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 original 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 of 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 persona 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 #.