Reimbursements for qualified business expenses: To reimburse a foreign national for qualified business expenses (out of pocket expenses on behalf of the university) the following guidelines apply:
- Copies of documents required by U.S. Immigration (identified above) must be on file with the USM Foundation
- All supporting receipts must be submitted
- Accountable Plan rules apply
- No SS or ITIN # is needed
- Not subject to IRS withholding
Compensation for Dependent Personal Services Rendered: Dependent Personal Services requirements and rules apply when an employee/employer relationship exists:
- Compensation is taxed using the U.S. withholding rates.
- A foreign national can never claim exemption from income tax on Form W‐4. S/he must submit copies of all the general documents specified above, which are required for payment, along with a copy of SSN.
- Nonresident Alien must complete Form W‐4 as follows: single filing status, 0 or exemption
- Nonresident Alien employees can claim tax treaty benefits, if there is a valid dependent personal services article in the treaty between the US and their country
- Nonresident Aliens receive a Form W‐2 at the end of the year reporting any wages earned.
Compensation for Independent Personal Services Rendered: Honorariums, consulting fees, independent contractor services, stipends, etc. are Independent Personal Services. Compensation to a foreign national for such services requires the following documents/information is provided:
Copies of documents required by U.S. Immigration (identified above) must be on file with the USM Foundation; Copy of the letter/invitation/agreement from the campus department to the foreign national specifying what the payment is for;
- SS# or ITIN#. Payment of income to a foreign national cannot be made without a SS# or ITIN #.