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New forms, rates for calculating withholding tax for non-resident aliens

The IRS has announced that the 2009 personal withholding exemption amount has been increased to $3,650.00 ( http://www.irs.gov/newsroom/article/0,,id=187825,00.html). This will result in an increase in the daily prorated exemption amount used for calculating withholding on payments to non-resident aliens to $10.00 per day (the 2008 rate was $9.56 per day). The updated forms which reflect the change in the daily exemption rate are now available at the Accounting Services website at http://www.bussvc.wisc.edu/acct/forms.html. The forms reflecting this change are the Payment for Services and Research Subjects and the Payment for Scholarships, Fellowships, Participant Support (Class 57XX).

Please pass on this information to the appropriate individuals as you deem necessary, and instruct them to begin using the new exemption amount for payments made in calendar year 2009.

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