Making Payments to Foreign Nationals
Payments That Can Be Issued to Foreign Nationals
Foreign nationals are strictly limited in what sources of income they are authorized to accept and all payments are taxable unless an exception under a treaty or IRS code applies.
- B-1, B-2, VWB and VWT are prohibited from being employed but may be paid under the Honorarium Rule conditions.
- F-1 and J-1 students may be employed on and off-campus under certain circumstances. Off-campus (non-WWU) employment requires specific work authorization from International Student & Scholar Services (ISSS) prior to accepting employment.
- F-1 students may be eligible for 12 months of Optional Practical Training (OPT).
- F-1 students in STEM fields may be eligible for a 17 month extension of their OPT.
- J-1 non-students may be employed on campus. Permission to work off campus (non-WWU employment) is restricted and must be approved by the International Student & Scholars Services (ISSS) prior to accepting employment.
- H-1B, O and E-3 visas are restricted to temporary workers in specialty occupations.
- TN visas are restricted to Mexican and Canadian workers in specialty occupations.
Resources
Payment to an individual for a presentation-oriented, guest lecture or invitational event. Standard taxation rate: 30%
- Read special rules for Honorarium Payments to Foreign Nationals
- Verify that Payment Can Be Issued to Foreign National
- Download appropriate invitation letter
- Letter A - requires B visa to enter U.S.
- Letter B - Visa Waiver Program
- Letter C - J-1 scholar already in U.S.
- Letter D - J-1 Scholar coming to WWU from abroad
- Download Honorarium Payments to a Foreign National (Checklist)
- Complete WWU Form 1631, Honoraria Checklist for Invited Guest Speakers
- Foreign National completes WWU Form 1007
- Check IRS Publication 515 for available tax treaty
- IRS Form 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, Instructions for Form 8233
Payment as a reward or recognition for a special achievement such as winning a judged competition or payment for participation as a research subject. Standard taxation rate: 30%
Payments for services performed by individuals who are not employees and who meet the criteria on WWU Form 1632. Standard taxation rate: 30%
- Verify that Payment Can Be Issued to Foreign National
- Download (Independent Contractor or Performer Service Payments to a Foreign National Checklist)
- Complete WWU Form 1632
- Reference Employee vs. Independent Contractor Classification Checklist
- Foreign National completes WWU Form 1007
- Check IRS Publication 515 for available tax treaty
- IRS Form W-BEN-E - Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities), Instructions for Form W-BEN-E
- IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), Instructions for Form W-8BEN
- IRS Form 8233
- Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, Instructions for Form 8233
Payments made for the use of intangible (royalty) or tangible (rent) property. Various tax rates apply up to 30% withholding - see IRS Publication 515 for specific details.
- Download Royalty or Rent Payments to a Foreign National Checklist
- Check IRS Publication 515 for available tax treaty
- IRS Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), Instructions for Form W-8BEN
- IRS Form W-8EXP Certificate of Foreign Government or Foreign Organization for United States Tax Withholding, Instructions for Form W-8EXP
A one-time payment to assist a student in pursuing a course of study or research. Generally not considered taxable income if the recipient is a candidate for a degree and the award is used to pay for tuition, fees and/or other mandatory books, supplies, and equipment required for all students in course of study.
- Verify that Payment Can Be Issued to Foreign National
- Download Scholarship or Fellowship Award Payments to a Foreign National Checklist
- Foreign National completes WWU Form 1007
- Check IRS Publication 515 for available tax treaty
- IRS Form W-8BEN
- Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), Instructions for Form W-8BEN
Payments made to foreign companies or entities. Standard taxation rate: 30%
- Verify that Payment Can Be Issued to Foreign National
- Download Service Payments to a Foreign Entity Checklist
- Check IRS Publication 515 for available tax treaty
- IRS Form W-8BEN Ð Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), Instructions for Form W-8BEN
- IRS Form W-8EXP Ð Certificate of Foreign Government or Foreign Organization for United States Tax Withholding, Instructions for Form W-8EXP
Payments for expenses incurred while traveling on University business. Generally not considered taxable income.