Foreign national employees on a F, J, M, and Q visas that pass the Substantial Presence Test throughout the year are considered resident aliens for tax purposes. These employees should appear in the weekly RA Report and will be processed by central HR through a HRFE transaction.
During the year-end processing, employees on F, J, M, and Q visas who have a change in tax residency status from Nonresident Alien (NR) to Resident Alien (RA) effective January 1, 2024, are required to participate in the State Universities Retirement System (SURS) as long as requirements are met.
An employee who is eligible and enrolled in SURS and who maintains an appointment of 50 percent time or greater measured over the 9-month academic year is also eligible for state-sponsored health, dental, vision, and life insurance benefits. A valid social security number is required for the employee to be eligible for CMS insurance.
Employees on F, J, M, and Q visas who have a change in tax residency status from Resident Alien (RA) to Nonresident Alien (NR) effective January 1, 2024, based on the Substantial Presence Test, are no longer eligible to participate in SURS. Insurance coverage for employees who lose SURS eligibility will have their employee and dependent coverage end at midnight on December 31, 2023.
After CMS receives notification of an employee's termination, they mail a COBRA offer letter to the employee's home address on file, along with a rate sheet showing the premiums. The COBRA premium includes the employee and state cost plus a 2 percent administrative fee. COBRA will allow a temporary extension to health, dental, and vision coverage for an employee and any dependents enrolled.
