Payment to a non U.S. Citizen who will provide a service to Texas Woman's University and will be paid through the accounts payable system
Any department wishing to invite an individual, who is not a US citizen, to come to the United States to perform a service for the University, MUST follow the procedures listed below:
- Contact Diane Taylor, Non-resident Alien Tax coordinator, at 3563 to see if the individual that will be performing the service for the University is from a country that has a tax treaty with the United States. If a tax treaty does apply, a Form 8233 must be completed by the individual. The individual MUST have a taxpayer identification number (ITIN) to take advantage of the tax treaty benefit, which can take 4 to 6 weeks to obtain if he/she does not already have one. To obtain an ITIN, the individual must complete an IRS Form W-7 and follow the instructions.
- When the department has negotiated the details of the service to be performed with the individual, a Letter of Invitation should be mailed. This will insure that he/she arrives in the US in a status that will allow the University to pay for the services rendered.
- If the service to be rendered constitutes employment, follow the procedures for adding an employee to payroll. If the service is not considered employment (see Requisition for Individual Services) process a requisition following guidelines for the purchase of Professional Services.
- When the individual arrives in the United States, please have the Foreign National Information Form and the Form 8233 (if applicable) completed. This must be done before any payment is received. Place purchase order number on forms and forward the completed forms to the Payroll Manager in the Payroll Office for review and processing.
- Withholding tax will be deducted at the rate of 30% of the gross payment unless the individual is from a treaty country that allows exemption of services for independent personal services. To claim this treaty exemption, a Form 8233 must be completed.
Payment of an International Student as an employee through the payroll system
- A social security number is required to be an employee. If the international student does not have a social security number, contact the nearest Social Security Office and begin the process of obtaining the necessary number.
- An international student who wishes to work on campus must report to the International Education Office to complete an application for on-campus employment. The student's documentation will be reviewed to see if on-campus employment should be approved. When the director of the International Education Office signs the application, the international student will then go to the Student Employment Office to get a student work permit.
- Part 1 of the student work permit will be completed by the student, and Part 3 will be completed by the employing department. The student will then take the permit back to Student Employment for final processing. At that time, the employment paperwork will need to be completed; so it is important for the student to bring the passport and social security card.
- Bring the completed "Application for On-Campus Employment", the I-20 form, the passport to the Payroll Office. They will need copies for their files. Also, if the international student is from a treaty country, Payroll will have the necessary forms to complete to claim the treaty benefit.
- It is VERYimportant to note that the student on an F-1 visa cannot work more than 20 hours per week during the regular academic sessions (September through May). To do so would cause the student to be out of status, and therefore, no longer eligible for employment. During the summer, the student may work more than 20 hours per week with approval from the Financial Aid Office.
Payment of Scholarships or Fellowships to an International Student
- An international student may receive scholarships or fee waivers. However, a report is generated on a monthly basis to determine if the tuition and fees charged to a student exceed or equal the amount of the scholarships and/or fee waivers. If scholarship and/or fee waivers exceed the tuition and fee charges, withholding tax must be charged at the rate of 30% of the excess. This is charged directly to the student's account.
- reduced amount of withholding is available if the international student provides a copy of the I-20, F-1 visa and I-94 from the passport to the Payroll Office (coordinators of non-resident taxation)If those copies are provided, 14% of the amount that exceeds tuition and fees will be charged as withholding tax directly to the student account instead of the 30% rate.
- A tax exemption may be available if the student is from a tax-treaty country that has a scholarship exemption article. To claim the treaty exemption, a W8Ben will need to be completed, showing that the student is beneficial owner of the scholarship/fee waiver. That form will be good for three years.
page last updated 3/27/2014 4:32 PM