates must be made before the last payroll of the calendar year in order to issue accurate 1042-S statements.

The following table describes the steps to take to monitor 1042-S activity:

Step

Action

Guidance

1

Become familiar with income payments to non citizens. To ensure correct year-end reporting, the business system records must be input correctly from the paper documentation.

Review the following procedure and guidance documents:

2

Run the RF: Non US Citizen SIT and Tax Data report.

Review the report description "RF: Non US Citizen SIT and Tax Data."

3

Review the RF custom report and SIT data input.

Each non citizen employee and fellow is identified by information entered in the Nationality field of the Personal Information alternate region on the People form. The RF custom report will list significant information that has been input into the Assignment area of the People Form.

4

Review the RF custom report to ensure that required SIT information has been input into the Non-Citizen Visa and Residency Info SIT window.

For each person's record, use the source documents described in this procedure and on file at the operating location to add, correct or update SIT information.

Note: Ensure you end date old Special Info Type lines.

5

Review the RF custom report to ensure that required SIT information has been input into the Non-Citizen Reporting Info SIT window.

For each person's record, use the source documents described in this procedure and on file at the operating location to add, correct or update SIT information. Prior calendar year lines are automatically end dated with year-end 1042-S processing.

6

Continue to run and re-run the monitoring report RF: Non US Citizen SIT and Tax Data.

Ensure that the changes made to the SIT windows are reflected in the monitoring report and verify if any additional information or records need to be updated.

7

Maintain accurate data in the RF business system and monitor throughout the year.

To ensure that IRS 1042-S reports are correct, make necessary modifications to non citizen records before the last payroll of the calendar year.

 

Note: Ensure you end date old Special Info Type lines.

Using the RF Oracle System Functionality to Monitor Non Citizen SIT Data Input

This guideline provides instruction on the use of the “List” or “View” functionality of your payroll system responsibility to query data that has been entered to a Special Information Type (SIT). These instructions are focused on the Non Citizen Special Information Types, but the basis of these guidelines could be used to query any SIT.

For the Non Citizen Reporting SIT:

Step

Action

1

Go to RF payroll business system and select the function “List” or “View”. (The function may be named differently depending on your payroll responsibility.)

2

Select the List or View for “Emp’s by Special Information.”

 

NOTE: This brings you to a screen where you can select any Special Information Type.

3

Access the Non Citizen Reporting SIT.

 

NOTE: This brings up a blank Non Citizen Reporting SIT form which you can enter data to narrow your list. For the purposes of this procedure, enter the current calendar year in the “Calendar Year” field and select "OK."

4

Click on the “Find” button. This will return all Non Citizen Reporting data entered for your location for the current calendar year.

 

NOTE: At this point you can review the data online or you may want to export the data to a spreadsheet to facilitate the review process. Within a spreadsheet you can sort data to assist your review, especially if you have a high volume of records.

5

Scroll to the right side of the “Details” column.

The detail column will display the data entered into the SIT. See tip below on how to see the data in the “Details” field.

6

Compare data on file and to ensure the correct information has been entered into the Non Citizen Reporting SIT.

 

NOTE: This is an easy way to verify documentation for employees claiming income tax treaty exemption and the proper data is entered to the system. Employee treaty documentation is kept at the campus office and if the data is not entered to the Non Citizen Reporting SIT, no 1042-S tax statement will be produced in error.

TIP: At the far right of the Non Citizen Reporting SIT is a column titled “Details.” The field displays all the recorded data in the Non Citizen Reporting SIT. To open the Details field while viewing the data in the “List” or “View” mode:

For the Non Citizen Visa and Residency SIT:

Step

Action

1

Go to RF payroll business system and select the function “List” or “View”. (The function may be named different dependent upon your payroll responsibility)

2

Select the List or View for “Emp’s by Special Information.”

 

NOTE: This brings you to a screen where you can select any Special Information Type.

3

Access the Non Citizen Visa and Residency SIT.

 

NOTE: This brings up a blank Non Citizen Visa and Residency SIT form which you can enter data to narrow your list. For the purposes of this procedure accept the form as blank - selecting all records and select "OK."

4

Click on the “Find” button. This will return all Non Citizen Visa and Residency data for your location.

 

NOTE: A limitation to this function is that the list returns both active and inactive records.

5

Review the “Full Name” column to identify records with multiple Non Citizen Visa and Residency SIT information.

 

NOTE: At this point you can review the data online or you may want to export the data to a spreadsheet to facilitate the review process. Within a spreadsheet you can sort data to assist your review, especially if you have a high volume of records.

6

Scroll to the right side of the screen for the identified record and find the “Start Date” column.

7

Next to the “Start Date” column you will find the “End Date” column. Review the records in question to ensure an end date exists for all previous Non Citizen Visa and Residency SIT information

  • If end dates for previous Non Citizen Visa and Residency SIT information is blank, research the record and enter the appropriate end dates
  • If end dates for previous Non Citizen and Residency SIT information is present – STOP

     

    NOTE: There should only be one “active” Non Citizen Visa and Residency SIT for a record. All previous records should be end dated.

Change History

 

 

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