decorative-icon Payment Process for International Visitors

 

Background:

The American Competitiveness and Workforce Act provided the ability to pay reimbursements for expenses and honoraria to international visitors engaged in academic activities within a limited set of circumstances. In addition to work authorized visa types such as H, J, O; we are now able to pay visitors in a "B" status, (B-1, B-2, combination B-1/B-2, W-T, W-B, and combination W-T/W-B) within certain restrictions. To do so, the International Visitors Declaration Form will need to be completed that indicates the activity and that the individual met all requirements.

Terminology:

Visa is an official endorsement to enter, leave, or stay in the U.S. for a specified period of time.  This may be a special page or a stamp in the visitor’s passport or it is on the I-94 form showing the visa status under which they entered the U.S. for this, their most current visit.

ESTA is an 'electronic system for travel authorization' used by the U.S. It is not a type of visa.

I-94 form, the U.S. Arrival and Departure Record issued by a Customs and Border Protection (CBP) Officer to foreign visitors entering the United States.  A copy of their I-94 form can be obtained by the visitor on the U.S. Homeland Security's website. https://i94.cbp.dhs.gov/I94/#/home

B-1, W-B = Visitor for business purposes.  In order to assist your visitor to enter the U.S. in a W-B or B-1 business status, you will need to provide them an official letter of invitation on University of Oregon letterhead, signed by a UO employee, which contains your visitor's name, the dates and subject of the invitation before they travel. They are then able to present this letter to the pertinent authority requesting that they grant your visitor a "visitor for business" status. They may be from a country that is participating in the Visa Waiver Program, or already have a valid ongoing visa (extended term), in which case they would present the letter to immigration official at the port of entry. It is possible they may be required to get a new visa from the U.S. Embassy in their home country.

B-2, W-T = Visitor in a tourist status.

W-T and W-B are equivalent of B-2 and B-1 visa types, respectively, for visitors residing in a visa-waiver country.

W-8 Forms - There are only two W-8 forms available for use by individuals. The W-8BEN Form (does not require a U.S. Taxpayer ID number) or the much less commonly used W-8ECI form (U.S. Taxpayer ID number required)

Tax Withholding:  Any amount of taxes withheld from a payment will be paid to the IRS in the name of the recipient of the payment.  After the end of the current calendar year, the recipient will receive a 1042-s form from the University of Oregon showing the payment and withholding amounts.  See 1042-s Information Below.

Treaty Benefits -

8233 - IRS form used for international visitors, who are residents in those countries who have a tax treaty with the U.S., to claim a reduced rate of tax on any personal services they performed inside the U.S. This form requires the visitor have a U.S. Taxpayer Identification Number (TIN or SSN).  If there is an applicable tax treaty, and your international visitor has a U.S. Taxpayer ID number, and they formally claim treaty benefits; the tax withholding is reduced to 0%.  List of Countries with US Tax Treaties

If your visitor is eligible for tax treaty benefits, submit a completed 8233 (instructions) to Joy Germack, Business Affairs Office allowing 10 days before payment date. There is a ten-day waiting period after an acceptance agent signs off on a form and remits it to the IRS. If the IRS does not reject the form within the ten-day waiting period the 8233, form is in effect.  An original, wet signature form must also be received by BAO before payment can go out.  Send original 8233 to Joy Germack, Business Affairs Office.

 Initiating Departments are responsible for collecting and keeping in their records, or scanning into Concur for any travel, a signed International Visitors Declaration Form and a copy the visitor's I-94.

If your international visitor will be here for an extended period of time, please contact the Office of International Affairs at least 6 weeks before the scheduled visit. They will help you obtain the appropriate J-1 visa paperwork (DS-2019) to send to your visitor. Your visitor will use the DS-2019 to get the correct visa from the U.S. Embassy in their home country. The most common J-1 Visa enables the visitor to work and receive proper payment.

 

Payment Type Number Payment Type Visa Type Entered U.S. Under/Most recent Entry Restrictions Tax Withholding Rate, if no Treaty Benefits Documents Required to Collect from International Visitor If Treaty Benefits are available, they require:
             
1 Honoraria or Contract for Services Business visa: B-1 or WB (ESTA) 9 days or less of services  (does not have to be consecutive) 30% *Copy of most current I-94 form (or copy Canadian Passport) *8233 form
          *Signed W-8BEN & PSC - to Accounts Payable *U.S. Tax ID number or SSN
          *Signed UO International Visitor Declaration Form that not more than 9 days of services. *Payment allowed 11th  day after form is faxed to IRS
            *Original Signature Form received by BAO before Payment is released
             
             
2 Honoraria or Contract for Services Business visa: B-1 or WB (ESTA) More than 9 days of services 30% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
3 Honoraria or Contract for Services Tourist visa:  B-2 or WT (ESTA) 9 days or less of services, does not have to be consecutive 30% *Copy of most current I-94 form (or copy Canadian Passport) *Same as Payment Type Number 1
          *Signed W-8BEN & PSC - to Accounts Payable  
          *Signed UO International Visitor Declaration Form that not more than 9 days of services.  
             
             
4 Honoraria or Contract for Services Tourist visa:  B-2 or WT (ESTA) More than 9 days of services, exceeded visa restriction 30% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
             
5 Honoraria or Contract for Personal Services UO Sponsored F-1 or UO Sponsored J-1 Can only Perform Services for UO 30% *Signed W-8BEN & PSC - to Accounts Payable *Same as Payment Type Number 1
             
             
6 Honoraria or Contract for Services Non-UO Sponsored F-1 or non-UO Sponsored J-1 Can only Perform Services under a UO CPT, UO OPT, or approval letter from their Sponsor's RO/ARO 30% *Copy of most current I-94 form (or copy Canadian Passport) *Same as Payment Type Number 1
          *Signed W-8BEN & PSC - to Accounts Payable Additionally, a copy of their I-20 (F-1)  or DS-2019 (J-1)
             
             
7 Honoraria or Contract for Services Other visas (not B-1, B-2, WB, WT, F-1, or J-1)   30% *Copy of most current I-94 form (or copy Canadian Passport) *Same as Payment Type Number 1
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
8 Travel Expenses Business visa: B-1 or WB (ESTA) Meets accountable Plan Rules 0% *Copy of most current I-94 form (or copy Canadian Passport) *N/A-not tax reportable
          *Signed W-8BEN & PSC - to Accounts Payable  
          *Signed UO International Visitor Declaration Form  
             
             
9 Travel Expenses Tourist B-2 or WT (ESTA) Travel Less than 10 days 0% *Copy of most current I-94 form (or copy Canadian Passport) *N/A-not tax reportable
      Meets accountable Plan Rules   *Signed W-8BEN & PSC - to Accounts Payable  
          *Signed UO International Visitor Declaration Form  
             
10 Travel Expenses Tourist B-2 or WT (ESTA) Travel more than 9 days, exceeds visa restrictions. Regardless of account code used or receipts collected , tax reportable 30% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
11 Travel Expenses UO Sponsored F-1 or UO Sponsored J-1 Coded 5XXXX - stipend 14% *Signed W-8BEN- to Accounts Payable *U.S. Tax ID number or SSN
            *Formal Request on Part II of W-8BEN form
             
             
12 Travel Expenses Non-UO Sponsored F-1 or non-UO Sponsored J-1 Coded 2863X - stipend 14% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
12a Travel Expenses Non-UO Sponsored F-1 or non-UO Sponsored J-1 Coded 35XXX & meets accountable plan rules, that UO benefitted more than the student. This is demonstrated by student presenting a poster or paper, or work related travel by a student employee. 0% *Copy of most current I-94 form (or copy Canadian Passport) *N/A-not tax reportable
          *Signed W-8BEN & PSC - to Accounts Payable  
             
             
13 Scholarship/Fellowship Stipends UO Sponsored F-1 or UO Sponsored J-1 Coded 5XXXX - stipend 14% *Signed W-8BEN- to Accounts Payable *U.S. Tax ID number or SSN
            *Formal Request on Part II of W-8BEN form
             
             
14 Scholarship/Fellowship Stipends Non-UO Sponsored F-1 or non-UO Sponsored J-1 Coded 2863X - stipend 14% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN- to Accounts Payable  
             
             
15 Scholarship/Fellowship Stipends Other visas (not B-1, B-2, WB, WT, F-1, or J-1) Coded 2863X - stipend 30% *Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN- to Accounts Payable  
             
             
16 Monetary Awards   Not a scholarship/fellowship 30% *If entered the U.S., Copy of most current I-94 form (or copy Canadian Passport) *No treaty benefits allowed
          *Signed W-8BEN- to Accounts Payable  
             

 

Note:  H-1B visa holders who are not sponsored by UO are not permited to engage in activities outside their sponsor. Unless they have received USCIS approval for a “concurrent’ H-1B through UO, they may not be paid an honorarium. They are permitted to make occasional speeches and give lectures at other institutions or conferences, but may only be reimbursed for “transportation and reasonable, incidental expenses” incurred in connection with travel to other institutions or conferences.

If you have any questions or if your international visitor entered the U.S. under any other visa status besides B, F, or J; please call Joy Germack at 541-346-0782.

1042-s Tax Form

The IRS form 1042-S is used to tax report the gross amounts paid to and taxes withheld from foreign persons or foreign entities that are subject to income tax reporting, even if no amount is deducted and withheld from the payment due to a treaty benefit. The 1042-S forms must be sent by the University of Oregon to both the IRS and to the recipients by March 15 of the year following the calendar year in which the income subject to reporting was paid. If March 15 falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. The University will make every effort to have these forms in the mail sooner than the due date.   https://www.irs.gov/forms-pubs/about-form-1042-s