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G-4 Sponsor Responsibilities

RESPONSIBILITY TYPE WORLD BANK STAFF IMF STAFF OAS STAFF
Allowed wage payment METHODS Bank Check or Direct Deposit Only Bank Check or Direct Deposit Only Bank Check or Direct Deposit Only
Allowed payment FREQUENCY Weekly or Bi-weekly ONLY Weekly or Bi-weekly ONLY Weekly or Bi-weekly ONLY
Room & Board Deductions allowed? NO NO NO
G-5 must have medical insurance. Who pays? 100% Employer Either Employer or Employee, per signed contract. 100% Employer
Are time cards required? YES YES YES
Payroll Records subject to audit? Yes, 100% Yes, random Yes, random
Paid Time Off? Negotiated per contract Negotiated per contract Minimum 2 weeks

 

Regulations applying to ALL G-4s sponsoring G-5 staff, per the US State Department and US employment and tax laws

  • The G-4 sponsor is the ONLY person who may employ the G-5. Be very careful to have ALL tax accounts established in the G-4 sponsor’s name ONLY.
  • The G-4 sponsor and the G-5 domestic must enter into a formal approved work contract.
  • The G-5 must be paid for a minimum of 35 hours work per week for every week the G-5 is physically present in the U.S. and able to work. This means if the sponsor is on holiday and the G-5 remains in the U.S., s/he must be paid.
  • The G-5 must be paid a minimum of the  Federal,  state or locality minimum wage, whichever is greater.
  • The G-4 sponsor must pay the G-5 for every hour they are required to remain on the premises.
  • The G-4 sponsor must immediately report the dismissal of the G-5 to the sponsoring organization.
  • The wages paid to G-5 domestic are subject to U.S. payroll and income taxation. The G-4 sponsor is required to report and remit all U.S. payroll taxes.
  • The G-4 sponsor may not withhold the G-5’s passport or any personal property.
  • The G-4 sponsor may not require the G-5 to remain on premise outside work hours
  • Upon visa renewal for the G-5, the consular offices may require that prior compliance with U.S. tax laws be established. This would involve U.S. income tax returns and W-2 Wage and Tax Summaries for each year the G-5 was working in the U.S.

NGO Sponsoring Organizations Audit G-4 Compliance. Why?

According to the US State Department, 9 FAM 41.21 N6.6, “The Secretary of State shall suspend, for such period as the Secretary determines necessary, the issuance of A-3 visas or G-5 visas to applicants seeking to work for officials of a diplomatic mission or an international organization, if the Secretary determines that there is credible evidence that one or more employees of such mission or international organization have abused or exploited one or more non-immigrants holding an A-3 visa or a G-5 visa, and that the diplomatic mission or international organization tolerated such actions.”

Sponsoring organizations such as the World Bank, IMF and OAS have implemented procedural safeguards to insure proper wage payment and tax compliance on the part of BOTH the G-4 sponsor and the G-5 domestic. Fees are imposed on the G-4 sponsor by their host organization to offset audit expenses. These fees are waived if the G-4 subscribes to a household payroll service.

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