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IRS Form W-9, Request for Taxpayer Identification Number and Certification

• University (PDF)
• Research Foundation (PDF)
• 49er Foundation (PDF)

IRS Tax Determination Letter

• University
• Research Foundation
• 49er Foundation

California Tax Determination Letter

• University
• Research Foundation
• 49er Foundation

California Form 590, Withholding Exemption Certificate

• University (PDF)
• Research Foundation (PDF)
• 49er Foundation (PDF)

Non-Resident Alien Tax

• Certification of Academic Activity (PDF)
• Foreign National Information Form (PDF)
•  []
• ]

Employees and Students from Foreign Countries Working at ��ɫ����

Income Tax Withholding

Tax Reporting assists the payroll departments on Campus, as well as ASI, 49er Shops, and the Research Foundation by assessing federal income tax withholding for foreign persons working on campus. Sprintax Calculus software is used by Tax Reporting for this task. California income tax withholding does not require special handling. A foreign person is treated the same as a U.S. citizen for purposes of state income tax withholding. For federal income tax purposes, foreign persons are categorized as either Nonresident Aliens or Resident Aliens.

A Resident Alien for tax purposes is treated in the same manner as a U.S. citizen when filing a tax return and paying taxes. A Nonresident Alien for tax purposes has a completely different method of having tax withheld, completing tax forms and tax documents, and is eligible for very few and limited deductions when paying taxes. A Resident Alien for tax purposes must report worldwide income, whereas, a Nonresident Alien for tax purposes must only report and pay tax on money that they receive from U.S. sources.

The time period for which someone is a Nonresident Alien for tax purposes depends on the results of what is called the “Substantial Presence Test.” In general, individuals present in the U.S. under an F, J, M, or Q student immigration status will be a Nonresident Alien for the first five calendar years they are present in the U.S.; individuals present in the U.S. under a J or Q non-student immigration status will be a Nonresident Alien for the first two calendar years they are present in the U.S. There are many exceptions to the general rule so further questions must consider the facts and circumstances of the particular individual’s current and past visits to the U.S.

If an employee (including student workers) is classified as a Nonresident Alien, their withholding may be reduced or eliminated depending on whether the U.S. has a current tax treaty with their country of origin. Sprintax Calculus is used to determine both residency status and exemption due to tax treaty.

Nonresident Alien students, trainees, teachers, and researchers who are employees of ��ɫ���� use , Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to claim exemption from withholding of tax on compensation for services that are exempt from U.S. tax under a U.S. tax treaty.

will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U.S. income tax for residents of that particular country.

You can obtain the full text of tax treaties and accompanying Technical Explanations and Protocols at .

provides a summary of many types of income that may be exempt or subject to a reduced rate of tax.

Social Security Number

Any person receiving payment for any type of work in the United States is required to have a social security number. Generally, non-U.S. citizens authorized to work in the United States by the Department of Homeland Security (DHS) can get a SSN. Please consult with the Center for International Education for eligibility of employment:

1. F-1 Students with On-Campus Employment, Curricular Practical Training (CPT), Optional Practical Training (OPT)
2. J-1 Students with On-Campus Employment, Academic Training
3. J-1 Scholars (Professors, Teachers, Research Scholars, etc.) Authorized by Program Sponsor
4. J-2 Visa holders with Employment Authorization from the USCIS
5. Note: F-2 Visa holders do not have employment authorizations and are not eligible to apply for a SSN

Individual Taxpayer Identification Number

Any person who is not eligible to receive a SSN but who needs an identification number for tax purposes, should apply for an .

Administration at ��ɫ����

Payroll identifies an employee or student worker who is a foreign person based on the completed Form I-9, Employment Eligibility Verification.

1. Each foreign individual completes a basic package of information which includes copies of relevant documents. The cover form for this package is the ��ɫ���� Foreign National Information Form (PDF).
2. This package is forwarded to Tax Reporting. Each person’s data is entered into Sprintax Calculus and, once all the documents are available and all the information needed is recorded, a report is generated which indicates the payroll withholding required and specifies any additional documentation needed.
3. Payroll is informed of each person’s proper withholding.
4. Tax Reporting reviews payroll information on an annual basis to identify any change of status which would change a person’s tax withholding situation.
5. Prior to March 15 each year, Tax Reporting reviews the tax documents generated by Sprintax Calculus, Form 1042-S, Foreign Person’s US Source Income Subject to Tax Withholding, for accuracy. Forms 1042-S are then provided to employees and students.
6. Tax Reporting deposits tax withholding with IRS and prepares the required annual return, Form 1042, Foreign Person’s US Source Income Subject to Tax Withholding.

Students from Foreign Countries Receiving Non-Qualified Scholarships

Income Tax Withholding

A qualified scholarship is one that covers tuition and mandatory fees. A non-qualified scholarship is one that covers other expenses, like room and board and non-mandatory fees. The amount of a non-qualified scholarship that a foreign student receives must be assessed for federal income tax withholding. Unless exempted under a tax treaty, the amount of a non-qualified scholarship will be assessed for federal income tax withholding at a rate of 14%. There is no requirement to withhold state income tax on non-qualified scholarships received by foreign students.

An alien student, trainee, or researcher may claim a treaty exemption for a scholarship or fellowship by submitting to Tax Reporting. A scholarship or fellowship recipient who receives wages and a scholarship or fellowship from the same institution, both of which are exempt from tax under a tax treaty, can claim treaty exemptions on both kinds of income on Form 8233.

Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. federal tax on income from a scholarship or fellowship grant. However, a student (including a trainee or business apprentice) or researcher who has become a resident alien for U.S. federal tax purposes may be able to claim benefits under a tax treaty to reduce or eliminate U.S. federal tax on scholarship or fellowship grant income. Most treaties contain a provision known as a "saving clause." Exceptions specified in the saving clause may permit an exemption from tax to continue for scholarship or fellowship grant income even after the recipient has otherwise become a U.S. resident alien for federal tax purposes. In this situation, the individual must give ��ɫ���� Tax Reporting a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, to claim his treaty exemption. Additional documentation is required which will be specified by Tax Reporting.

More information can be found on the IRS website: .

Administration at ��ɫ����

1. Each semester, Tax Reporting receives a list of ��ɫ���� foreign students receiving non-qualified scholarships from Athletics and from Enrollment Services (for non-athletes).
2. Occasionally, the Research Foundation administers a grant which includes payment of non-qualified scholarships to non ��ɫ���� students. Tax Reporting receives notice from Accounts Payable when a payee is identified as a foreign person from the 204 Form, Supplier Data Record.
3. Tax Reporting contacts these students and obtains the FNIF form with accompanying documents.
4. Tax Reporting inputs student information to Sprintax Calculus and obtains the necessary withholding report.
5. Withholding information is sent to Student Financial Services or Accounts Payable.

Moving and Relocation

Income Tax Withholding

Federal

All moving and relocation payments made by Accounts Payable to, or on behalf of, employees require federal income tax withholding. This ruling became law effective January 1, 2018 under the Tax Cuts and Jobs Act of 2017, and remains in effect until December 31, 2025.

California

The State of California has not changed its guidelines. Relocation expenses that are “qualified moving expenses” are not subject to California state income taxes. ” Qualified moving expenses” are the reasonable costs of moving household goods and personal effects from the former to the new residence, travel expenses, and limited lodging costs.

Administration at ��ɫ����

1. Employees submit a Moving and Relocation Expense Claim form to Accounts Payable for payment.
2. Tax Reporting analyzes the expenses to determine California taxable income.
3. Tax Reporting forwards the income determination to university payroll. The actual tax rate will vary but is likely to be in the 35% range (includes both federal and California income tax withholding).
4. If the income which requires withholding is high, Tax Reporting will work with Payroll to spread the withholding over available pay periods.
5. Tax Reporting will notify the employee via email regarding their schedule of tax withholdings.

Achievement Awards & Gifts

Income Tax Withholding

Achievement Awards

Achievement awards include the value of any tangible personal property the University gives to an employee as an award for either length of service or safety achievements. Achievement awards may be excluded from employees’ income when they are within the University and IRS guidelines. To be excluded from taxation, achievement awards must meet the following IRS criteria:

1. Be given for length of service or safety achievement.
2. Be tangible personal property, other than cash, gift certificates or equivalent items.
3. Be given under conditions and circumstances that do not create a significant likelihood of the payment being disguised compensation.
4. Be given as part of a meaningful presentation.
5. Be no more than the specified dollar limits.

Gifts of cash, cash equivalents, gift certificates, meals, lodging, tickets, and vacation packages do not qualify to be excluded from the employee’s income. The facts and circumstances for any achievement awards exceeding $100 must be directed, in writing, to University Tax Reporting for evaluation. The IRS website has more information concerning Employee Achievement Awards.

Gifts

Gifts that are de minimis (of low value) are excluded from employee wages. IRS Publication 15-B states that “A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impractical. Cash, no matter how little, is never excludable as a de minimis fringe benefit. Gift certificates also do not qualify as a de minimis fringe benefit.

The following are examples of de minimis fringe benefits excluded from employees’ wages:

1. Holiday gifts, other than cash, with a low fair market value.
2. Employer provided meals if they are furnished on the University’s property, are furnished for the University’s convenience, and the employee accepts them as a condition of employment.
3. Occasional tickets for entertainment or sporting events.
4. Flower arrangements for funerals.

Additional information concerning Employee Achievement Awards and De Minimis Fringe Benefits may be found on the IRS website.

Administration at ��ɫ����

��ɫ���� policy specifies that any achievement awards and gifts given must fall within IRS guidelines for exclusion from income tax withholding. Accounts Payable reviews requests for payments for adherence to this policy. Any concerns or questions should be directed to Tax Reporting.

Faculty In Residence

Income Tax Withholding

Faculty-in-Residence (FIR) are ��ɫ���� full-time tenured or tenure track faculty members who live in an apartment in one of the residential colleges and serve a minimum of ten hours per week as liaisons between faculty and students while also encouraging the social, intellectual and academic involvement of students living in the residential halls. Working under the Residential Academic Coordinator, the Faculty-in-Residence work closely and cooperatively with the residential life professional staff, housing administration, and paraprofessional staff in developing a sense of community, involving their academic department in programming, facilitating faculty lectures, providing programs and activities for residents, and meeting the academic and community needs of the residents.

Remuneration for this appointment is 10 meals per week during the academic year for both faculty and their spouse/domestic partner, if applicable, and when the dining halls are open. Also provided is an unfurnished studio apartment in one of our three residential colleges.

Administration at ��ɫ����

1. Faculty Human Resources provides Tax Reporting each semester with the names of the Faculty-in-Residence.
2. Tax Reporting notifies Payroll of the rental compensation value of $877.50 per month for each faculty member.
3. Payroll records imputed income and federal and state taxes are withheld monthly.

Gift Cards

Income Tax Withholding

Gift cards are authorized for use at ��ɫ���� for the following purposes:

1. Incentives for participation in research and other university sponsored activities such as training, answering surveys, and participating in alternative transportation programs.
2. Support for students who qualify for “basic needs” programs.

Gift cards are always taxable income to the employee.

Administration at ��ɫ����

1. Initial purchase of gift cards is charged to a balance sheet account.
2. Disbursement of gift cards is recorded on the gift card log.
3. The gift card log is forwarded to accounting and becomes the signal to move the value of the disbursed cards from balance sheet to expense.
4. The log contains information on employees who are recipients of gift cards.
5. Accounting provides employee information to Tax Reporting as soon as it is available.
6. Tax Reporting forwards the information to Payroll and federal and state taxes are withheld.

Income Tax Withholding

Federal - US Nonresident Alien

IRS regulations require federal withholding taxes on payments made to a foreign person (individual or company). Generally, the non-resident alien withholding requirement is 30% unless the Internal Revenue Code stipulates a reduced rate or exemption based on U.S. tax treaty benefits. Sprintax Calculus software is used by Tax Reporting for the determination of federal income taxes.

Foreign entertainers or their agents may enter into Central Withholding Agreements with the IRS to reduce their withholding tax liability. Information concerning the withholding taxes and requesting a Central Withholding Agreement may be found at the .

Following is a list of IRS publications applicable to these regulations:

State - California Nonresident Alien

Certain supplier payments to non-California residents in excess of $1,500 per year require 7% withholding. This requirement applies to foreign suppliers and suppliers from other states in the U.S., but only for certain types of purchases. These types of purchases are likely to fall into one of two categories:

1. Payments made for services in California performed by either an individual or a company.
2. Royalties paid to an individual or a company. A “royalty payment” is the purchase of intangible property such as patents, a copyright (for scholarly articles, music scores, images of art, motion pictures or television episodes, etc.), trade names, and trademarks.

A nonresident supplier may request that income taxes be withheld at a lower rate (FTB Form 589) or waived (FTB Form 588) by sending the required form to the California Franchise Tax Board. A waiver will generally be granted when a supplier has a history of filing California returns and making timely estimated payments.

To complete these two FTB forms, the supplier must fill in information about ��ɫ����:

Business Name: California State University Long Beach, Tax Department

FEIN: 93-1150363
Phone: 562-985-4211
Fax: 562-985-7951
Address: 6300 State University Drive, Suite 332, Long Beach, CA 90815-4680

Form 588 Nonresident Withholding Waiver Request (PDF)
Form 589 Nonresident Reduced Withholding Request (PDF)

A supplier may appear to be a non-resident based on their payee address, but may actually have a place of business in California. Withholding is not required if a payee has a permanent place of business in California or is qualified through the California Secretary of State to do business in California. If the supplier is exempt from California income tax withholding for the reason described here, a completed FTB Form 590 must be submitted to ��ɫ����:

Form 590 Withholding Exemption Certificate (PDF)

A supplier may appear to be a non-resident based on their payee address but may actually have provided a service from a place of business outside of California (an example would be an on-line training). Withholding is not required on the whole or part of the amount billed for services when the services were performed from a place outside of California. If the supplier is exempt from California income tax withholding for the reason described here, a completed FTB Form 587 must be submitted to ��ɫ����:

Form 587 Nonresident Withholding Allocation (PDF)

Administration at ��ɫ����

1. The categories of purchases from foreign suppliers listed below require the . The following tax documents from the supplier must be attached to this form when submitted to the Tax Department for approval:
   • Services in the USA performed by individual: FNIF (PDF), Visa, Passport, Certification of Academic Activity (PDF) (if in the USA on travel or on a business visa), FTB form 587 (PDF) (optional if all of the services are performed in California or if purchases from this supplier are $1,500 or less in the calendar year) and other available documents (quote, proposal, etc.).
   • Services in the USA performed by company: , FTB form 587 (PDF) (optional if all of the services are performed in California or if purchases from this supplier are $1,500 or less in the calendar year) and other available documents (quote, proposal, etc.).
   • Royalties payable to individual: and FTB form 587 (PDF) (optional if supplier has a business situs in California* or if purchases from this supplier are $1,500 or less in the calendar year).

   • Royalties payable to company: and FTB form 587 (PDF) (optional if supplier has a business situs in California* or if purchases from this supplier are $1,500 or less in the calendar year).

     * Business situs in California is applicable when the intangible property was created in California or owned by a business in California.

2. Tax Reporting will assess the documents submitted and determine whether tax must be withheld and, if so, how much.
3. If tax withholding is required and a department wishes to absorb the cost of withholding, Tax Reporting should be informed, otherwise the supplier will be paid less than billed. If a purchase is made and it is later determined that withholding should have occurred, Tax Reporting will accrue the charge and notify the department.

Sales & Use Tax

General Discussion

In the State of California, public educational institutions such as the California State University, Long Beach, are subject to Sales or Use tax in the same manner and to the same extent as any other companies residing in California. Administration of these laws is through the California Department of Tax and Fee Administration (CDTFA), unless exempted by California Revenue & Taxation Code, regulations, court cases, rulings, and annotations.

Under California Sales and Use Taxation law, sales tax is imposed on retailers for the privilege of selling tangible personal property. California Revenue & Taxation Code § 6016, defines “tangible personal property" as “personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses.” Services generally are not taxable unless they are related to the sale of tangible personal property (for example, assembly or fabrication labor services). A sale occurs when title to, or possession of, tangible personal property is transferred to the purchaser or the purchaser's representative, for consideration. Sales tax should be included on all invoices unless the items ordered:

• Are indicated as being purchased for resale,
• Are indicated as being purchased for use in doctor prescribed treatment of medical patients (as performed in our student health center),
• Are indicated as being delivered (shipped) directly to an out-of-state address,
• Are otherwise specifically exempted from sales and use tax by the California Revenue & Taxation Code or California Department of Tax and Fee Administration.

How Sales Tax Applies to ��ɫ����

As a purchaser, ��ɫ���� pays sales tax to suppliers registered in California on all taxable purchases made in California, unless the item is purchased for resale. The vendor is responsible for remitting the sales tax collected to the State.

As a seller, ��ɫ���� charges sales tax on sales to California customers external to the CSU system. Sales between ��ɫ���� departments or between CSU campuses are not subject to sales or use tax since the departments and campuses are part of the same legal entity. ��ɫ���� is not usually a seller, so this situation does not occur often and, when it does, the amounts are not large. The following are some examples where ��ɫ���� is the seller:

• The university sells programs at commencement.
• A department sells merchandise such as t-shirts, books, CDs, and coffee mugs.
• An auction is held in connection with a fund-raising event. Artwork, gift baskets, other donated items, used equipment, etc., are sold at the auction.
• The university provides printing services to outsiders.
• The Health Center sells medications and supplies.
• The Fitness Center sells heart monitors.
• CPAC, Japanese Gardens, and the Art Museum sell souvenir items.

Partial Sales & Use Tax Exemption for R&D Property

A partial sale and use tax exemption for R&D equipment became effective on July 1, 2014. In general, to be eligible for the exemption, three conditions must be met: the purchaser must be a “qualified person,” the equipment purchased must be “qualified property,” and the equipment must be used for R&D in a specified research area.

Qualified Person Requirement

The account to which the equipment cost is charged must be a “qualified account”:

At ��ɫ����, the fund is the unit that will be assessed for qualification. To be qualified, at least 50% of the expenses charged to the fund must be related to research. Grants and Contracts funds beginning with the letter “G” are likely to be qualified funds.

Qualified Property and Use Requirements

The equipment must have a life of over one year and must be used more than 50% of the time to conduct original research in a qualified area.

Qualified research areas are generally the hard sciences and include Biotechnology, Agriculture, Electronics, Environmental, Biology, Botany, Computers, Chemistry, Food, Fisheries, Forests, Geology, Health, Mathematics, Medicine, Oceanography, Pharmacy, Physics, Veterinary and allied subjects.

The equipment must be used for research in California.

Partial Exemption Tax Rate

For qualifying equipment, 3.9375% of the regular sales and use tax rate is exempt. Effective 7/1/17, the regular rate in City of Long Beach is 10.25%. Therefore, the applicable rate for partially exempt equipment purchased for ��ɫ���� is 6.3125% (10.25% City of Long Beach rate minus 3.9375%).

Tax Reporting determines whether the partial exemption applies to a particular purchase. If you believe your R&D equipment purchase may qualify, please complete the Sales Tax Partial Exemption Checklist (PDF) and send it to Tax Reporting via email.

How Use Tax Applies to ��ɫ����

As a purchaser, ��ɫ���� accrues use tax and remits directly to the CDTFA in the following situations:

• On purchases from out-of-state vendors who are not doing business in California and who do not charge California sales tax.
• On purchases from in-state vendors who assess a rate less than applicable to the sale. This situation typically occurs when the vendor does not charge the correct district rate.

Administration at ��ɫ����

Invoices from Suppliers

If an invoice from a supplier, which should include sales tax, does not include sales tax, Accounts Payable adds the proper amount to the invoice. Data Warehouse will show an amount greater than the invoice as originally presented. The difference will be the additional tax.

PCard Payments

If a payment made through PCard should include sales tax, but does not, then Accounting will make a journal entry in the following month for the amount of the sales tax required.

For questions or additional assistance regarding California Sales and Use taxes, please visit the , or call the CDTFA at 1-800-400-7115.

Unrelated Business Income Tax (UBIT)

General Discussion

Although ��ɫ���� is exempt from income tax pursuant to Section 115 of the Internal Revenue Code, the University is required to pay Federal income tax on net income from activities deemed unrelated to the exempt mission of the University.

Three factors must be considered to determine if an activity is subject to unrelated business income tax. The activity must:

1. Be conducted as a trade or business: Includes any activity carried on for the production of income from selling goods or performing services.
2. Be regularly carried on: UBIT applies only to a business activity that is regularly carried on, as opposed to transactions that are sporadic or infrequent. An activity is considered regularly carried on if it is conducted with a frequency and manner comparable to the conduct of a similar activity by a taxed business.
3. Not be substantially related to the tax exempt mission of the University: To be taxable the activity must not be substantially related to the exempt mission of the University. The mission of a university is to develop knowledge through scholarship and research, to transmit knowledge through instruction, and to apply knowledge through public service.

Compliance at ��ɫ����

Form 990-T, Exempt Organization Business Income Tax Return, is filed annually by the CSU Chancellor’s Office. Each campus prepares a reporting package which, when combined with the reporting packages of all the campuses and the Chancellor’s Office, forms the basis for the system-wide filing.

Each year Tax Reporting reviews the revenue identified in the past as unrelated and seeks to identify any new unrelated revenue. During the preparation of the reporting package, between October and December each year, departments will be contacted for information regarding their unrelated income. The identification of unrelated revenue does not necessarily result in taxable income as applicable expenses are allocated in order to arrive at net income. The following are examples of unrelated revenue at ��ɫ����:

• Revenue from filming on campus.
• Revenue from passport services provided to persons who are not students, faculty, or staff of ��ɫ����.
• Space rental revenue to non-university entities for non-educational purposes at CPAC, the Pointe, and the CPIE Building.
• Revenue from summer conferences.

Tax paid on UBI (the tax is sometimes referred to as UBIT) is then allocated among the Campuses generating UBI, based upon the respective amounts of UBI generated by each Campus during the fiscal year for which the return is filed.

To learn more about Unrelated Business Income Taxes, please review .

Form W-9, Request for Taxpayer Identification Number and Certification

Form W-9 is prepared by Tax Reporting in January each year for the following entities:

• University
• Research Foundation
• 49er Foundation

The purpose of this form is to provide basic entity information about our organizations to those outside entities who pay money to us and to certify that we are not subject to backup withholding. Tax Reporting prepares a new form each calendar year. Our entity information does not change, but a newly dated form each year assures the individuals or organizations requesting our Form 990 that they are getting up-to-date information.

These forms can be found on our website under “Commonly Requested Tax Forms.”

Property Tax

General Discussion

The California State University is exempt from property tax. Types of property exempted include:

• Personal property — Movable property (any property that can be transported).
• Real property — Land or buildings (any permanent fixture or structure above or below the surface).
• Leased property (personal or real) — In accordance with section 202.2 of the California Revenue and Taxation Code, leased property used exclusively for educational purposes by a nonprofit institution like the University. Personal property includes any tangible property, such as copiers, computers, equipment or furniture.

If a department receives a property tax assessment notice or filing notice from the Los Angeles County Tax Assessor's Office, the notice should be forwarded to Tax Reporting. Types of notices include:

• Business property statement
• Joint consolidated tax bill
• Notice of tax lien
• Personal property tax notice

Possessory Interest

Although ��ɫ���� is exempt from property tax, there are 2 property tax related filings that Tax Reporting must make annually that are related to property tax.

• Lease Summary, Possessory Interest:

  Filed with the County of Los Angeles, Office of the Assessor. This report lists the names of entities that lease university space. All the vendors, like Wells Fargo and Panda Express and Starbucks, that lease space on our campus are listed. This information is used by the Assessor’s Office to bill these vendors for what is called “possessory interest.” A taxable possessory interest (PI) is created when real estate owned by a government agency is leased, rented, or used by a private individual or entity for their own exclusive use. The taxation of this interest is similar to the taxation of owners of privately owned property.

• Public School Exemption:

  Filed with the County of Los Angeles, Office of the Assessor. This report lists the space that the University rents off-campus for certain property, primarily vessels used by recreational sports clubs and athletic crew teams. To avoid a bill for property tax for these rentals, an exemption must be filed each year.