Important Information for New World Bank and IMF Employers

The Economic Stimulus Act, passed in February 2009, significantly lowered the income tax withholding rates for lower income U.S. workers. Why? The new tax rates are calculated assuming the worker will receive the new Making Work Pay tax credit, and the new rates "pre-pay" the credit in the form of lower income tax withholding.

Non-resident aliens, non-citizen individuals who are legally authorized to work in the United States and who work for less than 6 months in their first year on their work visa, are not eligible for the Making Work Pay tax credit. This means that the new, post-Stimulus Act tax rates are invalid for these individuals. HomeWork Solutions advises employers of these individuals, typically G-5, A-3 and NATO-7 visa holders who arrive after July 1, 2009, to use the 2009 Jan. - March tables when making any online withholding tax calculations.

The following two rules pertaining to Non-Resident Alien withholding remain in effect:
1. The Non-Resident Alien is only entitled to one (1) exemption on the form W-4.
2. The Non-Resident Alien MAY NOT claim Head of Household status.