Form 673 Exemption From Federal Tax Withholding

  1. Faculty / Staff fills out Form 673 and sends it to Human Resources.
  2. Human Resources hands Form 673 to Tax Office for review.
  3. Tax Office includes ID, Name, Country, Citizenship, Dates abroad on Faculty Abroad Spreadsheet and sends it along with set-up instructions to Human Resources and Payroll. Human Resources receives original Form 673.
  4. If U.S. citizen / greencard holder,
    1. change FED/State code to Waived starting first day of first payroll outside of country and ending Waived status on last day of last payroll outside of country. W-4 stays in effect, thus Active status as of first day of first payroll back in country should reflect old W-4 set up.
    2. In addition, change VUI from 01 (in state) to OS (out of state) and then set it up to change back back to 01 per above payroll dates.
    3. If U.S. citizen / greencard holder did not work before for the College and or will move to country for a long period (mostly Schools Abroad personnel), set up SVT as exempt and do not set up other State deduction code unless specifically requested by person - check first with payroll whether Middlebury College is registered in that state.
  5. If foreign national
    1. If resident alien for tax purposes, proceed as above.
    2. If nonresident alien, set up FED, FSS, FME, SVT to exempt and VUI to OS.
  6. Payroll includes person in W-2 due diligence at year-end.