decorative-icon Payment Process for International Individuals

 

International Individuals and International Visitor Payments  

Payment Process for Foreign Entities

Payment to International Individuals Flow Chart

Background for International Individuals Visiting Inside the U.S.:

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 who entered the U.S. with a "B" visa type, (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.  More information can be found in IRS Publication 515  https://www.irs.gov/pub/irs-pdf/p515.pdf

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 type 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 upon their 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 after entering the U.S. for this visit.  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. with a W-B or B-1 business visa type, 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" B visa type. 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 = Tourist,visitor visa type.

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

F-1 and J-1 visa, these students are sponsored by the University of Oregon already have their visa documentation on file with Global Education  

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 Independent Personal Services -

8233 - Request for treaty benefits, 8233 form is required IRS form used for international visitors, who are residents in countries that have a tax treaty with the U.S. Treaty benefits claim a reduced rate of tax on independent personal services that are performed inside the U.S. This form requires the visitor  to 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 

To submit a valid, completed 8233 (instructions) please contact Joy Germack, Business Affairs, for assistance. The form is not user friendly. 

  1. Send International Vendor a link to the form above.

  2. They need to fill out form. All fields/lines are required including calendar year at the top. And send to you using a Secure One Drive Link

  3. Share One Drive Link with with Joy Germack, Tax Services, Business Affairs 541-346-0782

  4. Review draft together for any missing information that needs to be added by vendor

  5. After any necessary corrections, Use a One-Drive Secure Link to send to International vendor for their Final review, changes, additions, and signature

  6. Once completed, send a copy of 8233 form (electronic, valid,signed) back to Tax Services/Joy Germack via the One Drive

    1. Tax Services will fax the copy of the form to the IRS for their 10 day review (required)

    2. Create the Banner invoice to make the payment (0% tax withholding) using a "payment date" of 10 days after Tax Services receives the copy

      • example: sent electronic copy 1/1, pay date 1/11

  7. Have the vendor mail in USPS a hard copy to the University of Oregon Business Affairs, Attention Tax Services 8233, P.O. Box 3237, Eugene OR 97403-0237

  8. An original, wet signature form must be received by Tax Services before payment will be approved.

8233 - Artists/Public Entertainment restriction. Many tax treaties contain a limit on the annual amount an artist can earn during a calendar year while inside the U.S. Due to the fact that the treaty benefits becomes null and void if the limit is exceeded, the University of Oregon is not able to give treaty benefits to artists from countries that have this limitation in their tax treaty with the U.S.

F-1 and J-1 visa students sponsored by the University of Oregon may be eligible for treaty benefits using the W-8BEN form. Contact Joy Germack Business Affairs Tax Services for more details. 

.

 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.

F-1 and J-1 visa students sponsored by the University of Oregon already have their visa documentation on file with Global Education. No I-94 attachment is required

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 Only-24595

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)

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

 

 

 

 

 

 

Signed UO International Visitor Declaration Form that not more than 9 days of services.

 

 

 

 

 

 

Treaty Benefits available using 8233 if resident of tax treaty country

8233 form, requires U.S. Tax ID number or SSN, Payment allowed 11th  day after 'valid' form is faxed to IRS, Original hard copy with Signature received by BA before Payment is released

2

Honoraria or Contract for Services Only-24595

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)

 

 

 

 

 

 

Signed W-8BEN & PSC or PO- to A/P

No Treaty benefits available

3

Honoraria or Contract for Services Only-24595

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)

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

 

 

 

 

 

 

Signed UO International Visitor Declaration Form that not more than 9 days of services.

Same treaty requirements as payment type 1 above

4

Honoraria or Contract for Services Only-24595

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)

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

Same treaty requirements as payment type 1 above

5

Honoraria or Contract for Personal Services Only-24595

UO Sponsored F-1 or UO Sponsored J-1

Can only Perform Services for UO

30%

Signed W-8BEN & PSC - to Accounts Payable

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

Same treaty requirements as payment type 1 above

 

 

 

 

 

 

 

7

Honoraria or Contract for Services Only -24595

Other visas Non-UO (not B-1, B-2, WB, WT, F-1, or J-1)

 

30%

Copy of most current I-94 form (or copy Canadian Passport)

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

Same treaty requirements as payment type 1 above

8

Travel Expenses-Volunteer

Business visa: B-1 or WB (ESTA)

Meets accountable Plan Rules

0%

Copy of most current I-94 form (or copy Canadian Passport)

 

 

 

 

 

 

Signed W-8BEN & PSC - to Accounts Payable

 

 

 

 

 

 

Signed UO International Visitor Declaration Form

Invitation letter outlining volunteer expenses that will be paid or registration as Volunteer with the Safety and Risk Department

If all conditions met, not tax reportable

9

Travel Expenses-Volunteer

Tourist B-2 or WT (ESTA)

Travel Less than 10 days

0%

Copy of most current I-94 form (or copy Canadian Passport)

 

 

 

 

Meets accountable Plan Rules

 

Signed W-8BEN & PSC - to Accounts Payable

 

 

 

 

   

Signed UO International Visitor Declaration Form

Invitation letter outlining volunteer expenses that will be paid or registration as Volunteer with the Safety and Risk Department

If all conditions met, not tax reportable
10 Travel Expenses-Volunteer 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)  
         

Signed W-8BEN & PSC - to Accounts Payable

Signed UO International Visitor Declaration Form

Invitation letter outlining volunteer expenses that will be paid or registration as Volunteer with the Safety and Risk Department

No Treaty Benefits allowed
11 Travel Expenses- no services.  Individual is UO related with a 95 ID number / No services UO Sponsored F-1 or UO Sponsored J-1 Coded 5XXXX - stipend 14% Signed W-8BEN- to Accounts Payable  
          Treaty Benefits requires U.S. SSN or TIN and student aid treaty article on W-8BEN form.
Must be resident of tax treaty country
If all conditions met, 0% tax
12 Travel Expenses-No services Non-UO Sponsored F-1 or non-UO Sponsored J-1 Coded 2863X - stipend 14% Signed W-8BEN & PSC - to Accounts Payable
 
 
          Copy of most recent I-94 No treaty benefits available
12a Travel Expenses - Volunteer -No services 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%

Signed W-8BEN to Accounts Payable

Copy of most current I-94 form (or copy Canadian Passport)

Signed UO International Visitor Declaration Form

Invitation letter outlining volunteer expenses that will be paid or registration as Volunteer with the Safety and Risk Department

 

If all conditions met, not tax reportable
             
13 Scholarship/Fellowship Stipends - No Services UO Sponsored F-1 or UO Sponsored J-1 Coded 5XXXX - stipend 14% *Signed W-8BEN- to Accounts Payable  
          Treaty Benefits requires U.S. SSN or TIN and student aid treaty article on W-8BEN form. Must be resident of tax treaty country If all conditions met, 0% tax
14 Scholarship/Fellowship Stipends - No services 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)  
          Signed W-8BEN- to Accounts Payable No treaty benefits available
15 Scholarship/Fellowship Stipends - Volunteer Other visas ( B-1, B-2, WB, WT, F-1, or J-1 not eligible) Coded 2863X - stipend 30% Copy of most current I-94 form (or copy Canadian Passport)  
          Signed W-8BEN- to Accounts Payable No treaty benefits available
16 Monetary Awards - no services All visa types, 30% applies to awards sent outside U.S. 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 type besides B, F, or J; please contact Joy Germack at jgermack@uoregon.edu.

 

Setting up an International Individual Vendor in Banner

We all of us want to get vendors set up as quickly as possible. While the W-8 forms are different than the W-9. There are some required lines that cannot be blank. I am hoping to save your department and A/P time by sharing these few required differences.

A Department can save valuable time.  Sending A/P  W-8BEN or W-8BEN-E forms with missing required information or signatures, slows down the vendor set up process for your vendor.

General form requirements below are per the IRS official guidance. The A/P department cannot give exceptions to these requirements. And will have to return the W-8 to you for correction before vendor can be set up.

~
W-8BEN Form (individuals only)

Valid version is Rev. October 2021, top left of form.

**There is space for two addresses, vendor's foreign address and a mailing address, but only their permanent address outside the U.S. is required.
The rest is REQUIRED to be filled out:
the foreign Taxpayer ID must be provided line 6a or the box checked line 6b
the Date of Birth is required line 8
the box above the signature must be checked, and
the signature cannot be typed in.
Treaty Benefits on W-8BEN form only available to UO students with SSN or U.S. TIN.
~~

W-8BEN-E Form (Businesses, occasionally individuals)

Valid version is Rev. October 2021, top left of form

**There is space for two addresses, vendor's foreign address and a mailing address, but only their permanent address outside the U.S. is required.

The rest is REQUIRED to be filled out:
the foreign Taxpayer ID must be provided on Line 9b . If the vendor is from Germany, this would be their Germany Tax ID Number.
W-8BEN-E requires one box be checked on BOTH Lines 4 and 5
the box above the signature must be checked, and
the signature cannot be typed in.
Treaty Benefits Part III, please TEAMS me or email Joy Germack jgermack@uoregon.edu to set up an appointment before sending W-8BENE to A/P so we can discuss applicable treaty article and its unique requirements.

Procedure:

Collect the appropriate W8 form from the individual. An individual may only fill out one of two forms, the W-8BEN or the W-8ECI.  The vendor may determine the appropriate form by following the criteria outlined at the top of each of the forms or their instructions. See Central Accounts Payable and Invoice Payments under Forms for W-8 forms and information.

W-8BEN: Individuals only, most common form for individuals. This form is used to claim foreign status and can also be used to claim treaty benefits for royalty/passive income or scholarships/fellowships only.
  • Individuals not eligible for the other W8 forms should use the W-8BEN.
  • A birthdate is required on the W-8BEN form.
  • A U.S. Tax identification number is not required unless treaty benefits are requested.
  • Part II, lines 9 and 10 are not required unless treaty benefits are requested.
  • Treaty Benefit requests for an exemption from tax withholding must be made "form"ally and do require a U.S. Individual Taxpayer Identification Number or a U.S. Social Security Number.
  • Not all countries have a tax treaty with the U.S., and not all tax treaties contain a tax exemption for for student scholarships/fellowships.
  • Royalty or scholarships/fellowships Treaty Benefits requests can be made using the W-8BEN form, and require completion of all fields in lines 9 and 10.
  • Independent personal services or honorarium Treaty Benefits requests can only be made one an 8233 form.   The 8233 form requires U.S. taxpayer identification number. Otherwise these payments will require 30% tax withholding.  All taxes withheld are paid to the IRS in the individuals name. See 1042-s reporting.  Contact Joy Germack at jgermack@uoregon.edu for assistance with the 8233 form.

W-8ECI: Used primarily by the payee or beneficial owner that all the income that is listed on the form is effectively connected with the conduct of a trade or business located within the United States.

  • The type of income must be identified on Line 9 of the form to qualify for exemption. If it is not listed we are required to obtain from the entity a different type of W8 form.
  • A U.S. tax identification number is required for exemption from tax withholding.

 

1042-s Tax Form

All taxes withheld from payments are paid to the Internal Revenue Service (IRS) in the vendor's name. 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

Vendors may use the information provided on from 1042-s to fill out a U.S. tax return and request a refund from the IRS.

Virtual Presentations

 

 

International Visitor Payment Flow Chart