[Plsfaculty] FW: Employee Related Expenses (ERE) for Non-Resident Aliens (NRA)

[Donna-Rae Marquez]

Hello All,

The University as of 10.01.09 will no longer apply a lower ERE rate to the
UA employees on J1 visa's who are employed in the Appointed Personnel
category with a lower ERE rate.  Therefore, all of those employees who are
on J1 visa in the Research Associate or Assistant Research Scientist
category you will be access the full ERE rate of 27.3% versus the 20.10%.   

But, for those employees on J1 visa who are employed as PostDoctoral
Scholars the ERE rate will be 20.10% because this category of employee does
not participate in the State retirement system and their vacation accruals
do not role over.

Please let me know if you have any questions.

Cheers
Donna-Rae

Donna-Rae M. Marquez
Manager, Business & Finance
School of Plant Sciences
The University of Arizona 
Forbes 303B
Tucson, Arizona 85721
520.621.8689 Telephone
520.621.7186 FAX

-----Original Message-----
From: Payroll News and Information [mailto:PAYNEWS at LISTSERV.ARIZONA.EDU] On
Behalf Of Meyer, Michelle
Sent: Friday, September 11, 2009 1:27 PM
To: PAYNEWS at LISTSERV.ARIZONA.EDU
Subject: Employee Related Expenses (ERE) for Non-Resident Aliens (NRA)

Subject: Employee Related Expenses (ERE) for Non-Resident Aliens (NRA)

In most instances, Non-Resident Aliens (NRA) are exempt from paying Social
Security Taxes (FICA) because of their ineligibility to collect social
security benefits. The published Employee Related Expense (ERE) rates have
always factored these exemptions into the applied rates.

Previously, departments would request differentiation and omission of the
FICA ERE portion for those NRA's which were FICA exempt, creating an
inconsistency in the application of negotiated ERE rates.  With the
implementation of PeopleSoft, all employees in this grouping will be
assessed the full ERE rate as required for compliance with our federally
approved ERE rates.

The Employee Related Expense Agreement is negotiated and approved by the
Federal Government and any practice that unduly affects this agreement could
affect the direct charging of ERE to federal grants and contracts. This
practice and any other negotiations of ERE rates with departments will no
longer be permitted due to these compliance requirements.

Please plan accordingly and if you have any questions please call Ms. Denise
Dellinger in the Financial Services Office at 626-2718.