Payments to Foreign Visitors & Entities Providing Services Within the U.S.
Payments to Foreign Individuals and Organizations
Many campus departments invite foreign nationals to campus to lecture, perform or provide services and agree to make some type of payment to these visitors. The visitor's visa status determines whether the college is legally able to pay such visitors, however, and this should be determined before the visitor comes to campus. General guidelines for visa types most common in higher education are listed below.
Alien registration or green card: Payment is allowed.
B-1, B-2: Honoraria payment is allowed if the visitor does not stay at Hamilton more than 9 days and attests that they have not received more than 5 honoraria payments in the last 6 months. Payment for services is not allowed.
F-1: Payment is only allowed if Hamilton is the sponsor of the visa.
H-1: Payment is only allowed if Hamilton is the sponsor of the visa.
J-1: Honoraria payment is only allowed if Hamilton is the sponsor of the visa or the institution that sponsored the J-1 provides a letter of authorization. Payment for services is not allowed.
TN (Canada, Mexico): Payment is only allowed if Hamilton is the sponsor of the TN.
Departments planning on issuing payment to short-term international visitors are encouraged to use this checklist to ensure required actions completed to issue payment.
Tax Reporting and Withholding on Payments to Foreign Persons and Organizations
The Business Office will reimburse the travel expenses for visitors if the sponsoring department authorizes the payment and provides original receipts.
In order for the College to issue payment to a foreign person or organization for goods or services, a valid W-8 form must be on file in the Business Office. The type of W-8 form required depends on whether payment is to an individual or organization as shown below.
W-8BEN Required for all other payments to foreign individuals. A social security or ITIN number is only required if the payee claims the income is exempt from withholding due to tax treaty benefits.
W-8BEN-E Required for all other payments to foreign entities. A social security or EIN is only required if the payee claims the income is exempt from withholding due to tax treaty benefits.
Payees required to submit a W-8BEN will normally be subject to withholding of 30% unless claiming tax treaty benefits. If such benefits are available, but the payee does not have a U.S. social security or taxpayer identification number (ITIN or EIN), the payee may apply for one. More information on this is available at https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin
The U.S. has tax treaties with over 50 countries and many exempt payments to foreign individuals and organizations from tax. In order to claim treaty benefits, a completed Form 8233 must be signed and submitted to the Business Office. The Business Office will assist individuals in preparing the Form 8233, but requires the following information to do so:
- Individual's name and U.S. address
- Social security number or TIN
- U.S. visa type and number
- Country and passport number
- Permanent foreign address
- Description of services
- Number of days the individual will perform services in the U.S. during calendar year
Please contact Amanda Gleasman in the Business Office for assistance with the Form 8233 and other questions regarding payments to foreign visitors and entities. Additional information is also available at FAQ.