Non US Citizen Requirements
Payments to Non US citizens are subject to a 30% income tax withholding unless a lower rate applies. In order to determine if a lower rate applies, we need documents from the payee. If the payee does not complete the forms and, if necessary, provide the documentation requested in the form, we will be required to withhold 30%. These rules apply to all types of payments including services (employment, independent contractors, entities); royalties and licenses, prizes and awards, scholarships and fellowships and gifts.
Service providers that are employees of the university are paid through payroll. Questions on the requirements related to payroll can be addressed to email@example.com.
The documentation required for service providers who report the income from services on an individual tax return varies based upon the tax status of the individual as well as where the services are performed. The department is responsible for requesting Independent Contractor approval AND communicating to the provider the requirements for Non US Citizens. All academic and administrative units are required by policy to notify HR prior to contracting with any individuals both inside or outside the United States. Individuals from units that engage in services with an independent contractor, whether inside or outside the United States, without engaging in this process may be personally liable for any payments due.
Non-US citizen is a permanent resident/greencard holder
A Non-US citizen who is a Permanent Resident (also known as "greencard holder") is treated like a US Citizen. There is no withholding but the payment will be 1099 reportable if the amount reaches $600 in the calendar year. The permanent resident/greencard holder may either provide a copy of the front of the greencard or provide a Form W9. Documentation is provided through the PaymentWorks account.
The Non-US citizen is performing services inside the United States
A Non-US citizen performing services inside the United States may be subject to withholding if the individual is considered a non-resident alien. In order to determine the tax status, the individual needs to complete a Foreign Visitor Form. The form is an excel file and it must be signed (not typed) and uploaded into payment works as a picture or .pdf file in the place of providing a W-9/W-8 form. If the provider cannot locate where to upload the form, please e-mail firstname.lastname@example.org for assistance with submission of the completed form in PaymentWorks. 30% withholding will be required unless the form shows that the individual is a resident alien or the individual has a US social security number/ITIN AND timely provides a properly completed tax treaty form.
The Non-US citizen is performing services outside the United States
A Non-US citizen performing services outside the United States is not subject to withholding. The service provider must upload documentation into PaymentWorks to attest to the services being rendered outside the United States. The provider has many options for documentation that the services are rendered outside of the United States, including where the services will be rendered in the signed agreement, on the invoice, in a letter signed by the provider, or by completing the TINC Form (though this duplicates information that will also be entered into PaymentWorks).
- Forms for non-U.S. citizens - These forms used by Accounts Payable for payments made to vendors and other payees who are Non-U.S. Citizen individuals, partnerships and entities.
- Request for Taxpayer Identification Number and Certification (TINC) - (OUTSIDE) For Payments to non-individuals and individuals who do not have presence in the United States
- U.S. Permanent Residents (green card holders) are asked to provide a copy of the green card. Alternatively, permanent residents may provide an IRS Form W9 to establish tax residency in the U.S.
- Foreign Visitor Information Sheet - (INSIDE U.S) For individuals who are visiting the U.S. and receiving any payment or reimbursement
- International Student Tax Information Form (Docu-sign)
- GSS International Student Tax Information Form (ps://bit.ly/2Ma8nuV