Purpose
To notify agencies of the Control-D report, NPAY741 (Aliens Who Have Reached Their Tax Treaty Limits).
Affected Employees
Nonresident aliens who have reached their tax treaty limit
Effective Date(s)
Immediately
OSC Actions
OSC will create the Control-D report NPAY 741 weekly.
Note: This report is available only in Reporting Tool Control-D.
Control-D Report
NPAY741 (Aliens Who Have Reached Their Tax Treaty Limits).
Agency Actions
Agencies must:
- review the NPAY741 and
- notify affected employees that wages earned over the treaty tax limit are subject to Federal, State and local taxes.
Note: PayServ will automatically start the Federal and State taxes. However, if the NRA is a resident of one of the five boroughs of New York City or the City of Yonkers, local taxes are required to be withheld.
Please follow these instructions to start local taxes in PayServ:
Compensate Employees > Maintain Payroll Data (US) > Use > Employee Tax Data > Federal Tax Data
- Insert a new row
- Enter effective date: (beginning of a pay period)
- Special Tax Withholding Status:
- Click radio button “None”
Federal Withholding Status: Single 1
FWT Additional Amount: $15.30 - Select the State Tax Data page
Under State Information: Check “Resident” box
Under Special Tax Status: Click radio button “None”
SWT Marital/Tax Status: Single
Withholding Allowance: 1 - Select the Local Tax Data page
Under Locality :
Click the look up tool and select the appropriate Locality
Check “Resident” box
Local Withholding Special Allowances – enter appropriate allowance - Save the page
Questions
Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.