Payroll and Taxes
Getting paid
One of the most important questions you might have is, “When and how do I get paid?” The following information answers that question and other questions related to your salary. We also provide additional information regarding taxes in the United States.
When do I get paid?
When you get paid depends on your payroll employer. In most cases, your employer is the school district for which you work. Some employers offer a semi-monthly or twice-a-month payroll. Others offer monthly payroll, to be paid at or near the end of each month. Additionally, some employers offer a choice between a 10-month (school year) pay period and a 12-month (fiscal year) pay period.
If you do not start on the first day of school for teachers, or if your contract terminates before the last school day for teachers, your annual salary will be deducted on a per-day basis for the number of school days missed, as indicated in the Participate Learning Educator Agreement.
How will I be paid?
To be paid by your employer, you must complete the required paperwork and tax forms at Participate Learning orientation. A Participate Learning staff employee will explain the tax and payroll forms during the payroll and tax presentation.
Generally, your paycheck will be directly deposited into your bank account if you have provided all the information requested for direct deposit. Failure to provide Participate Learning and your school district with your Social Security number (once you have received it) as well as a voided check could cause a delay in the issuance of future paychecks.
If you choose not to keep the bank account that Participate Learning opened for you at Participate Learning orientation and you open a different bank account, please call Human Resources at (919) 265-5137 for additional instructions and information so Participate Learning can properly record this information. To ensure you are paid promptly you should provide both Participate Learning and your school district with a copy of a voided check or bank letter any time you change your bank account.
Your paycheck is comprised of your gross wages, minus any taxes or deductions that are withheld (for example, a Participate Learning Relocation Payment repayment). Keep all paycheck stubs as it is your responsibility to verify the accuracy of your paycheck.
You should ensure that your employer is deducting for the Participate Learning Relocation Payment from your paycheck. Participate Learning provides you with the payment to assist with your initial expenses upon your arrival in the United States, and it is offered each year of your participation.
Your school district is responsible for deducting the payment from your paycheck throughout the school year in most cases. Failure to notify your school district of an error in deducting the payment could result in you having to repay the loan over a shorter period of time, resulting in larger deductions from your pay.
Paid Time Off (PTO)
Paid Time Off (PTO) is determined directly by your school district. Please address all questions concerning PTO, including sick time, to your principal in accordance with the procedures of your school district.
Taxes
All US. residents (including visiting international teachers such as yourself) pay taxes on money they earn, prizes they win and purchases they make at stores and restaurants. You will be responsible for many of these taxes while you are in the United States.
Generally, Participate Learning teachers are required to pay both federal and state income taxes on their gross income earned while in the U.S. The amount of tax required varies based on the total amount earned. Each individual is solely responsible for paying his or her own taxes and filing the necessary forms.
Participate Learning’s role as a visa sponsor is limited to providing you with general information about the taxation of J-1 teachers in the U.S. Each individual’s situation will vary. We cannot provide tax or legal advice and you may need to consult a qualified professional for specific questions regarding your tax obligations.
Taxes deducted
You may have up to four different taxes deducted from your paycheck: Federal Income Tax, State Income Tax, Social Security Tax and Medicare Tax (FICA).
Federal and state income taxes
Generally, Participate Learning teachers are required to pay both federal and state income taxes on their gross income earned while in the United States.
The amount of tax required varies based on the total amount earned. For an estimate of what you might pay in taxes, visit the personal calculator at https://www.paycheckcity.com/calculator.
While some information on exceptions and exemptions is outlined here, Participate Learning is unable to serve as a tax advisor. Please consult a professional tax advisor if you have any tax-related questions.
FICA: Federal Insurance Contributions Act
FICA tax is the combination of two taxes: Social Security and Medicare. FICA tax is 7.65% of your gross pay and is withheld and matched by your employer.
The FICA tax (Federal Insurance Contributions Act) is an employment tax paid by citizens, tax residents, and nonresidents of the U.S. to fund federal programs for retirees, disabled, and children of deceased workers. It is a combination of the Social Security tax and Medicare tax. The FICA tax rate is 7.65% of your salary, is matched by your employer, and will be automatically deducted from your paycheck.
FICA exemptions
If you are a teacher temporarily in the United States as a non-resident in J-1 visa status, you may be exempt from paying FICA tax until January of your second school year with Participate Learning, provided you complete and submit the appropriate form with your annual tax return.
The U.S. government allows such an exemption for two calendar years, or any part of two calendar years (not school years). Thus, many initial-term Participate Learning teachers will not have FICA withheld from their paychecks until January of their second school year.
If you have been in the United States for any part of two out of the last six years as an “exempt individual” in F, J, M or Q status, you may not be eligible for the exemption and FICA may be withheld from your paycheck immediately.
In order to claim the “exempt person” status, you must complete and submit Form 8843 (Statement for Exempt Individuals) with your annual income tax return for the years you are exempt from FICA taxes. This form is available from the Internal Revenue Service (IRS). Visit www.irs.gov to download the form.
Forms
Forms you’ll complete at Participate Learning orientation
You will complete the forms listed below and give them to a Participate Learning staff member before leaving Participate Learning orientation. Participate Learning will submit these forms to your school district on your behalf. Your school district may also ask you to complete these forms during your school’s new teacher orientation. Let them know that you have already completed these forms (with the exception of the Form I-9, which will need to be completed again at your school district office).
Form I-9: Employment Eligibility Verification
All U.S. workers, citizens and noncitizens, must complete this form at the time of hire in order to verify eligibility to work in the United States. You (the employee) and your employer must sign this form. In order for your employer to sign Form I-9, your employer will need to review the following documents:
- Your DS-2019 form.
- Your passport.
Failure to complete Form I-9 promptly could result in a delay in your being allowed to work in the United States.
Federal Form W-4: Federal Employee’s Withholding Allowance Certificate
Complete a Form W-4 so the proper amount of federal income tax will be withheld from your paycheck. A Participate Learning staff member will give you a Form W-4 to complete at Participate Learning orientation. It is important to fill out the Form W-4 properly, or you may have to pay extra taxes when you submit your annual income tax return (due each year for most people by April 15).
State Form: Employee’s Withholding Allowance Certificate
Complete the state withholding form applicable for the state in which you will be teaching. This form is very similar to the W-4 but is used to calculate the correct amount to withhold for state income tax.
Forms that will be sent to you by your employer following the end of the calendar year
Form W-2 – Wage and Tax Statement (if applicable)
This form shows your total earnings and the amount of taxes withheld for the previous calendar year. It is issued by your employer no later than January 31 of each year. A copy of the form is also sent to the U.S. federal government and to the state government in which the wages were earned. You will use the information on this form to complete your annual federal and state income tax return.
Forms that you will complete and submit to the Internal Revenue Service (IRS) each year
Form 1040 — U.S. Individual Income Tax Return (for Resident Aliens) or 1040NR – U.S. Individual/Nonresident Alien Income Tax Return (for Nonresident Aliens)
This is the basic form used to file a federal tax return.
Form 8843: Statement for Exempt Individuals
This form is used in addition to the 1040 or 1040NR by teachers who are exempt from FICA taxes in order to claim the “exempt person” status. You can obtain this form from the IRS website at http://www.irs.gov/ or from a professional tax advisor. Complete and submit this form with your annual income tax return for the years you are exempt from FICA taxes.
International agreements
Social Security agreements
There are approximately 20 countries that have Social Security agreements, often called “Totalization Agreements”, in place with the U.S. Social Security Administration to help to coordinate the U.S. retirement program with comparable programs in other countries. Social Security agreements do not exempt you from paying FICA.
If you are from a country with an agreement in place, and you meet the minimum eligibility requirements, you may be eligible to receive credit in your country for the contributions you make to the U.S. Social Security program. For additional information on Social Security and the countries that have Totalization Agreements, refer to the Social Security Administration’s website: www.ssa.gov.
Tax treaties
Some countries have a bilateral income tax treaty with the United States that may minimize or eliminate the possibility of double taxation (when you must pay taxes in both the United States and your home country) for Federal income tax and in some cases, State income tax.
Each treaty that offers an exemption varies as to the time period of exemption and eligibility requirements. Note that many countries have provisions that deny benefits if the requirements are not met. Participate Learning does not offer advice as to whether a teacher will qualify for any specific exemption or treaty, and thus each teacher is responsible for determining his or her own eligibility. We strongly encourage anyone who thinks they may be eligible to receive tax treaty benefits to consult the advice of an experienced tax professional.
Filing your tax returns
All teachers must file a federal and state tax return for each year that they take part in the Participate Learning program. Filing your taxes refers to the annual filing or submission of tax paperwork, also known as your annual tax return, to the U.S. federal and state governments.
What happens if I don’t file?
Just because your employer has withheld tax from your wages does not mean that you have paid the proper amount. You could have a refund due, or you may owe money. The terms of your visa require you to comply with all laws of the United States, including the requirement to file an income tax return. You might be required to show proof that you filed if you wish to regain entry into the United States once you have left. Don’t risk your visa status by failing to comply with this requirement.
When do I need to file?
If you received wages subject to U.S. tax withholding, the due date for filing your tax return is April 15 of the following year. If you did not receive taxable wages during the year, the due date for filing your tax return is June 15 of the following year. See IRS Publication 519 for more information.
Important tax dates and actions
- Arrival date: Complete forms at Participate Learning orientation.
- January 1: Complete new Form 8233, if applicable.
- February 15: Obtain Form W-2 from employer, if applicable.
- April 15: File federal income tax return, Form 1040 or 1040NR, Form 8843 (if applicable), and required state income tax return as applicable.
- May 15: Notify employer of intent to depart by July 1.