Windstar Update & Discussion

1. Windstar Update & Discussion Spring Finance Conference Greensboro, NC May 5, 2005

2. A Review of the Issue • The State of NC was out of compliance with federal tax withholding and reporting requirements for foreign nationals • OSC purchased the Windstar software to assist in tracking, withholding and reporting according to IRS rules • Based on survey responses submitted to OSC, 29 colleges were selected to receive the software on campus

3. A Review of the Issue (cont’d.) • User training was held 2/15-16 for the colleges receiving the software • Colleges receiving the software must establish policies and procedures for using Windstar • Colleges receiving the software must establish the internal workflow between Human Resources, Student Services and Accounts Payable

4. A Review of the Issue (cont’d.) • 29 colleges will be managed centrally through the system office and via the internet • Colleges managed centrally have submitted initial information and need training on the internet tool, FNIS (Foreign National Information System)

5. Colleges Managed Centrally • It is the college’s responsibility to gather all data to be tracked through Windstar • maintain copies of visas, I-9, and all other supporting documentation • Report that data through the web interface FNIS • use the FNIS Data Gathering Form to gather the information for input into the web interface. • Anytime a college identifies a foreign national to be compensated

6. FNIS Initial Setup • Complete the FNIS Information Spreadsheet and submit via email to the System Office to vanmetrek@nccommunitycolleges.edu • The System Office will set up the initial records and advise the agency contact via email to enter the data in FNIS

7. FNIS Information Spreadsheet

8. FNIS Data Gathering Form • Use this form to gather information for each foreign national employee, contractor, or vendor that must be tracked in the Windstar Tax Navigator • The information gathered on this form will be used to enter the data into the Foreign National Information System (FNIS) to be uploaded into Tax Navigator

9. FNIS Data Gathering Form

10. FNIS Data Entry • Access website fnis.windstar.cc/nccco

11. FNIS Data Entry

12. FNIS Screens

13. 5 Data Entry Screens • Basic Information • name, SSN, other ID#s • Individual Information • date of birth, marital status, dependents, telephone, fax, email, & date first entered US • Address Information • USA address, foreign address

14. 5 Data Entry Screens • Additional Information • passport & citizenship country, passport number & expiration, tax residence country, self-employment information, other yes or no tax questions • Visa/Immigration Status History • activity within the last three calendar years in a list format

15. Step 6 - Confirmation

16. Immigration Status Data

17. Immigration Status Data

18. FNIS Initial Setup (cont’d) • The college will print the data sheet, have it signed by the authorized signature and then submit the signed copy to the System Office • The data will then be loaded into Tax Navigator for the Substantial Presence Test (SPT) and any applicable forms will be generated • Any forms generated will be returned to the college via email for printing, signatures, and distribution

19. FNIS & Tax Navigator Processing • For each individual added to the system for tracking, initial payment information must to be submitted on the Foreign National Payments Form (Excel spreadsheet) • This form will be submitted by the college on a monthly basis to update the payment information in the Tax Navigator

20. Foreign National Payments Form

21. FNIS & Tax Navigator Processing • 1042S’s will be printed and sent to the college for distribution at the end of the year • A 1042S report will be electronically filed with the IRS in March of each year

22. Next Steps • Further define policies, procedures and forms • all parties - students, employees, vendors, college contacts, college authorizations • Obtain all FNIS Information spreadsheets from all colleges managed centrally • Set FNIS training dates for colleges managed centrally • Address training needs and other concerns of the colleges with the software on campus

23. Next Steps • Establish ways to monitor compliance by the 29 colleges with the software on campus • Verify IRS Transmitter Control Codes • System Office must acquire a TCC via Form 4419 for the 29 colleges managed centrally • Colleges with the software on campus must obtain a separate TCC for filing Form 1042-S

24. Discussion Questions & Answers