Foreign Nationals
What types of payments are covered by the foreign national procedures?
Payments to foreign national individuals who are receiving a payment in connection with their presence in the U.S. which typically means at the University. These payments apply to individuals for independent personal services, reimbursement of travel, lodging and business expenses, and awards and stipends.
Where do I get assistance about the process and forms for payments to foreign nationals?
Refer to http://www.bc.pitt.edu/payment/fnti.html. You can also contact the Foreign National Tax Processing Unit of Financial Operations (FNTPU) at jkaus@bc.pitt.edu or 412–624-8079.
I have a foreign national guest speaker coming in and she will be paid a modest honorarium. What is the easiest way to pay her?
Have the speaker complete the Foreign National Information Form (FNIF) and provide her U.S. social security number upon her arrival. Send the FNIF, Form I-94, Guest Speaker Contract and Disbursement Request to the Foreign National Tax Processing Unit for processing. These documents will then be forwarded to the Payment Processing Department for payment. If the FNIF or U.S. social security numbers are not provided, the IRS requires that 30% Federal income tax be withheld. If the payment is only for the reimbursement of travel, lodging or business expenses incurred in connection with the University visit, see the Q and A below about travel related expenses.
Where can I get the FNIF?
The FNIF and helpful information are available at the Foreign National Tax Processing Unit of Financial Operations and can be downloaded from http://www.bc.pitt.edu/payment/fnti.html.
Is the payment process the same for reimbursement of travel, lodging and business expenses of a foreign national?
No, if the payment is only for the reimbursement of travel, lodging and business expenses incurred in connection with a visit to the University. Complete and attach the Departmental Foreign National Tax Letter and a copy of the foreign national’s Form I-94 to the Disbursement Request. Forward the documents directly to the Payment Processing Department for payment. No other supporting documentation is required.
Is the University required to withhold Federal income taxes from payments to foreign nationals for speaker fees, honoraria or stipends?
Yes. We are required by Federal law to withhold 30% of Federal income tax from the payment unless the payment is exempt under a U.S. treaty and the payee has a U.S. Taxpayer Identification Number or U.S. social security number. If these two conditions are met, the Foreign National Tax Processing Unit will prepare an IRS Form 8233 for the foreign national to document the tax exempt status. Note that if a FNIF was completed for the payee in the current calendar year, it does not have to be completed again, but a copy needs to be attached to the Disbursement Request and submitted to the Foreign National Tax Processing Unit.
Our visitor doesn’t care about taxes and doesn’t want to fill out paper work. What do we do?
The foreign national’s Form I-94 must accompany the Disbursement Request in all cases when the payment to the foreign national is connected to a visit to the U.S. Additional documents and the payment processing depend on the type of payment. See http://www.bc.pitt.edu/payment/fnti.html.
The foreign national is providing services outside of the U.S. What’s the process?
Federal income tax and reporting requirements only apply if the foreign national is in the U.S. Payments made to foreign nationals who remain outside the U.S. are not subject to Federal income tax withholding and reporting. The department only completes and attaches the Foreign National Tax Letter and a contract to the Disbursement Request and submits the forms directly to Payment Processing for payment.
Where can I obtain tax information that I can provide to our foreign national visitors?
The University’s foreign national tax information website at http://www.bc.pitt.edu/payment/fnti.html and the Office of International Services web site at www.ois.pitt.edu have helpful information. IRS publications can be obtained at www.irs.gov. Select forms and publications:
Publication:
513: Tax Information for Visitors to the U.S.
515 Withholding of Tax on Nonresident Aliens
519: U.S. Tax Guide for Aliens
901 Tax Treaties
What are independent personal services?
Services performed as an independent contractor in the United States by a foreign national who is self-employed. Compensation for such services includes payments for contract labor; payments for professional services, such as fees to an attorney, physician, or accountant, if the payments are made directly to the person performing the services; consulting fees; honoraria paid to visiting professors, teachers, researchers, scientists and speakers; and generally, payments for performances by public entertainers. Still not sure? Contact the Foreign National Tax Processing Unit of Financial Operations at jkaus@bc.pitt.edu or 412-624-8079.
Can my department pay the legal fees for a Foreign National’s immigration petition?
All employment-based immigration petitions for which the University of Pittsburgh is the petitioner must be prepared by the Office of International Services (OIS) unless the Director of OIS, in consultation with the University’s OGC, authorizes the use of an outside immigration attorney. Contact the Office of International Services (OIS) before hiring an attorney or law firm.
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