Payroll for Foreign Nonresident Employees

To comply with U.S. law, Stanford must verify eligibility for employment for all new employees. Common documents used for I-9 verification:

• Unexpired foreign passport with an I-94 card and appropriate supporting documents for the visa type
• J-1: DS-2019 
• F-1: I-20 
• H-1B: I-797 
• TN, L-2S: Legible date on I-94 
• Employment Authorization Document (EAD) card (common for J-2 spouses and F-1 OPT)
   

Employment authorization expires on the date shown on the I-94 supporting document or on the Employment Authorization Document card. Employees must present updated documentation before expiration; otherwise they must stop work on or by the expiration date. 

A Social Security number (SSN) is required of all employees working in the U.S. 

• Nonresident employees may start work before receiving  a Social Security number, but they must apply promptly and provide the number to Stanford when received. Refer to the Bechtel International Center website for additional information on the application process. 
• If the SSN application is pending, the employee should submit a copy of the application receipt to the I-9 Compliance Specialist in the Payroll Department by submitting a payroll support request.  
• Faculty and staff should present their Social Security card to their department or HR administrator. 
• Student and postdoc employees should enter their Social Security number in Axess when it is received under Axess > Student > Submit SSN/ITIN.

• Nonresidents must use the Single marital status on the federal W-4 Form.
• California DE-4 withholding allowances are not restricted for nonresidents.
• Refer to How to: Declare or Change Income Tax Withholding Allowances

• Nonresident employees on F-1 and J-1 visas are exempt from paying FICA taxes until they become U.S. tax residents. F-1 And J-1 students also qualify for the student FICA exemption, which may continue after residency begins.
• Typical residency test periods:
  • F-1 and J-1 students generally maintain nonresident status for their first five calendar years in the U.S.   
  • J-1 researchers generally maintain nonresident status for their first two calendar years in the U.S.; FICA withholding applies starting Jan. 1 of the third calendar year. 
• H-1B, J-2 and TN visa holders are subject to FICA taxes from their first day of employment. 

After July 6, 2026: To establish the exemption from FICA taxes, nonresident employees should submit a Foreign Nationals Details Journey in Sequoia, listing all entry and exit dates to and from the U.S., so residency status can be determined. See How To Update Employee Pay Details.

Residents of certain countries may be eligible to claim a tax treaty to exempt all or part of their wages from U.S. federal income tax withholding. 

• California does not honor federal tax treaties; therefore, wages are taxable by the state of California.
• Tax treaties for F-1 and J-1 students generally exempt a limited amount of wages, from $2,000 to $9,000, from federal income tax.
• Tax treaties for researchers generally exempt all wages from federal income tax.
• A Social Security number is required to claim the tax treaty benefit.

• Wages are reported on Form W-2 at the end of the calendar year. 
• Nonresidents who have claimed a tax treaty with Stanford will receive a second form, Form 1042-S, reporting the wages associated with the tax treaty benefit.
• Refer to the Annual Tax Form Distribution page for more information.