Transcript Contracted Services - Texas State University

Payment Requirements for
International Employees and
Independent Contractors
Jon Ahlberg – International Office
Robert Seese – International Office
Sally Moss – Office of Payroll & Tax Compliance
LynnAnn Brewer – Human Resources
Marcy Young – Office of Payroll & Tax Compliance
International Students
Robert Seese
International Office
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Who is an international student?
• An international student is a student who enrolls
in a U.S. academic program and whose status is
non-immigrant. Common non-immigrant statuses
are A-1, A-2, B1, B-2, E-1, E-2, F-1, F-2, H-1, H-4, J1, J-2, L-1, L-2, M-1, R-1 and R-2. F-1 is the most
common status used by international students. A
student who has applied for or received
permanent residency, refugee status or asylum in
the U.S. is not considered to be an international
student by the U.S. Citizenship & Immigration
Services (USCIS).
International students at Texas State
Fall 2012
Total International
Students: 375
• F Visa
• Other Visa
325
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International Students
On-Campus Employment
• F1/J1 students can engage in on-campus
employment
• Limited to part-time (20 hrs max) during fall
and spring
• Full-time during summer, winter, and spring
breaks if not taking classes. If taking classes 25
hrs/wk.
What on-campus employers should do
• Provide a job employment letter for the international student that meets
the Social Security Office requirements.
• Information given to hiring entity by the International Office:
Note to hiring office, department, or program: The content and format of the
letter on the following page were dictated by the San Marcos Social Security
Office. Based on your letter, our office will generate a second letter.
The student will take both letters to the San Marcos Social Security Office to
apply for an SSN and be issued an application receipt. Note that these letters
are not accepted at Social Security Offices outside of San Marcos. It may take
a week or two for the SSN to be generated and the card mailed to the student.
However, after presenting all hiring paperwork to the Payroll Office, including
the application receipt provided by the Social Security Office, the student will
be allowed to start work. The contact person in the Office of Payroll & Tax
Compliance is Sally Moss, [email protected] or 245-8310.
Job Offer Letter Template Form
(Must be on Texas State University letterhead)
[Date]
Texas State University International Office:
The [office/department/program] of Texas State University, has hired international
student, [name], for the position of [ ], beginning [exact date -- not just the
semester]. The student’s immediate supervisor, [name], can be contacted by
phone at [ ] or by email at [ ]. Please issue the student a letter to present to
the Social Security Office to apply for a Social Security number.
Sincerely,
[supervisor or administrative staff person]
www.international.txstate.edu
What the student should do
1) Secure a job offer letter from the on-campus
employer.
2) Request a proof-of-enrollment letter from the
International Office. Student should submit
the request along with the job offer.
3) Request a SSN through the Social Security
Office.
Student Employment - Q & A
• How long does it take the International Office (IO) to issue the proof-ofenrollment letter?
In most cases the IO can issue the letter on the spot.
• How soon after they apply for the SSN can the student start working?
They can start working as soon as they give Sally Moss at the Office of
Payroll & Tax Compliance their application receipt from the SS Office.
• Who can sign the job offer letter?
Your Administrative Assistant or any other full-time staff in your office or
department can sign the job offer letter needed for the SSN.
For more information visit our website at www.international.txstate.edu
Contact Information
• 601 University Drive, Hill House
• Phone: 512-245-8988
• Email: [email protected]
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J-1 Exchange Visitors
Robert Seese
International Office
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J-1 Exchange Visitor Program
“The U.S. Department of State administers the
Mutual Educational and Cultural Exchange Act
of 1961, as amended. The Act promotes
mutual understanding between the people of
the United States and other countries by
means of educational and cultural exchange.
The Exchange Visitor Program provides foreign
nationals with opportunities to participate in
exchange programs in the United States and
then return to share their experiences.”
J1 Exchange Visitor Program Cont’d
Qualified Foreign nationals under this status can
engage in research, teaching, lecturing,
observing, or consulting at research
institutions…educational institutions, or
similar types of institutions in the United
States. The intention of this program is that
EVs return to their home country upon
completion of the program.
The Most Common Categories
• Professor- primary activity: teaching
• Research Scholar-primary activity: research
Both of these categories may have program
lengths of up to five years
• Short-term Scholar -activities can be teaching
and/or research.
The maximum stay for this category is up to 6
months and is ideal for a repeat program that
may occur once per year for several years.
Restrictions
• One year bar-If the EV was in the U.S. in J
status for over 6 months the EV must return to
the home country for at least one year before
beginning a new J-1 program.
• Two-Year Home-Country Residency
Requirement-Some EVs must remain in their
home country for a minimum of 2 years
before beginning a new J-1 program; waivers
are possible, but limited
What department should do.
1. Request DS-2019 fill in form and accompanying
J-1 information
2. Sponsoring professor sign and return form and
attachments to Bob Seese at the International
Office
3. Pick up the completed DS-2019 form with
accompanying information from the
International Office
4. Send the DS-2019 and accompanying
documentation to the prospective EV.
What the prospective J-1 Exchange
Visitor should do
1. Receive the DS-2019 and accompanying
documents from the sponsoring department.
2. Follow the instructions regarding payment of
the SEVIS fee and applying for a J-1 and J-2
visas.
3. Arrive at Texas State and make an
appointment and orientation with Dr. Seese
within 20 days of the program start date
indicated on the DS-2019.
J-1 Exchange Visitors Cont’d
(3 cont’d) At the appointment/orientation:
-provide all DS-2019s, Passports, I-94 Cards
-provide proof of medical insurance for yourself
and any dependents
-provide local home address, phone number and
email address
J-1 Exchange Visitors Cont’d
4. Only work in and for the sponsoring
department(s) that requested your DS-2019
and invited you to Texas State or other
institutions listed on the DS-2019.
5. J-2s (dependents of J-1s) may apply for work
permission to work on or off campus. Income
from work must not be required for support of
the J-1 and J-2(s)
J-1 Exchange Visitors Cont’d
6. Leave the U.S. within 30 days of your program
end date or the program end date on your DS2019, whichever is sooner.
Occasional Lectures or Consultations
• J1s can lecture or consult at institutions not listed on
the Form DS-2019 if his or her Responsible Officer
issues a written authorization of such activity. Such
written authorization must be attached to the
participant's Form DS-2019.
• If wages or other remuneration are received by the
exchange visitor for such activities, the exchange visitor
must act as an independent contractor, as such term is
defined in 8 CFR 274a.1(j).
• It is best to plan the program ahead of time and
include information related to these visits on the DS2019, if possible.
J1 Exchange Visitor Employment – Q & A
Contact Information
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Robert Seese
Director of International Office
601 University Drive, Hill House
Phone: 512-245-7966
Email: [email protected]
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H1-B Temporary Worker and Specialty
Occupation Workers
Jon Ahlberg
International Office
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H-1B Temporary Worker
&
TN NAFTA Professional
What is an H-1B?
• The H-1B is a nonimmigrant classification used by
a foreign national who will be employed
temporarily in a “specialty occupation.”
• A specialty occupation requires theoretical and
practical application of a body of specialized
knowledge along with at least a bachelor’s
degree or its equivalent.
• H-1B employees may only work for the
petitioning U.S. employer and only in the H-1B
activities described in the petition.
How does one apply?
• The employer must file a Labor Condition Application
(LCA) with the Department of Labor attesting to several
items, including payment of prevailing wages for the
position, and the working conditions offered.
• The employer then files a form I-129 Petition for a
Non-immigrant Worker with U.S. Citizenship and
Immigration Service (USCIS).
• If the foreign national is already in the U.S. in a
different status, the approval of the I-129 constitutes a
change of status to H-1B. If the foreign national is
outside the U.S., then they may apply for an H-1B visa
for entry.
When to begin
• Before hiring a foreign national for any position,
departments should first contact the
International Office to assess the appropriate
employment authorization. In addition, due to
U.S. government regulations regarding wage
requirements, departments must work in close
consultation with the International Office and
Faculty Records before finalizing salary and terms
of contract with an international prospective that
requires processing H-1B employment
authorization.
What the department does
• Consult with the International Office and Faculty
Records to hire a foreign national with H-1B
employment authorization
• Complete the LCA and Actual Wage worksheets
provided by the International Office and return to
the International Office
• Meet prevailing wage requirements
• Review, sign and certify appropriate documents
as provided by the International Office
What the International Office does
– Submits wage documents to the Texas Workforce
Commission
– Submits the Labor Condition Application to the
Department of Labor
– Prepares and posts LCA notices
– Prepares the petitioning letter, application forms I-129 and
I-129W
– Prepares memos for check issuance and picks up check
from Accounting
– Overnights the H-1B petition to the US Citizenship and
Immigration Services (USCIS)
– Notifies the "contact" person named on the worksheet
when the petition is receipted and approved by USCIS.
How much does it cost?
• The cost for H-1B authorization from USCIS is $320, in
addition to a Fraud Prevention and Detection fee of
$500. These fees have to be paid by separate checks to
the Department of Homeland Security. USCIS views
this cost as an "employer's expense of doing business",
and it is regularly paid by our departments and schools
at Texas State.
• To arrange payment of these fees, the department
needs to submit a TXST Payment Request (Form #AP-1)
to Accounting along with a memo of explanation from
the International Office.
How long does the process take?
• Internal processing time for submission of H-1B
petitions is usually three or more weeks once all
documents have been received by the IO
• USCIS adjudication time ranges from two to seven
months
• For an additional $1000, USCIS will expedite the
adjudication within two weeks. This is known as
Premium Processing and can be requested either
at the initial submission of the petition or at any
time thereafter if necessary
How long can a foreign national be
employed in H-1B status?
• Under current law, a foreign national can be in
H-1B status for a maximum period of six years at
a time. After that time, they must remain outside
the United States for one year before another
H-1B petition can be approved.
• If the employee is dismissed from employment
before the end of the period of authorized stay,
the employer is liable for the reasonable costs of
return transportation of the employee abroad.
When must wages to the H-1B
employee begin and for how long?
• In the case of an H-1B non-immigrant for whom a
petition has been approved but who has not yet
begun employment, the employer's obligation to
pay the required wage begins no later than thirty
days after the worker is admitted to the U.S. in
H-1B status, or sixty days after the person
becomes eligible to work for the employer if he
or she is already present in the U.S. at the time of
petition approval. The employer is required by
law to pay the stated salary to the employee until
the end of the H-1B authorization.
TN NAFTA Professional
• NAFTA is the North American Free Trade Agreement. It
creates special economic and trade relationships for the
United States, Canada and Mexico. The nonimmigrant
NAFTA Professional (TN) visa allows citizens of Canada and
Mexico, as NAFTA professionals to work in the United
States. The requirements for applying for citizens of Canada
and Mexico are different.
• The maximum period of admission into the U.S is one
year. The US Citizenship and Immigration Services (USCIS)
grants extensions of stay in time amounts of one
year. There is no limit on the number of years a TN visa
holder can stay in the United States. However, the TN visa
status is not for permanent residence.
Qualifications
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Applicant is a citizen of Canada or Mexico;
Profession is on the NAFTA list;
Position in the U.S. requires a NAFTA professional;
Mexican or Canadian applicant is to work in a
prearranged full-time or part-time job, for a U.S.
employer. Self employment is not permitted;
• Professional Canadian or Mexican citizen has the
qualifications of the profession
• Additionally, as nonimmigrants, applicants must
demonstrate that their stay is a temporary period that
has a reasonable, finite end that does not equate to
permanent residence.
Requirements for Canadian Citizens
• Canadian citizens usually do not need a visa as a NAFTA Professional,
although a visa can be issued to qualified TN visa applicants upon
request.
• A Canadian citizen without a TN visa can apply at a U.S. port of entry
with all of the following:
• Request for admission under TN status to Department of Homeland
Security, Customs and Border Protection, U.S. immigration officer;
• Employment Letter - Evidence of professional employment. See
Employment Letter below;
• Proof of professional qualifications, such as transcripts of grades,
licenses, certificates, degrees, and/or records of previous employment;
• Proof of ability to meet applicable license requirements;
• Proof of Canadian citizenship- Canadian citizens may present a
passport, as visas are not required, or they may provide secondary
evidence, such as a birth certificate. However, Canadian citizens
traveling to the United States from outside the Western Hemisphere
are required to present a valid passport at the port-of-entry;
• Fee of U.S. $50
Requirements for Mexican Citizens
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Mexican citizens may apply at consular sections around the world for a NAFTA professional
(TN) visa. As part of the visa application process, an interview at the embassy consular
section is required for most visa applicants. Interviews are generally by appointment only.
As part of the visa interview, an ink-free, digital fingerprint scan can generally be expected.
The waiting time for an interview appointment for most applicants is a few weeks or less, but
for some embassy consular sections it can be considerably longer. Each Mexican applicant for
a TN visa must submit these forms and documentation, and submit fees as explained below:
An application, Nonimmigrant Visa Application, Form DS-156, completed and signed
Supplemental Nonimmigrant Visa Application, Form DS-157 provides additional information
about the travel plans. Submission of this completed form is required for all male applicants
between 16-45 years of age. It is also required for all applicants from state sponsors of
terrorism age 16 and over, irrespective of gender, without exception. For this purpose
nationals of the following countries designated as state sponsors of terrorism, including
North Korea, Cuba, Syria, Sudan, and Iran must submit the supplemental form
A passport valid for travel to the United States and with a validity date at least six months
beyond the applicant's intended period of stay in the United States (unless country-specific
agreements provide exemptions).
Fee of US $131 for the visa application fee plus US $100 for the visa issuance fee
Letter of employment in the United States (see below)
Employment Letter
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The employer in the U.S. must provide to the applicant a Letter of Employment in the United
States. The letter must indicate that the position in question in the U.S. requires the
employment of a person in a professional capacity,
The applicant must present evidence of professional employment to satisfy the Consular
Officer of your plans to be employed in prearranged business activities for a U.S. employer(s)
or entity(ies) at a professional level. Part-time employment is permitted. Self-employment is
not permitted. An employment letter or contract providing a detailed description of the
business activities may be provided from the U.S. or foreign employer, and should state the
following:
Activity in which the applicant shall be engaged;
Purpose of entry;
Anticipated length of stay;
Educational qualifications or appropriate credentials demonstrating professional status;
Evidence of compliance with DHS regulations, and/or state laws; and
Arrangements for pay.
Although not required, proof of licensure to practice a given profession in the United States
may be offered along with a job offer letter, or other documentation in support of a TN visa
application.
Contact Information
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Jon Ahlberg
Assistant Director of International Office
601 University Drive, Hill House
Phone: 245-7966
Email: [email protected]
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Hiring and Payroll Process
Sally Moss
Payroll Services Assistant
Topics to be Covered
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Hiring Process of an International Employee
W-4 information
Purpose of Office of Payroll & Tax Compliance
Documents needed
SSN requirement
Contact information
Hiring Process
• All International employees need to be sent to
the Office of Payroll & Tax Compliance to meet
with Sally Moss
• All employees need to have either a SSN or a
receipt from the SS Office showing that they
have applied for one before they are allowed
to start working
W-4 Information
• Do not include a W-4 form in the employment
packet
– Correct W-4 forms will be processed for the
employee once they have met with Sally Moss in
the Office of Payroll & Tax Compliance
• A W-4 form can’t be completed until individual has a
SSN
• Some International employees have specific W-4 forms
to sign
Purpose of Office of Payroll & Tax
Compliance
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Determine correct tax status
Collect copies of documents
Collect Foreign National Information form
Enter information into The International Tax
Navigator which will print their W-4 and any
other tax documents that may apply to that
individual
Documents needed
• Foreign National Information Form
• I-94 (card in passport which has the date of entry
into the U.S. stamped on it along with Visa
classification)
• U.S. Visa (if applicable)
• I-20, DS-2019 or I-797
• Passport page with expiration date of passport
• Receipt from Social Security Office showing
individual has applied for SSN (only if person
doesn’t have a SSN)
SSN REQUIREMENT
• Determination that the employee is authorized
for employment
– Hiring department will need to give the employee a
Job Offer letter
– The employee will take this letter to the International
Office and will need to pick up a proof of enrollment
letter
– The employee will go to the SSA office to apply for
SSN and will obtain receipt of application which needs
to be taken to Sally Moss in the Office of Payroll & Tax
Compliance before they start working
Contact Information
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Sally Moss
Payroll Services Assistant
601 University Drive, JCK 582
Phone: 245-8310
Email: [email protected]
Office of Payroll & Tax Compliance Website:
http://www.txstate.edu/payroll/
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I-9 Form Guide
How to Complete the I-9 Form
LynnAnn Brewer
Human Resources
What Do I Need to Know?
• Why employers must verify
Employment Authorization
and Identity of new
employees?
• How to Complete the Form
I-9 for F1 Visa employees
• Acceptable Documents for
Verifying Employment
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Why employers must verify Employment
Authorization and Identity of new employees?
• Immigration Reform and Control Act 1986
• Immigration Act 1990
• Illegal Immigration Reform and Immigrant
Responsibility Act 1996
• Homeland Security Act 2002
July 2, 2008
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What Does the I-9 Form Look Like?
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The form is 5 pages long and takes 12 minutes to complete. New employee must
receive the complete form which includes all the instructions and list of
acceptable documents.
July 2, 2008
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Deadlines
• Employee must complete Section 1 of the Form I-9 by his or
her 1st day of work for pay. Employees may complete the
form at any time between acceptance of a job offer and the
first day of work.
• Employer must review the employee’s documents and fully
complete Section 2 with in 3 business days of the first day of
work for pay.
• You may not begin the Form I-9 process
until you offer an individual a job and
he or she has accepted the offer.
July 2, 2008
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Completing Section 1
July 2, 2008
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Completing Section 1
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The new employee must complete Form I-9 in person to verify,
identify and provide original supporting documents.
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Supporting documents should be copied and handed back to the
employee. Attach the copies to the I-9
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Don’t tell or suggest what documents the employee should present.
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A new employee who has applied for a Social Security number but
not yet received it should write “Applied For” in the box intended for
the number. When the employee receives the number, Human
Resources will cross out “Applied For”, insert the number, and initial
and date the change.
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Leave no blanks and complete all fields
July, 2, 2008
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Completing Section 2
July 2, 2008
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Completing the Form I-9 for F-1 Visa Holders
July 2, 2008
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Details
In Section 2, List A field of the Form I-9, you should list the following information:
• Document Title – enter “unexpired foreign passport”
• Issuing Authority – enter the foreign government that issued the passport
and expiration date
• Document Number – I-94 or I-94A number
• Expiration Date – the date on the passport and is usually listed on the
personal profile page but extensions may be recorded on other pages
• Document Number – I-20 number
• Expiration Date – the date or notation listed on form I-20
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Acceptable Documents for Verifying Employment Authorization and Identity
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Acceptable Documents for Verifying Employment Authorization and Identity
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Key Highlights
• The I-9 Form is required by law to be completed by
the 1st day of employment and documents be
reviewed by the 3rd day
• The employee completes Section 1 and the 6 fields
• The employer completes Section 2 and the 3 fields
• All field must be completed for the form to be valid
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Questions?
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I-9 Resources
• I-9 Form: http://www.uscis.gov/files/form/i-9.pdf
• I-9 Handbook (CAUTION: rev. 1991):
http://www.uscis.gov/files/nativedocuments/m-274.pdf
• I-9 process in a Nutshell:
http://www.uscis.gov/files/article/EIB102.pdf
• Office of Special Counsel (Dept. of Justice):
http://www.usdoj.gov/crt/osc/index.html
• 10 Steps to avoid employment discrimination:
http://www.usdoj.gov/crt/osc/htm/facts.htm#steps
July 2, 2008
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Contact Information
• LynnAnn Brewer
• Employment Manager
• 601 University Drive, JCK 340
• Phone: 245-6583
• Email: [email protected]
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Tax Issues for NRA foreign visitors
Marcy Young
Tax Specialist
Office of Payroll & Tax Compliance
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Types of Payments to NRA foreign visitors who visit
Texas State for less than 9 days
Honorarium and/or Travel:
Honorarium rules
• B1/B2 visa, or similar visa, is required. Visa waiver countries don’t
issue a visa, so a passport is sufficient.
• Can only perform services at university for 9 days or less.
• Can only have received payment from 5 other institutions within 6
month prior period.
J1 sponsored by another university
• Must receive permission in writing from the sponsoring institution to
be paid by Texas State. The Tax Specialist will request permission by
contacting the Responsible Officer listed on the J1’s DS-2019.
Travel
• Foreign scholars may be paid or reimbursed for travel without tax if
we have travel receipts as backup. The Travel Office at Texas State
handles all travel applications, approvals and payments.
Prizes - A contest prize may be paid under the honorarium rules.
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Steps to Take
1.
Contact the Tax Specialist:
a. Foreign National Information form – ask the foreign scholar to
complete and return, and submit it to the Tax Specialist. This helps
the Tax Specialist determine:
1. The country of citizenship and the visa status of the visitor.
2. Whether or not they have a social security or taxpayer number.
3. Whether or not permission from a sponsor is required for payment.
b. Advice – The Tax Specialist will advise you whether or not tax
withholding is required, and whether or not a meeting with the
foreign visitor is required to complete paperwork. A copy of the
visitor’s visa and passport are necessary when the visitor arrives on
campus.
2.
3.
4.
Send Letter of Invitation to foreign scholar, and copy to Tax Specialist.
Assist with Obtaining Correct Visa: Contact the International Office if needed.
Travel Application and Travel Reimbursement for Non-Employees: If
paying travel, you must contact the Travel Office to complete a travel application and
submit the Travel Reimbursement for Non-Employees. Travel from a foreign country
must be approved by President Trauth. This is part of the travel application process.
5.
Vendor Maintenance Form (Form FS-01) – completed by NRA and
submitted directly to the FI Master Data Center
6.
Contracted Services Payment Voucher(Form FS-03)
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Example of honorarium payment to a foreign
visitor
Example 1 –
The Journalism Department at Texas State invited a film student, Mr.
Montero, from Chile, to present his documentary at the Texas State
Foreign Documentary Festival. He visited Texas State for 5 days with a
B1/B2 visa to present his film, and won first prize - $1,000.
1. Foreign National Information Form and Vendor Maintenance form –
These forms were completed by Mr. Montero and sent to the university
per instructions on the form.
2. Contracted Services Payment Voucher – Once approved for honorarium
payment by the Tax Specialist, this form was completed by the
department and sent to the Tax Specialist.
3. No tax treaty – The Tax Specialist advised that there is no U.S. tax treaty
with Chile, therefore 30% withholding from the prize was required. The
department asked for a copy of his visa and passport and sent it to the
Tax Specialist, so a meeting was not required with the Tax Specialist.
4. 1042-S tax form - Mr. Montero received a 1042-S form at the end of the
year showing $1000 in income, with $300 tax withheld. He can file a U.S.
tax return (1040-NR) to recover withheld tax.
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Example of honorarium and travel paid on behalf
of a foreign visitor
Example 1 –
The Music Department invited a violinist, Ms. Halle, from Berlin to participate
in a music festival at Texas State. They offered to pay travel as well as
honorarium.
1. Foreign National Information Form and Vendor Maintenance form –
These forms were completed by Ms. Halle and sent to the university per
instructions on the form.
2. Travel Application and Travel Reimbursement Form for Non-Employees –
Since travel was paid separately, the department completed a travel
application through the Travel Office and obtained approval from the
President, then submitted a Travel Reimbursement form for Nonemployees with attached receipts to the Travel Office.
3. Contracted Services Payment Voucher –was sent to the Tax Specialist for
payment of the honorarium.
4. No taxpayer number, no tax treaty – Since Ms. Halle did not have a
taxpayer number, she was not eligible to apply for the tax treaty. 30%
withholding was required from the honorarium, but not the travel. A
1042-S form was sent to Ms. Halle in January. She can apply for a tax
number and tax treaty exemption when she files her tax return.
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Example of honorarium payment to a J1 scholar
visiting from another university.
Example 2 –
The English Department at Texas State invited a distinguished speaker, Ms.
Habish from Egypt to present a lecture at Texas State. Ms. Habish is a J1
Fulbright Scholar-In-Residence at another U.S. university. She visited Texas
State for 3 days with a J1 visa, and was paid $500.
1. Foreign National Information Form, Vendor Maintenance form and DS-2019 –
The department sent the Vendor Maintenance form and FNIF form to Ms.
Habish and requested a copy of her DS-2019. Ms. Habish completed the forms
and sent them and the DS-2019 to the university per instructions on the forms.
2. DS-2019 form – The Tax Specialist approved payment of honorarium, and also
requested permission in writing from the Responsible Officer listed on the form.
3. IRS Form 8233 - Ms. Habish met with the Tax Specialist to apply for a tax treaty
exemption. Since she already has a social security number, she is eligible to
apply for the exemption. After the required 10 day waiting period, payment was
made to Ms. Habish without tax withholding.
4. Contracted Services Payment Voucher – Completed by the department to pay
Ms. Habish, and sent to the Tax Specialist.
5. 1042-S tax form – Ms. Habish received a 1042-S form at the end of the year. She
can, but is not required to file a U.S. tax return (1040-NR).
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Accountable plan travel reimbursements
• Non-taxable vs. taxable travel:
1. Travel must be for university business purposes and must
benefit the university.
2. Travel reimbursements or direct billed travel are not
taxable if receipts are turned in with the Travel
Reimbursement Form for Non-Employees. The receipts
must match or exceed the amount paid.
3. Without travel receipts or direct billed travel, the
university will treat the payment as an honorarium and tax
accordingly.
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Gross Up Pay for Tax Withholding
If the university department wants to pay the withholding tax for the
foreign person, the net to pay is “grossed-up” to include withholding
tax. The grossed-up amount is calculated as follows:
Net to pay ÷ (1.0 - tax%) = Grossed up amount
Example:
You want to pay someone net $3,000, and you want to include
withholding tax:
With 30% tax withholding:
$3,000 ÷ 70% = $4,286 (This is an expensive option, so plan to
have correct forms in advance of visit)
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Contact Information
• Marcy Young
• Tax Specialist
• 601 University Drive, JCK 520
• Office of Payroll & Tax Compliance
• Phone: 245-8708
• Email: [email protected]
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