Purpose
1042-S Foreign Person's U.S. Source Income Subject to Withholding

Prerequisites
NRCT processing. Please refer to the IMG forconfiguration.

Selection

Required Fields:
Tax Year, Taxpayer Identification Number.

For paper form:
Required Fields:
Generation of 1042-S paper form.
Smart Form or PDF Form
Optional Fields:
Interactive Mode
Print letters in upper case
Round to whole dollar amount

For electronic transfer:
Required Fields:
Generation of a file for 1042-S
Logical file name: can be maintained by transaction FILE.
File type
Transmitter Control Code TCC
Agent's Phone Number
Contact Name
Contact Telephone Number
Optional Fields:
Test File output only: this option is for return of the test file.,,

Output
If you choose the paper form, the system will generate all the fieldsand print at the positions according to the paper format from IRS. Inaddition, you can select either of the following formats:

• Smart Form


• PDF Form

If you choose the tape format, the system will generate a text file withthe format mandated by IRS.
After final process, a statistic report will also be displayed. Youcan look for yellow and red icons for warnings and errors, and correctall the incorrect information.

Some assumptions for this report.

Paper Format:
* 1. No multiple states handling.
* 2. One tax company per employee.
* 3. Always space in boxes 3, 4, 8, 11, 17, 18, 19, 20, & 21.
* 4. Always checked EIN in box 9.
* 5. Always fixed recipient code '01' in box 12.
* 6. State tax is reported only when the EE has state /PTX.
* 7. Checkboxes for reporting type (void, corrected, pro-data basisreporting) are always space.
* 8 Transmitter agent, the withholding agent, the payer and theemployer are the same entity.

Electronic Transfer:
* 1. Unknown recipient is not supported.
* 2. Only income code 15, 17, 18, 19, and 50 are supported.
* 3. T(117-118) Province Code is blank.
* 4. T(119-120) Country Code is blank.
* 5. W(3) Pro Rata Basis Reporting is always 0
* 6. W(13) Withholding Agent's EIN Indicator is always 1.
* 7. W(256-257) Withholding Agent's Province Code is always blank.
* 8. W(258-259) Withholding Agent's Country Code is always blank.
* 9. W(293) Final Return Indicator is always 0.
* 10.Q(3) Pro Rata Basis reporting is always 0.
* 11.Q(18-29) Withholding Allowance is always blank.
* 12.Q(30-41) Net Income is always blank.
* 13.Q(60-71) Amount Repaid is always blank.
* 14.All NQI/FLW-THR related entries in Q are blank.
* 15.The output device has to be a PC.