Financial Administration

Personal Services Payments - Attachment 7

REQUIREMENTS FOR PAYMENTS TO NONRESIDENT ALIENS

This is a checklist of documents required to be attached to the Payment to Individual Report (PIR) for different types of payments to foreign nationals. For more information, refer to the UW-Madison handbook "Payments to Foreign Nationals Immigration and Tax Considerations."

PAYMENT FOR SERVICES (Account Code 2620, 2621, 3840, 3845, etc.):

This type of payment requires that the foreign national enter the U.S. as a J-1 scholar. (For Canadian citizens, a TN visa is also acceptable.) Arrangements must be made several weeks in advance with the international program office on campus in order to ensure that the visitor can obtain the J-1 visa.

Forms to attach to the PIR:

  • IAP-66 Form (Photocopy of Copy 3 – must have INS entry stamp and "J-1 D/S" in Box 6. UW must be sponsor.)

  • I-94 Card (Photocopy of Departure Record attached to passport – must have "J-1 D/S" and entry date stamp matching IAP-66, Box 6.)

  • IRS Form W-8, Certificate of Foreign Status.

  • IRS Form W-7, Application for Individual Taxpayer Identification Number (ITIN) if person does not have a U.S. Social Security number (SSN) or ITIN. The individual must apply for ITIN in person at an IRS office or at various locations at UW-Madison (call 608/262-0582 for more information) by presenting Form W-7 along with the proper documentation. (See instructions accompanying Form W-7.) A copy of this form should be attached to the PIR.

  • Form 8233, Exemption from Withholding on Compensation, if tax treaty exemption applies. The 8233 Form must be filled out completely, including Treaty Article information. In the "Taxpayer Identification Number" blank, fill in U.S. SSN or ITIN, if available. If individual has applied for ITIN, fill in "ITIN applied for—see attached W-7" and attach a copy of the W-7. If individual does not have a SSN or ITIN and has not applied for an ITIN, the individual cannot receive payment.

TRAVEL REIMBURSEMENT (Account Code 2162):

This type of payment requires that the visiting foreign national enter the U.S. on a B-1 visa or WB visa waiver. Reimbursements may also be paid to persons on J-1, F-1, TN and H-1B visas. (UW need not be the sponsor.) Canadian citizens only may be reimbursed for travel expenses without a visa. If visitor has entered the U.S. as a tourist with B-2 visa or WT visa waiver, the UW cannot make any payments to the visitor or on behalf of the visitor.

Forms to attach to PIR:

  • I-94 (must have "B-1, WB, J-1, H-1B, F-1, or TN" designation)

  • IAP-66 (for J-1 traveler)

  • I-797 (for H-1B traveler)

  • I-20 (for F-1 traveler)

  • Travel receipts

SCHOLARSHIPS, FELLOWSHIPS, PARTICIPANT SUPPORT (Account Code 5709, 5710, 5711):

In general, foreign nationals receiving scholarship or fellowship payments must have a J-1 or F-1 visa; however, a visitor traveling on a B-1 visa waiver may receive "participant support"—Class Code 5710 for expenses associated with attendance at a workshop or conference. Breakdown of expenses must be explained on the PIR. In order to receive any type of scholarships, fellowship or participant support payment, an individual must have a SSN, ITIN, or have applied for an ITIN (attach copy of W-7). Taxes must be withheld at 30% for B-1 and WB visitors, unless payment is exempt under a treaty and the recipient has filed a Form 1001. Read the treaty table carefully for coverage—many treaties do not cover scholarship/fellowship payments. Scholarship recipients as well as conference participants who are J-1s or F-1s and who are not covered by treaties are to have tax withheld at a reduced rate of 14%.

Forms to attach to PIR:

  • I-94

  • IAP-66 for J-1

  • I-20 for F-1

  • IRS Form 1001 to claim treat exemption (must have SSN, ITIN or have applied for ITIN)

  • IRS Form W-7 if individual has applied for ITIN

ACADEMIC PRIZES AND AWARDS (Account Code 3750)

Recipient must have F-1 or J-1 visa. Tax must be withheld at 30% on all prizes and awards. Treaties do not exempt this type of payment.

Forms to attach to PIR:

  • I-94

  • IAP-66 for J-1

  • I-20 for F-1

  • SSN or ITIN or copy of W-7 for individuals who have applied for ITIN

RESEARCH SUBJECTS (Account Code 2637)

Research subjects should be either F-1 or J-1 visa holders.

Forms to attach to PIR:

  • I-94

  • IAP-66 for J-1

  • I-20 for F-1

  • SSN or ITIN or copy of W-7 for individuals who have applied for ITIN