Payment Process for International Individuals
International Individuals and International Visitor PaymentsPayment 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 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. More information can be found in IRS Publication 515 https://www.irs.gov/pub/irs-pdf/p515.pdf
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.
F-1 and J-1 visa students 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 -
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
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 BAO for more details.
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.
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.
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 contact Joy Germack at firstname.lastname@example.org.
Setting up an International Individual Vendor in Banner
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 email@example.com 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 Servcie (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.