Payment Process for International Visitors

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 visa type nor a visa status.

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.

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.

8233 - IRS form used for international visitors residing in those countries who have a tax treaty with the U.S. to claim a reduced rate of tax on any personal services they perform inside the U.S. This form requires the visitor have a U.S. Taxpayer Identification Number (TIN or SSN). There is a  required 10-day waiting period after form is sent to IRS, and payment cannot be released until an original, wet signature is received by BAO.

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 Frequently Asked Questions Below.

W-8 Forms - Accounts Payable Vendor Maintenance requires an IRS W-8 form be forwarded to them in order to set up a non-resident alien into Banner. The most common W-8 form for foreign individuals is the W-8BEN. More information can be found at https://ba.uoregon.edu/content/vendor-setup

 

 

 

 

Select Appropriate Travel Situation, if your visitor entered the U.S. under a B, WB, T, WT visa type:

  1. Travel Per Diem under 10 days and visitor has not been reimbursed by more than 5 institutions in the last 6 months.
  2. Travel Per Diem over 9 days and/or visitor has been reimbursed by more than 5 institutions in the last 6 months.
  3. Honorarium, in addition to Travel & Per Diem - under 10 days and visitor has not been reimbursed by more than 5 institutions in the last 6 months.
  4. Honorarium, in addition to Travel & Per Diem - over 9 days and/or visitor has been reimbursed by more than 5 institutions in the last 6 months.

Travel Visit under 10 days

Travel hotel and per diem under 10 days, and visitor has not been reimbursed by more than 5 institutions in the past six months.

This procedure is applicable only if the Visitor entered the U.S. in a B1, B2, WB or WT status. If your visitor entered the U.S. under any other status, please contact Joy Germack, Sr. Tax Analyst, in Business Affairs Office.

1. Initiating Departments are responsible for collecting and keeping in their records a signed International Visitors Declaration Form and a copy the visitor's I-94.

2. Scan a copy of required forms into Concur for any travel reimbursements.

Forms Checklist:

Type of Payment:

Honoraria/Expenses

Honoraria/Expenses

Travel Expenses

Travel Expenses

Visitor's Status:

J,O,P etc- Must be authorized in writing by RO/ARO

Visitor for Business or Tourist Status (B1,B2,WT,WB& combinations)

Tourist Status (B2,WT)

Visitor for Business (B1, WB and combinations WB/WT, B1/B2)

PSC

X

X

   

8233 Form if Appl.

if appl.

if appl.

   

Photocopy of I-94

X

X

X

X

Declaration Form

X

X

X

X

Travel

if appl.

if appl.

X

X

Note:

  1. Canadians without an I-94 are presumed to be in a B tourist status. Initiating Departments will need to obtain a copy of their Canadian Passport.

Travel Visit over 9 days

Travel Per Diem over 9 days and/or visitor has been reimbursed by more than 5 institutions in the past six months.

This procedure is applicable only if the Visitor entered the U.S. in a B1, or WB status. If your visitor entered the U.S. under any other status, please Joy Germack, Sr. Tax Analyst, in Business Affairs Office.

If the activity and your Business visa type ( WB or B1) visitor meets the qualifications and signs the International Visitors Declaration Form, they can be paid/reimbursed for hotel and meal per diem (but not honorarium) for more than 9 days. If the visitor cannot, the following procedures will need to followed depending on what you intend to pay your visitor:

Honorarium and or related expenses:

Contact the Office of International Affairs at least 6 weeks before the scheduled visit. They will help you obtain the appropriate 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.

Reimbursement of travel expenses:

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, that 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.

AND

Scan a copy of all required documents for any travel reimbursements into Concur.

Forms Checklist:

Type of Payment:

Honoraria/Expenses

Honoraria/Expenses

Travel Expenses

Travel Expenses

Visitor's Status:

Work Authorized Status J,O,P etc.

Visitor for Business or Tourist Status (B1,B2,WT,WB& combinations)

Tourist Status (B2,WT)

Visitor for Business (B1, WB and combinations WB/WT, B1/B2)

PSC

X

X

   

8233 Form if Appl.

if appl.

if appl.

   

Photocopy of I-94

X

X

X

X

Declaration Form

X

X

X

X

Travel

if appl.

if appl.

X

X

Notes:

  1. Canadians who enter the country without a visa type, and therefore do not have an I-94, are presumed to be in a B tourist status, and will only be eligible to receive an honorarium if they are able to sign an International Visitors Declaration Form (less than ten days and five or less institutions in the past six months.) The Initiating Department will need to obtain a copy of their Canadian Passport.

Honoraria & Travel Visit under 10 days

This procedure is applicable only if the Visitor entered the U.S. in a B1, B2, WB or WT status. If your visitor entered the U.S. under any other status, please call Joy Germack at 541-346-0782.

Honorarium, in addition to Travel & Per Diem less than 10 days and visitor has not been reimbursed by more than 5 institutions in the last 6 months.

1. Initiating Departments are responsible for collecting and keeping in their records a signed International Visitors Declaration Form and a copy the visitor's I-94.

2. Scan a copy of all forms into Concur for any travel reimbursements.

Important Tax Implications:

Honoraria payments are considered taxable income to a foreign national and will be subject to federal income tax unless your visitor is eligible for tax treaty benefits. In order to file a reduced rate of withholding certificate they must have a federal tax reporting identification number. The visitors in the B status will be eligible to apply for an Individual Taxpayer Identification number at the Eugene Branch of the IRS or by mail. Here are the addresses of our local agencies.

A visitor that is here on a work authorized visa type (J, O or P) will need to apply for a Social Security Number at the Social Security Office.

1. If your visitor does not have a US tax reporting identification number, and they choose to get one for Treaty Benefits, they are required to:

Apply for either a Social Security Number (SSN) or Individual Tax Identification Number (ITIN)

For SSN:

Social Security Administration
2504 Oakmont Way
Eugene, OR 97401-5441
Office Hours: 9:00 am-4:30 pm

Your visitor will be required to present a passport and DS-2019.

Your visitor may apply for an SSN by mail but would be required to send the original passport or a copy certified by the issuing agency (e.g. a copy of the passport would have to be certified by the U.S. Embassy in their home country) to the Social Security Administration. A certified copy of the DS-2019 will also need to be included. Start the process early, it can take up to six weeks before an SSN card will be issued.

For ITIN: W-7

In person:

Internal Revenue Service
211 E. 7th
Eugene, OR 97401
Office hours: 8:30 a.m.-4:30 p.m.
(541) 302-0999

Documentation required:

  • Completed form W-7
  • Completed 8233 form, signed by a withholding agent (BAO personnel)
  • A letter from your department requesting your visitor's presence for the speaking engagement
  • Personnel identification will need to be verified by the IRS

By Mail:

Your visitor may apply for an ITIN by mail, start the process early it can take up to six weeks before an ITIN will be issued.

The following documents are required for the application:

  • Completed form W-7
  • Identification Documentation for section 6d of W-7 form -You must submit original documents, or certified copies of these documents from the issuing agency, that support the information provided on Form W-7.
  • Completed 8233 form, signed by a withholding agent (BAO personnel)
  • A letter from your department requesting your visitor's presence for the speaking engagement

Determine whether your visitor will be eligible for tax treaty benefits. See the

List of Countries with US Tax Treaties

THEN

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. To file an 8233 form, the recipient is required to have a federal taxpayer identification number. 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.  Original, wet signature form must also be received by BAO before payment can go out.  Send original 8233 to Joy Germack, Business Affairs Office.

Forms Checklist:

Type of Payment:

Honoraria/Expenses
Authorized Status (J,O, P etc).

Honoraria/Expenses

Travel Expenses

Travel Expenses

Visitor's Status:

Work Authorized Status (J,O,P etc).

Visitor for Business or Tourist Status (B1,B2,WT,WB& combinations)

Tourist Status (B2,WT)

Visitor for Business (B1, WB and combinations WB/WT, B1/B2)

PSC

X

X

   

8233 Form if Appl.

if appl.

if appl.

   

Photocopy of I-94

X

X

X

X

Declaration Form

 

X

X

X.

Travel

if appl.

if appl.

X

X

Notes:

  1. Canadians who enter the country via air flight will be in the Electronic system ESTA, and they will have an electronic I-94.  If they drove into the U.S., they are presumed to be in a B tourist status, and will only be eligible to receive an honorarium if they are able to sign an International Visitors Declaration Form and provide a copy of their Canadian Passport.
  2. If your visitor is already in the United States in a J status, teaching or studying at another institution, and the University of Oregon is not their visa sponsor;  there are additional steps that must be followed which may allow us to pay your visitor. Please contact Joy Germack, Sr. Tax Analyst, in Business Affairs Office for more information before you make any visiting arrangements.

Honoraria & Travel Visit over 9 days.

When, in addition to Travel & Per Diem, the Honorarium is for more than 9 days and/or visitor has been reimbursed by more than 5 institutions in the last 6 months.

Honorarium over nine days or more than 5 other institutions in the last six months, your visitor must provide or obtain a work authorized Visa Status. Contact the Office of International Affairs.

Since your visitor does not meet the qualifications on the International Visitors Declaration Form they need to enter the country in a "Work Authorized" status.

Contact the Office of International Programs at least 6 weeks before the scheduled visit. They will help you obtain the appropriate 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.

AND

Important Tax Implications:

Honoraria payments are considered taxable income to a foreign national and will be subject to federal income tax unless your visitor is eligible for tax treaty benefits. In order to file a reduced rate of withholding certificate, they must have a federal tax reporting identification number. A visitor that is here on a work authorized visa type (J, O or P) need to have a Social Security Number. They may apply at the Social Security Office. The address of our local Social Security Administration Office is listed below.

1. If your visitor does not have a US tax reporting identification number, in order for them to claim treaty benefits, they are required to:

Apply for either a Social Security Number (SSN) or Individual Tax Identification Number (ITIN)

For SSN:

Social Security Administration
2504 Oakmont Way
Eugene, OR 97401-5441
Office Hours: 9:00 am-4:30 pm

Your visitor will be required to present a passport and DS-2019

Your visitor may apply for an SSN by mail, and would be required to send the original passport or a copy certified by the issuing agency (e.g. a copy of the passport would have to be certified by the U.S. Embassy in their home country) to the Social Security Administration. A certified copy of the DS-2019 will also need to be included. Start the process early, it can take up to six weeks before an SSN card will be issued.

Determine whether your visitor will be eligible for tax treaty benefits. See the

List of Countries with US Tax Treaties

If your visitor is not eligible for treaty benefits, payment will be subject to 30% withholding.

2. If your visitor does have a US tax reporting identification number, determine whether your visitor will be eligible for tax treaty benefits.

See the

List of Countries with US Tax Treaties

THEN

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. To file an 8233 form, the recipient is required to have a federal taxpayer identification number. 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.  Original, wet signature form must also be received by BAO before payment can go out.  Send original 8233 to Joy Germack, Business Affairs Office.

Forms Checklist:

Type of Payment:

Honoraria/Expenses
Authorized Status (J,O, P etc).

Honoraria/Expenses

Travel Expenses

Travel Expenses

Visitor's Status:

Work Authorized Status (J,O,P etc).

Visitor for Business or Tourist Status (B1,B2,WT,WB& combinations)

Tourist Status (B2,WT)

Visitor for Business (B1, WB and combinations WB/WT, B1/B2)

PSC

X

X

   

8233 Form if Appl.

if appl.

if appl.

   

Photocopy of I-94

X

X

X

X

Declaration Form

 

X

X

X

Travel

if appl.

if appl.

X

X

Notes:

  1. Canadians who enter the country without a visa type and therefore do not have an I-94 are presumed to be in a B tourist status, and will only be eligible to receive an honorarium if they are able to sign an International Visitors Declaration Form. The Initiating Department will need to obtain a copy of their Canadian Passport.
  2. If your visitor is already in the United States in a J status, teaching at another institution or working for another entity they are the sponsoring employer. If this is the case, there are additional steps that must be followed which may allow us to pay your visitor. Please contact Joy Germack, Sr. Tax Analyst, in Business Affairs for more information before you make any visiting arrangements.

1042-S Tax Form Frequently Asked Questions by Form Recipients

*What is a 1042-S form and when will I receive it in the mail?

  --The Form 1042-S is used to report amounts paid to and taxes withheld from foreign persons (including persons presumed to be foreign) that are subject to income tax reporting, even when no amount is deducted or withheld from the payment because of a tax treaty or exception. The Forms 1042-S must be mailed to 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.  The forms will be mailed to the most recent mailing address in Banner.

 

*Why did I receive an IRS Form 1042-S?

  --The University is required by IRS rules and regulations to report on a Form 1042-S certain payments made to nonresident aliens.  Additionally, the University may be required to withhold taxes on such payments.  The payment made to you was determined to be a reportable payment, with any withheld taxes also being reported, and thus you were sent a Form 1042-S.

 

*Is the IRS notified of the payment that I received from the University?

  --Yes, if you received a Form 1042-S, then the payment was also reported to the IRS.

 *What am I supposed to do with the Form 1042-S?

  --Use the information contained on the Form 1042-S to prepare your U.S. tax return if you determine you are required to file a return.

 

 *Am I required to file a U. S. tax return?

  --Information regarding the need to file a U.S. tax return can be found at https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

  and in the  IRS Publication 519 https://www.irs.gov/forms-pubs/about-publication-519 .  You will need to make your own determination whether you are required to file a U.S. tax return; the University encourages you to consult a tax advisor if you have questions regarding the need to file a return.