Payments Made to Non Resident Aliens through Accounts Payable

Guide to paying Non Resident Aliens

Payments to Non Residents Aliens(non-Payroll)
Definitions
Required Forms
Visa Classifications
Frequently Asked Questions
To Learn More
1042S Tax Forms

Definitions

A “resident alien” is any individual who has been granted legal residency in the United States and has been issued a “green card.” Resident aliens are treated as U.S. citizens for tax purposes and must complete the tax forms required of U.S. citizens (i.e., W9 Form). Payments to resident aliens are typically not taxed at the point of payment but are reported to the individual and the IRS at the end of the calendar year on Form 1099.

A “non-resident alien” or NRA is a citizen of another country who has not been granted permanent residency in the United States. Such individuals are temporarily present in the United States and their ability to receive payment is often predicated by their visa status. Various forms are required before payment can be made. As a general rule, payments made to non-resident aliens are subject to a 30% withholding unless the tax rate is reduced or eliminated by the presence of a tax treaty. For information on tax treaties individuals should obtain IRS Publication 901 (http://www.irs.gov/pub/irs-pdf/p901.pdf) or contact Peter Barone at 627-3356 or via email at peter.barone@tufts.edu.

All individuals receiving payment from Tufts for services rendered MUST have a US tax identification number (social security number or ITIN – Individual Taxpayer Identification Number). The only exceptions to this rule are non-resident aliens who provide their services wholly outside of the US.

Required Forms

Resident Aliens

Non-resident Aliens

Forms

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Name Description Form Instructions
8233 Tax Treaty Form Tax treaty form required for non-resident aliens providing services to the University. PDF_Icon  
Alien B1 or B2 Attestation Forms Required of non-resident aliens present with a visitors visa. PDF_Icon  
Alien Payment Form Required when making any non-payroll payments to a non-resident alien. PDF_Icon PDF_Icon
W-8BEN Form Required for Non-resident Aliens. Also used to claim tax treaty benefits for scholarship/fellowship payments. PDF_Icon  
W-7 Application for IRS ITIN number Application to apply for an International Taxpayer Identification Number with the IRS. PDF_Icon  
W-9/AP Request for Taxpayer Identification and Certification Collection of tax information, required for non-employee disbursements. (Required for US Citizens and Resident Aliens) PDF_Icon  

Other IRS forms can be downloaded at: http://www.irs.gov/formspubs/lists/0,,id=97817,00.html

Visa Classifications

In order to receive payment, the NRA must have entered the US on a proper working visa sponsored by Tufts University. A proper working visa sponsored by Tufts implies an employee-employer relationship therefore payments to such individuals must be processed through Payroll. Visitors present on a “B” visa can receive payment provided certain requirements are met as detailed on the B1 Attestation Form. For your assistance, the following chart lists the visa types most commonly encountered at Tufts and describes any employment restrictions that they carry.

 
Visa Type Description Payment Source Employment Restrictions
A1/A2 Foreign Diplomatic Personnel N/A Can only be employed by a foreign government entity.
B-1 Visitor for Business A/P Not permitted to be employed in US. Can receive an honorarium payment provided certain conditions are met (see B1/B2 Attestation Form for details).
B-2 Visitor for Tourism A/P Not permitted to be employed in US. Can receive an honorarium payment provided certain conditions are met (see B1/B2 Attestation Form for details).
F-1 Student Service Center May be employed on campus by Tufts. Employment is restricted to 20 hours per week during academic year.
H1-B Temporary Worker in a Specialty Occupation Service Center Employment permitted only for sponsoring institution. Individual is paid through the Payroll system and will be subject to FICA taxes.
J-1 Exchange Visitor (Student) Service Center May be employed on campus by Tufts. Employment is restricted to 20 hours per week during academic year.
J-1 Exchange Visitor (Scholar) Service Center May only be employed by sponsoring institution.
O-1 Person of Extraordinary Ability Service Center May only be employed or compensated by the petitioning agency through whom the status was obtained.
TN Trade NAFTA (citizens of Canada or Mexico) Service Center May only be employed or compensated by the petitioning agency.

Please remember that in order to receive payment from Tufts all non-resident aliens regardless of visa type, must have a social security number or Individual Taxpayer Identification Number (ITIN). The only exception is for NRA’s who perform their services wholly outside of the US. Requests to pay an NRA through the Accounts Payable system (non-employment) must also contain a completed W8-BEN form and Alien Payment Form. Individuals present in the United States on a B1 or B2 visa must also complete the B1/B2 Attestation form.

Frequently Asked Questions

To Learn More

More information can be found on the Tufts International Office web-site:: http://ase.tufts.edu/icenter/currentTaxesPay.htm

A complete listing of IRS Tax Forms and Publications can be found at: http://www.irs.gov/formspubs/index.html

1042S Forms

Each year Tufts is required to report certain payments made to Non Resident Aliens on a 1042S form to the IRS. Forms are normally mailed by January 31 for prior year payments.

Forms are mailed to the permanent address listed on the Alien Payment Form at the time of payment. If you need a copy of your form, please e-mail AccountsPayable@elist.tufts.edu.

If you were employed by Tufts and paid through Payroll you need to contact the HR Service Center for a copy of your form.

Visit the International Center web-site for additional information about filing a tax return with the IRS.