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Payments to foreign persons are complicated due to immigration and tax laws. A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, a foreign estate, and any other person that is not a U.S. person. 

Hamilton College is required by law to determine the legality of payment to the foreign person based on his/her immigration status (see Payment Matrix below) and the appropriate rate of tax withholding and reporting required for such payments.  The College uses Sprintax, Inc. for payments to foreign persons for the purposes of tax withholding and reporting.

Individuals

Email Amanda Gleasman at agleasma@hamilton.edu to obtain further information regarding payment and tax status. 

Individuals

Email Amanda Gleasman at agleasma@hamilton.edu to obtain further information regarding payment and tax status.

If the foreign person does not have a U.S. SSN or ITIN, all payments, with the exception of travel reimbursements, will be subject to tax withholding.  See Tax Withholding and Tax Treaty Exemption below.

Corporations and Other Entities

Email Amanda Gleasman at agleasma@hamilton.edu with the following information:

  • W8-BEN
  • Date payment is required

Foreign Source Transactions

Payments for activities and services that are performed outside of the U.S. are classified as “foreign source” and are not subject to U.S. tax.  Please submit the appropriate statement from the list below with your invoice or check request submission.  Email Amanda Gleasman at agleasma@hamilton.edu with any questions. 

NOTE: Payments for royalties and license fees are sourced where it is exercised or used and in most cases will be classified as U.S. taxable income subject to withholding.

Check Requests for Foreign Persons

To ensure your payment is available by the date required, submit the following items to the Accounts Payable Office at least one week prior to the event. The check request deadline is Monday by the close of business. Checks are available by Friday.

  • An approved check request with W8-BEN.
  • A copy of the visitor’s visa and/or passport.
  • A copy of the visitor’s I-94 admission record. The I-94 website provides the visitor’s most recent I-94 admission record.

Tax Withholding and Tax Treaty Exemption

If Sprintax determines the payment is exempt from tax withholding, the visitor must submit the following items to claim the income tax treaty exemption: 

  • W8-BEN and Form 8233
  • I-94 admission record
  • Visa/Passport
  • Social Security number with the US

If payments to your visitor are taxable (subject to federal tax withholding), we are required to withhold the appropriate rate of tax from the payment.  Typically the tax withholding rate is 30%.  When submitting a check request, specify withhold tax OR gross up as follows:

  • Withhold tax from the payment (visitor will receive payment net of tax withholding), OR
  • Gross up the payment and withhold the tax (visitor will receive the full payment amount).  NOTE:  Grossing up the payment result in an additional charge to your budget.

EXAMPLE:
To gross up a $500 payment, the check request would be prepared as follows:

13 Digit Acct. No Amount  
xx-x-xxxxxx-xxxx $  714.29 Amount charged to department including federal tax withheld.
    To calculate, divide the desired payment amount by 70%
10-0-000001-2130 ($ 214.29) Federal taxes withheld 30%
Total $  500.00 Net amount paid 

To withhold tax from a $500 payment, the check request would be prepared as follows:

13 Digit Acct. No Amount  
xx-x-xxxxxx-xxxx $   500.00 Amount charged to department
10-0-000001-2130 ($  150.00) Federal taxes withheld 30%
Total $   350.00 Net amount paid

Payment Matrix

Immigration law addresses whether it is legal to make a payment to a foreign person for services performed within the US.  This determination is based on visa classification and type of payment involved.  Refer to the matrix below for guidance.

Visa Status

Sponsoring Institution Is:

Honoraria

Fee for
Services       

Living
Allowance/
Stipends

Wages      

Alien
Registration/
Green Card
N/A: sponsor not required Yes Yes Yes Yes
B-1/B2 N/A: sponsor not required Yes: individual must sign a statement attesting that his visit at Hamilton will not exceed 9 days and he/she has not received more than 5 honoraria in last 6 months. No No No
F-1 Hamilton Yes Yes Yes Yes
F-1 Not Hamilton No No No No
H-1 Hamilton Yes Yes Yes Yes
H-1 Not
Hamilton
No No No No
J-1 Hamilton Yes Yes Yes Yes
J-1 Not Hamilton Yes: requires a letter of authorization from
the institution that sponsored the J-1.
No No No
TN (Canada,
Mexico)
Hamilton Yes Yes Yes Yes
TN (Canada
Mexico)
Not Hamilton No No No No
WT/WB NA: sponsor
not required
Yes: See requirements under B-1/B-2 No No No
Other Visas Contact Amanda Gleasman at ext. 4320 prior to making any agreements.   

 

For questions, please contact Amanda Gleasman at ext. 4320.

Contact

Business Office

Hours
M
8 a.m.-4 p.m.
Tu
8 a.m.-4 p.m.
W
8 a.m.-4 p.m.
Th
8 a.m.-4 p.m.
Fr
8 a.m.-4 p.m.

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