Policies and Procedures
PAYING AND EMPLOYING NON
USCIS (formerly INS) and IRS REGULATIONS AND REQUIREMENTS
USCIS (U.S. Citizenship and Immigration Services) Regulations
Faculty members are most commonly the first point of contact for foreign
individuals who visit Wesleyan. While Finance does not expect
Faculty or Administrative Staff to become tax experts, we request assistance
with gathering important information from foreign individuals prior to their visit to
campus. The information needed from non U.S. citizens may be provided by
on an FNIF or Foreign National Information Form (see instructions for
Completing an FNIF at the end of this document).
A visitor’s USCIS visa
status (i.e. B, VWB, VWT, J, H1B) is the most crucial piece of information needed, and is the first
question that should be asked when an invitation is extended to a visitor.
The visa type dictates the purpose of the visit and determines whether payments
are allowed to be made to a foreign individual at all. In most cases, a sponsoring
institution is the only employer authorized to pay the individual. Careful
attention to the visa status will avoid a potential illegal payment or an
embarrassing situation whereby Wesleyan cannot make a payment to an individual
as promised. A payment that is accepted by a non U.S. citizen, but is not
considered an acceptable payment by USCIS guidelines is illegal and may result
in deportation of a foreign individual or a future denial of entry to the U.S.
by the USCIS. The USCIS and IRS are working more closely, especially since
9/11, to implement stricter regulations and penalties on foreign individuals
visiting the U.S. and receiving payments from U.S. sources. It is very
important to remember that an illegal payment, if discovered by the USCIS, does
have a greater adverse effect on the payee than the payer.
following visa types most commonly allow payments by Wesleyan. If considering
making a payment to an individual with a visa status other than one listed
below, please contact Christine Rodrigue, x3502.
foreign individual with a visa status of B-1 or B-2 is the most commonly paid by
Wesleyan. A nonimmigrant may enter the U.S. in B-1 or B-2 status in order to
engage in a “usual academic activity” for a period lasting not longer than nine
days at any single institution, and may be paid an honoraria as well as
associated incidental expenses. In order to enter the U.S. under this
provision, the visa holder may not accept honoraria from more than five
institutions or organizations within a six month period. This is commonly
referred to as the “9-5-6 Rule”. If the B visa holder is receiving an
honorarium to perform in an event or performance on campus, the event or
performance must be open to students and/or the general public with no admission
visa waiver visitor must be classifiable as a visitor for business or pleasure
under the rules governing B visas. Therefore, a visa waiver entrant may
undertake any activity that is appropriate on a B visa and be treated for tax
purposes the same as a B visa.
J-1 Professor or Researcher
J-1 professor or researcher may be sponsored by Wesleyan or another
institution. If Wesleyan is not the sponsor institution, professors or
researchers may participate in occasional lectures and consultations outside the
location of their exchange programs, as long as the activity is related to their
program objectives and not specifically disallowed by their sponsors. In order
to participate in these occasional activities for wages or honoraria, a J-1
visitor must obtain a letter from the inviting institution (Wesleyan), as well
as obtain a recommendation letter from their own institution supervisor.
F-1 and J-1 Students
Foreign students who are sponsored by and who are attending Wesleyan enter the
U.S. under an F-1 or J-1 visa. These students are only allowed to work for and
be paid by Wesleyan with specific restrictions. Reimbursement Payments to
students sponsored by Wesleyan are allowable, but greatly discouraged.
See memo regarding
taxability of payments to Wesleyan international students. An F-1 student, who is not
sponsored by Wesleyan, but participates in CPT or OPT training and possesses an
EAD card, may also work at Wesleyan. A payment to a F-1 or J-1 student
for services, who is not sponsored by Wesleyan, is considered illegal with
possible deportation consequences. It is allowed, however, to reimburse
an F-1 or J-1 non resident alien student, who is not sponsored by Wesleyan, for
expenses incurred. The expense payment requires all receipts and is federally
taxable to the student as an unqualified scholarship at a rate of 14%.
H-1B employee is only authorized to work for their petitioning employer. An
H-1B visitor petitioned by Wesleyan can only be employed by and receive payment
from Wesleyan. An H-1B visitor may not be paid by Wesleyan if they are
sponsored by any other institution.
Canadian and Mexican citizens can be paid by Wesleyan. Specific rules apply
(Internal Revenue Services) Regulations and Requirements
IRS requires that Wesleyan comply with specific federal tax withholding and
reporting regulations when making payments to Non Resident Aliens. For
tax purposes, all non U.S. citizens are considered to be Permanent Residents,
Resident Aliens, or Non Resident Aliens. Permanent Residents (persons
who possess a resident alien/green card) and Resident Aliens for tax purposes
are taxed in the same manner as U.S. citizens. Non Resident Aliens are
taxed under a separate set of IRS rules.
Residence status rules for tax purposes are governed by the IRS. Determining
residence from non residence can become complex and confusing. Therefore, prior
to a payment via Payroll or Accounts Payable, all payments to persons who
Wesleyan knows or has reason to believe are non U.S. citizens are required to be
authorized by the International Tax Administrator. The University's main goal is
to comply with USCIS and IRS regulations and to minimize Wesleyan’s tax
liability. Another important goal is to make foreign guests feel welcome, while
assisting them in minimizing their tax liability and any adverse immigration
When it is determined
that a non U.S. citizen is a non resident alien for tax purposes, it is required that 30% federal
tax be withheld from an Accounts Payable payment. Special withholding and
reporting rules also apply for Payroll payments.
If a visitor’s relationship with Wesleyan will last greater than 9 consecutive
days, it is required that the visitor be present in the U.S. in a visa status that
allows employment payments and receives payments through Payroll, regardless of
the amount of the payment. An individual’s country of residence, not
necessarily country of citizenship, determines if the individual is eligible for
a tax treaty exemption. If a tax treaty exemption applies, then the 30% federal
tax will not be withheld from most payments, if the appropriate paperwork is
completed and signed by the visitor.
Steps Required when Requesting an Accounts Payable Payment for
U.S. permanent residents, green card holders, follow the same procedures as U.S.
citizens. Complete a Substitute
W-9 for Individuals.
A non U.S.
citizen, who is not a U.S. permanent resident, must be present in the U.S. with
a temporary immigration status. Confirm that the visa type allows payment by Wesleyan.
See visa status' above.
collection of the foreign visitor’s individual and visa information on a
The most important information needed is a SSN/ITIN and past and present visa
types and dates.
Rodrigue, x3502 or
email@example.com to arrange a 15-20 minute appointment with visitors
during their visit to campus. If possible, a 2-3 week notice is
appreciated. Visitors should bring their passport and
visa/visa waiver, and SSN/ITIN (if applicable).
When completing a New Vendor Request, note in the Comments section
that the vendor is a non U.S. individual.
Payment will be
approved when tax residency and withholding status has been determined, and
all documentation is completed and signed.
If it is
determined that an individual is a non resident alien for tax purposes, then 14%
federal income tax is required to be withheld from the payment, unless the individual is
eligible for a tax treaty exemption benefit. The withholding percentage is
based on visa type.
Steps Required when Reimbursing a Non U.S. Citizen
a Travel Expense form to the voucher.
All receipts must be attached to the voucher, per the "Accountable Plan Rules".
Attach a copy of the individual's visa to the voucher.
Some visas do not allow reimbursements without tax implications, specifically
A payment made to a third party, on behalf of a Non U.S. citizen, must also
include a copy of the individual's visa attached to the voucher.
Steps Required when making a Payment/Reimbursement to a Wesleyan International
See attached memo regarding the
taxability of payments
to Wesleyan international students.
Steps Required when Employing a Non U.S. Citizen
If the non U.S.
citizen is a permanent resident, treat them in the same manner as a U.S.
A non U.S.
citizen, who is not a permanent resident, must be present in the U.S. on a
visitor’s visa. Confirm that the visa allows employment by Wesleyan.
A non U.S. citizen is identified while completing an I-9, upon arrival in Human
Resources. HR follows the policies and procedures for non U.S. Citizens
Income Taxation. The non U.S. citizen is given a FNIF form to complete and
is directed to contact Payroll for an appointment.
Completing an FNIF
non U.S. citizen, non permanent resident, is required to complete a Foreign National
Foreign National Information Form
The form is electronically submitted to Christine Rodrigue.
Foreign Tax Issues Website
Find more information on
payments to non U.S. citizens on our web site at