International Payroll Issues: Federal

Original Author: Ryan F. Donovan

Updating Author: Brightmine Editorial Team

Summary

This guide provides HR and payroll professionals with general compliance guidance regarding the federal income and employment tax laws and regulations applicable to employees who are sent to work abroad (i.e., expatriates) or are brought from abroad to work in the US (i.e., nonresident and resident aliens). It covers requirements regarding federal and state income and employment tax withholding; tests used to determine an employee's residency for tax purposes; prevention of double taxation between the US and other countries; the foreign earned income and housing cost exclusions; the credit or deduction for foreign taxes paid; US state tax considerations; and the effect on withholding of US income tax treaties with other countries and tax treaty tie-breaker provisions.