Payments to Non-Resident Aliens

1. Payments to Non-Resident Aliens Finance and Administration Financial Operations The Office of Disbursements

2. Index Who Is a Non-Resident Alien? Why Are Payments to Non-Resident Aliens Subject to Tax Withholding? What Are the Ramifications of Not Complying With Section 1441 of the IRS Code? Types of Payments Subject to Review… Employee Compensation Payment Flowchart What Forms Are Required for Employee Compensation Payment? Travel Expense Reimbursement (Non-employee) Payment Flowchart What Forms Are Required for Travel Expense Reimbursement (Non-employee) Payment? B1/WB & B2/WT Visa Requirements-TRAVEL EXPENSES/PER DIEMS

3. Index -Continued B1/WB & B2/WT Visa Requirements-TRAVEL EXPENSES/PER DIEM Scholarship Payment Flowchart What Forms Are Required for Scholarship Payment? Honorarium/Award Payment Flowchart What Forms Are Required for Honorarium/Award Payment? B1/WB & B2/WT Visa Requirements-HONORARIUM Consultant/Independent Contractor Payment Flowchart What Forms Are Required for Consultant/Independent Contractor Payment? Where Can These Forms Be Found? Appendix of Required Forms

4. Who Is a Non-Resident Alien? • For tax purposes, anyone who is NOT a U.S. Citizen or permanent resident alien (green card holder) and has not satisfied the substantial presence test is considered a non-resident alien who may be subject to tax withholding. 2

5. Why Are Payments to Non-Resident Aliens Subject to Tax Withholding? • Under internal revenue code section 1441 certain payments made to non-resident aliens are subject to possible tax withholding. Treasury regulation 1.1461-2 requires all such payments be reported to the IRS • It is the University’s responsibility to withhold tax unless evidence is provided to show exemption from tax 3

6. What Are the Ramifications of Not Complying With Section 1441 of the IRS Code? • Failure to comply with this code section may result in the University being held liable for the tax that should have been withheld, plus penalties and interest. 4

7. Types of Payments Subject to Review… • Employee compensation • Travel expense reimbursement (non-employee) • Scholarship (non-qualified portion only) • Qualified - tuition, enrollment fees, and supplies • Non-qualified – everything else, including, but not limited to stipends, housing, board, transportation and cash • Honorarium or award/prize • Consultant/independent contractor 5

8. Employee Compensation Payment Flowchart 6

9. What Forms Are Required for Employee Compensation Payment? 7

10. Travel Expense Reimbursement (Non-employee) Payment Flowchart 8

11. What Forms Are Required for Travel Expense Reimbursement (Non-employee) Payment? 9

12. B1/WB & B2/WT Visa Requirements-TRAVEL EXPENSES/PER DIEMS • B1/WB Visa: • may be reimbursed for reasonable travel and incidental expenses (evidenced by receipts for all lodging and travel) incurred in connection with a usual academic activity, regardless of the duration of the activity and regardless of whether the individual has previously received payment from other educational institutions. • No SSN or ITIN required for payments that fall under the accountable plan rules. 10

13. B1/WB & B2/WT Visa Requirements-TRAVEL EXPENSES/PER DIEM • B2/WT Visa: • may be reimbursed for reasonable travel and incidental expenses (evidenced by receipts) incurred in connection with a usual academic activity, not exceeding 9 days in duration, provided that the individual has not received honoraria from more than 5 educational institutions in the previous 6 month period (9/5/6 rule) • Maximum Per Diem for B2/WT under GSU’s accountable plan is $43/day for meals and incidentals. (9 days @ $43 per day= $387 ) • No SSN or ITIN required for payments that fall under the accountable plan rules. 11

14. Scholarship Payment Flowchart 12

15. What Forms Are Required for Scholarship Payment? 13

16. Honorarium/Award Payment Flowchart 14

17. What Forms Are Required for Honorarium/Award Payment? 15

18. B1/WB & B2/WT Visa Requirements-HONORARIUM • B1/WB & B2/WT Visa: • may be paid an honorarium for usual academic activity not exceeding nine days in duration, provided that the individual has not received honoraria from more than 5 educational institutions in the previous 6 month period (9/5/6 rule) • Must have SSN or ITIN to receive payment (Recommendation: Have visitor obtain number prior to arriving in the United States) 16

19. Consultant/Independent Contractor Payment Flowchart 17

20. What Forms Are Required for Consultant/Independent Contractor Payment? 18

21. Where Can These Forms Be Found? • Payment Request Form – http://www.gsu.edu/~wwwspc/Forms/paymentrequest.doc • Consultant Requisition Form – http://www.gsu.edu/~wwwspc/Forms/Consultant.doc • Foundation Disbursement Form – http://development1/foundation/fw/foundation%20disbursement%20form%2001_21_2004.doc • Foreign National Information Form – http://www2.gsu.edu/~wwwspc/Forms/foreignnationals.doc 19

22. Where Can These Forms Be Found? • IRS form W-7 - http://www.irs.gov/pub/irs-pdf/fw7.pdf • I-94, I-20, I-797 or DS-2019 – http://www.ins.gov • Personnel Action Form - http://www.gsu.edu/~wwwhre/forms/PAFForm.pdf • Federal per diem rates – http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentId=17943&contentType=GSA_BASIC • B Visa Certification Form http://www2.gsu.edu/~wwwspc/Forms/BVisaCert.pdf 20

23. Appendix of Required Forms 21