U.S. Releases 2022 Guide for Withholding Taxes on Nonresidents

The 2022 version of Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, was released March 3 by the Internal Revenue Service.

U.S.-sourced wages paid to nonresident alien employees by an employer based in the U.S. generally are subject to the same income tax withholding methods used for U.S. residents. Other types of income generally are subject to a 30% flat rate.

Tax treaties between the U.S. and the nonresident alien’s country of residence may provide exemptions from U.S. income tax.

Employers are required to add to wages paid to nonresident alien employees the amounts specified in ...