Payments to Short-Term Foreign National Visitors

There are two different payment options for short-term foreign national visitors. The IRS imposes less complex rules in paying travel reimbursements than honoraria. Travel Reimbursements made to nonresident aliens (NRA's) for the purpose of defraying or reimbursing travel, meals and lodging expenses are not subject to withholding taxes. A travel voucher form with the attached receipts should be completed using standard University travel reimbursement procedures and processed to Accounts Payable (no 1099 issued; no 1042S issue; no W-8, W-9 or social security number needed).

The most common types that allow compensation for an Honorarium are B-1, B-2, WB, WT, and J-1. The B-1, B-2, WB, and WT visa holders can be paid honoraria only if they are at the University no longer than 9 days and have not accepted payment or expenses from more than 5 institutions in the previous 6 month period (9-5-6 rule). Visitors that are to receive honoraria and exceed the 9-5-6 rule will need to get a J-1 visa.

Additionally, before we can compensate a J-1 Exchange Visitor sponsored by another University, we are required to have prior written authorization from that University's "responsible officer" such as their International Advisor; permission letters from academic departments are not acceptable for this purpose.

All other visa types must be approved by the Office of International Student and Faculty Programs prior to offering compensation for honoraria.

Honoraria payments to NRA's are subject to federal income tax withholding at 30% unless specifically exempted by an income tax treaty. There are tax treaties with over 45 countries. Each treaty is unique. To claim a tax treaty exemption, the IRS requires a completed Form 8233 by the NRA prior to payment. If not exempted by a tax treaty, taxes must be withheld.

Sherry Willis in Payroll Services will perform a tax analysis and assist in the completion of the Form 8233. In order to perform the tax analysis, the following information is needed:

A completed Foreign National Information Questionnaire

A legible copy of their passort page, visa page and I-94 or I-94(W)

For J-1 visa holders, a copy of their DS-2019 stamped J-1 (and/or authorization letter)

A copy of their SSN/ITIN card (preferred)

If an individual does not have a SSN and is not eligible to receive a SSN, then the individual must have or apply for an Individual Taxpayer Identification Number (ITIN).

Additionally, if the University agrees to pay an honorarium, the IRS requires that the NRA complete a W-8 form (a Substitute W-8 Honorarium Form will be used by JMU) and file a US tax return using the 1042S form that will be sent by the University at year-end.