http://agnews.tamu.edu/dailynews/storie ... b0706a.htm

Feb. 7, 2006
New Withholding Rule Applies to All Non-Resident Alien Workers
Writer: Tim W. McAlavy, (806) 746-6101,t-mcalavy@tamu.edu
Contact: Jay Yates, (806) 746-6101,JAYates@ag.tamu.edu
Photos and Graphics

CANYON – All U.S. employers are now required to collect and file withholding for non-resident alien workers, according to a Texas Cooperative Extension economist.

"That's the word from the Internal Revenue Service, effective Jan. 1, 2006," said Jay Yates, Extension risk management economist based at Lubbock, speaking to participants at the 2006 High Plains Vegetable Conference here.

"IRS Publication 51 details how this must be done and contains a chart to help you figure withholding for these employees," he said. "The chart can help you figure withholding on weekly, monthly and other pay periods."

Publication 51, Agricultural Employer's Tax Guide, is available online at:

http://www.irs.gov/pub/irs-pdf/p51_05.pdf

"I have been asked whether Quickbooks software is capable of handling this new requirement," Yates said. "At this point, I don't know."

Yates also noted that non-resident alien employees are also required to file a W4 form. The IRS now has English and Spanish-language versions of this form available online at: http://www.irs.gov/formspubs/lists/0,,id=97817,00.html . An IRS withholding calculator is available online at: http://www.irs.gov/individuals .

"There is also a new W9 form for contractors that also is available in Spanish," Yates said. "And there is a new I9 immigration form available from the Immigration and Naturalization Service."

"President Bush proposed a new temporary worker program in early January, so we could see a change in the current program sometime this year or next."

The Social Security Administration has piloted a voluntary employee identification program for U.S. employers, he said.

The Systematic Alien Verification for Entitlement (SAVE) program enables Federal, state, and local government agencies and licensing bureaus to obtain immigration status information they need in order to determine a non-citizen applicant's eligibility for many public benefits. It also administers employment verification pilot programs that enable employers to verify the work authorization of their newly hired employees, according the administration's program web site.

The SAVE program is available online at: http://ucis.gov.graphics/services/SAVE.htm .

"President Bush has mentioned this program, so it could become mandatory rather than voluntary," Yates said. "The online program is much faster for employers to use than the old Audix telephone system."

Increased emphasis on national border security may bring temporary worker programs into the limelight, Yates said.

"A temporary or guest worker program of some kind is essential for many businesses in this country, across all sectors – agricultural and non-agricultural," he said.

Yates coordinates Extension's FARM Assistance program in and around Lubbock. FARM Assistance is part of Texas Cooperative Extension's Risk Management Education Program. It helps individuals generate sound, statistically-based strategic financial analyses to make informed management decisions.

Data from these analyses provide a significant amount insight on the agricultural industry, as a whole, and enables FARM Assistance to conduct research to help industry groups, policymakers, and individuals identify trends and gauge impacts at the industry-level.

Information on FARM Assistance is available online at: http://farmassistance.tamu.edu . Ed Curry, of Curry Seed and Chile Company, Pearce, Ariz., encouraged conference participants to "talk to your Congressmen...let them know this (temporary worker program) is essential for agriculture and other businesses."

"It's a myth that we (agricultural employers) hire these workers because they are cheap labor," Curry said. "We need to pattern our guest or temporary worker program after those that already exist successfully in other nations."