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Nonresident Alien Payments Policy

Effective Date: January 8, 2025

Purpose

This policy establishes the requirements and procedures governing payments made by the Â鶹ҹÊÐ to nonresident aliens (NRAs). The policy ensures compliance with applicable federal immigration regulations, Internal Revenue Service (IRS) requirements, and related federal tax withholding laws.

This policy applies to payments processed through Accounts Payable and does not govern compensation paid through the University Payroll Office.

Scope

This policy applies to all University departments initiating payments to nonresident aliens, including but not limited to:

• Independent contractor and consultant payments

• Honoraria and guest speaker payments

• Scholarship and fellowship payments (non-payroll)

• Reimbursements of travel and related expenses

Payroll compensation for employees is governed separately by Payroll policies and federal employment regulations.

Definitions

Alien / Noncitizen / Foreign National — Any person who is not a citizen or national of the United States.
Employee — Any University employee, including faculty, staff, administrators, and student workers.
Nonresident Alien (NRA) — An individual who is not a U.S. citizen or national and who does not meet the IRS Green Card or Substantial Presence test.
Form I-94 — Arrival/Departure Record issued by DHS.
Form I-20 — Certificate of student eligibility.
Form DS-2019 — Certificate of eligibility for J-1 exchange visitors.
Form W-8BEN — Used by foreign individuals to claim treaty benefits.
Form 8233 — Used to claim treaty benefits for personal services.

Before Requesting Payment

Eligibility to Receive Payment

The visitor’s visa classification must permit payment or reimbursement. Accounts Payable will review all documentation prior to processing.

Types of Eligible Payments

• Expense reimbursement (travel, lodging, per diem) when allowed by visa type

• Compensation for services (honoraria, consulting fees) when legally permitted

Using personal funds to pay a foreign visitor and then requesting reimbursement is not allowed and will not be reimbursed.

Required Documentation

A Foreign National Data Form must be submitted before any payment is initiated, along with the following:

Nonresident Alien Visitors (Non-Students)

• Passport

• Visa

• Form I-94 (with exception of certain Canadian visitors)

• DS-2019

Nonresident Alien Students

• Passport

• Visa

• I-94 (with exception of certain Canadian visitors)

• I-20

Additional Documentation May Be Required

Depending on visa, tax treaty status, sponsoring institution, or payment type.
SSN or ITIN is required to claim treaty benefits.

Tax Withholding Rules

Nonresident Alien Visitors

• Payments for services performed outside the U.S.: not subject to withholding

• Expense reimbursement under an accountable plan: not taxable

• Honoraria/compensation for services in the U.S.: 30% withholding, unless reduced by treaty

Honoraria limits (B-1/B-2/WB/WT):

• Up to 9 days at the University

• No more than 5 institutions paid in 6 months

• Honoraria Certification Form required

Nonresident Alien Students

• Qualified scholarship (tuition, fees and related expenses): not taxable

• Nonqualified scholarship/stipend (housing, meals, stipends): generally 14% withholding

Tax Treaty Benefits

Some NRAs may qualify for reduced or exempt withholding through a U.S. tax treaty.

How to Claim Treaty Benefits

• Form W-8BEN — non-service income and scholarships

• Form 8233 — personal services and honoraria

• Must include SSN or ITIN

Refunds of tax withheld cannot be issued by the University; individuals must request any refund directly from the IRS.

Summary of Payment Rules by Visa Type

B-1 / B-2 / WB / WT (Business Visitor Status)

Honoraria and/or reimbursement of expenses may be permitted provided that:

• The activity qualifies as an academic honorarium under federal regulations.

• The individual is present at the University for no more than nine (9) days.

• The individual has not accepted honoraria or expense reimbursements from more than five (5) U.S. institutions within the previous six (6) months.

• The required Honoraria Eligibility Certification Form is completed.

Federal income tax withholding at 30% generally applies unless a tax treaty exemption is properly documented.

F-1 Student (Â鶹ҹÊÐ Sponsored)

• Scholarships, awards, and tuition and fee exemptions are permitted.

• Expense reimbursements under an accountable plan are permitted and generally not subject to withholding.

• Nonqualified scholarship amounts (such as stipends, housing, or meals) are generally subject to 14% withholding.

• Compensation for services must comply with on-campus employment rules or authorized practical training requirements and is processed through Payroll when applicable.

F-1 Student (Sponsored by Another Institution)

Fee-for-service payments may be permitted only if:

• The services are performed on the sponsoring institution’s campus; or

• The student has DHS-authorized Optional Practical Training (OPT) and possesses a valid Employment Authorization Document (EAD) covering the dates of service.

Expense reimbursement may be permitted when appropriate documentation is provided.

F-2 Dependent

Individuals in F-2 status are not eligible to receive fee-for-service payments or general expense reimbursements from the University.

H-1B (Sponsored by Â鶹ҹÊÐ)

• Compensation for services must be paid as wages through the University Payroll Office.

• Fee-for-service payments through Accounts Payable are not permitted.

• Reimbursement of travel expenses incurred for official University business is permitted in accordance with University travel policies.

H-1B (Sponsored by Another Institution)

The University may not make payments of any kind directly to an H-1B visa holder sponsored by another institution.

Departments must coordinate with the sponsoring institution if services are requested.

H-4 Dependent

• Fee-for-service payments are not permitted.

• Scholarships, awards, tuition and fee exemptions, and related reimbursements may be allowed, subject to tax withholding rules.

J-1 Exchange Visitor (Â鶹ҹÊÐ Sponsored)

• Fee-for-service payments, scholarships, awards, and expense reimbursements may be permitted when consistent with program authorization.

• Payments remain subject to applicable federal withholding requirements.

J-1 Exchange Visitor (Sponsored by Another Institution)

Payment may be permitted only if the Responsible Officer listed on the Form DS-2019 provides written authorization confirming that:

• The activity is consistent with the visitor’s exchange program; and

• The proposed activity complies with USCIS and Department of State regulations.

TN Status (Â鶹ҹÊÐ Sponsored)

• Compensation for services must be processed through Payroll as employee wages.

• Expense reimbursements for official University business are permitted in accordance with University travel policy.

TN Status (Sponsored by Another Institution)

No payments may be made directly by the University to a TN visa holder sponsored by another institution.

Enforcement & Responsibilities

The Office of Administrative Services enforces this policy and reviews payment requests for compliance.

• Payments will be delayed or denied if documentation or legal requirements are incomplete

• Violations may result in disciplinary action

Policy Management

Responsible Executive: Vice President for Administration & Finance
Responsible Office: Administrative Services

Forms & Resources

• Foreign National Data Form

• Honoraria Certification Form